Should you report an accident to your insurance company?

When you are involved in an accident, you should be careful about your next steps. One of them is typically reporting it to your insurance company.

The other driver may ask you to settle the case between yourselves and leave the insurance companies out of it if they believe they are at fault in order to avoid a potential increase in premiums (or if they don’t have insurance). Should you consider this?

Here is why you should report a collision — even a minor one — to your insurance company.

To protect your policy

One of the terms of your policy may be reporting an accident within a specified period. Thus, if you fail to do so, you may breach the contract. Accordingly, you may face certain consequences. For example, your insurer may cancel your policy or refuse to renew it.

To get more information about the case

When you report an accident to your insurer, they will investigate it. They will obtain more information from you, witnesses and the police report. This allows them to gather solid evidence to fight for your rights.

To avoid lawsuits

A driver may seem frightened at the accident scene, asking you not to contact your insurance company because they can’t afford to have another crash on their record. However, the same driver may take legal action against you later.

You may end up paying for their damages even if they are at fault. Since you didn’t notify your insurance company, they may not have evidence to protect you. Further, they may cancel your policy because you breached the contract. This means you may have to pay the other driver out of pocket.

If you are involved in an accident, and the other driver wants to handle the case without insurance companies, politely decline and contact your insurer. It will also help to get legal guidance to learn more about your options.


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