Should You Report an Accident to Your Auto Insurance Company if You Aren’t Making a Claim

Your auto insurance policy language will probably state that you are required to report all incidents which may result in a claim. It doesn’t matter whether the claim may be made by the policyholder or the other driver following an accident. Some drivers are reluctant to mention that they have been involved in an incident while on the road because they are concerned that their insurance provider will increase rates in subsequent years, but being honest with the insurance company is the best way to go in all situations.

Auto Insurance Companies and Driving Record Check

A standard practice for auto insurance providers is to run a driving record check on anyone who applies for coverage. This is part of the underwriting process, which helps insurers to determine the level of risk that a particular applicant presents for coverage purposes.

The insurance company can access a person’s driving record for six years prior to the date of the search. It will indicate whether someone has been involved in any accidents or accumulated any moving violations during that time.

In some states, an auto insurance company can conduct a credit check on a person who is applying for coverage. The insurer uses this information to determine who responsible a person is. It assumes that someone who has a good credit history will be equally responsible behind the wheel and may offer lower premium rates to customers with this type of credit profile.

Report All Accidents to the Insurance Company

Policyholders pay their premiums to their insurance companies to have protection in place if they are involved in an at-fault accident which causes personal injuries to the occupants of the other vehicle or damage to someone else’s property. Failing to report an event to the insurance company means that the policyholder may be missing out on a benefit that he or she is entitled to under the policy.

If the policyholder’s car is damaged in an accident, he or she will need to pay the policy deductible before the insurance company will pay for repairs. Unless the incident is a very minor one, the policyholder may not be able to determine the extent of the damage caused.

Reporting the incident to the insurance company will involve getting the damage inspected and evaluated properly. The policyholder can decide not to proceed with a claim if it turns out that the level of damage is about the same level as the deductible but it if turns out that the damages exceed the deductible, the insurance company will pay out on the claim.

Letting the insurance company know when an accident occurs is a good strategy, even if the other driver states that he or she will not be reporting the incident. Insurance information is exchanged when the accident occurs and the other driver involved may decide to sue the at-fault driver for damages. Reporting the accident to the insurance company means that it can prepare to respond to any possible claims promptly and it is a requirement for all policyholders.


Similar Posts