File a claim

Auto insurance companies want to know about the even the smallest accidents. If your deductible is more than the cost of your repairs, you are probably better served to pay the bill yourself and leave your claim unreported. You may be reluctant to file a claim because you fear that your premium will go up or your insurance will be cancelled. There is no law that requires you to report an accident to your insurance company, and you should remember that every time you file a report with your auto insurer, even if the damage is less than your deductible, it goes on your insurance record. In most cases, you auto insurance premiums are not affected unless the insurance company has to pay out on a claim.

In general, an insurer will increase your premium for each chargeable claim made against your policy above a specific dollar amount. A chargeable claim is one the insurer considers primarily your fault. The percentage that your premium will rise will vary from insurance company to insurance company. These increases generally stay on your premium for three years following the claim.

Your company may also decide not to renew your policy if your driving record gets markedly worse or you have several accidents. Different insurers have different rules about what constitutes an unacceptably bad driving record. Some accidents, such as those caused by drunk driving, will probably trigger a nonrenewal from virtually every insurance company.

If you have an accident but do not report it to your insurance company, you are taking a risk, even if the damage seems minor. If the other driver sues you weeks or months later, if you did not report the accident to your insurance company, your failure to report the accident might cause your insurer to refuse to honor the policy. If your insurance company does honor the policy, the delay will certainly make it harder for the insurer to gather evidence to represent you in court. Failure to report the accident can put you at risk.

If there is another car involved or if there is a passenger in your car when you have an accident, you need to let your insurance company know about the accident to protect yourself. You are at risk that the other driver or your passenger will file a claim on your insurance. You need to report the accident to get the official record with both the police and your insurance company. Even if all of the people seem uninjured at the accident scene, injuries are not always immediately apparent. Sometimes injuries will not show for a day or two after the accident and then there could still be large medical bills. Protect yourself when people are involved.

Articles and links on filing an auto insurance claim