Having a small accident might not seem like that big of a deal, especially if reporting it is going to hike your car insurance rates. While your auto insurance might cover that ding or dent, in some situations, you might just keep the problem to yourself, pay for it out of pocket, and not make an insurance claim. And though that might be a viable option if you were the only car and driver involved in the accident (say you ran into a tree, for example), when there is another person and their car involved, it is almost always best to let your insurance company know.
File a Claim When Another Driver Is Involved or When Damage Is Possible
Even if the accident was minor and there is no visible damage on either of the cars or on either of the drivers, most people think they can can usually just settle the issue right there, right then, without the help of their insurer. The truth is, however, that you do not really know that person you are dealing with and that it could be risky to just take their word for it that they are not going to file a claim or open a lawsuit. What if they do ask you to pay for repairs months after the collision, but you don’t have record of their car or your car and you did not bring up the crash to your insurance company?
In order to make sure that you are protected, it is vitally important that you report any accident in which another driver and their vehicle is involved, even if, on the spot, you two try to work the problem out yourselves. It’s also a very good idea to take pictures of the car and any damage, just in case.
You should also tell your insurer about an accident, even if another person is not involved, if you suspect that your vehicle might need to be repaired because of that collision.
When Not to File a Claim
If you and only you and your car were involved in the accident and the cost of having anything repaired is less than your deductible, it is probably not worth your time to file a claim and notify your insurer. Even if the cost of the repair is more than the cost of your deductible, consider whether or not the hike in your insurance is worth filing a claim.
