WEDNESDAY, JANUARY 27, 2021
Some drivers may hesitate contacting their insurance provider after an accident because they are afraid that their insurance rates will go up, but withholding information from your insurer can cause further problems down the line. This is in part because it is nearly impossible to withhold information from your insurer, as they generally work directly with the DMV. If there are any changes on your driving record, your insurance provider will be notified.
Withholding information from your insurance provider is known as “soft fraud.” Committing soft fraud can lead to an insurance provider cancelling your plan and refusing to insure you again.
Do You Have to File a Claim for Every Accident?
Although you should generally keep your insurer in the loop about accidents, this doesn’t necessarily mean that you have to file a claim for every bump or scrape. Neither does notifying your insurer of an accident immediately increase your insurance premiums.
For example, say you accidentally hit a curb and cause $500 in damage to your vehicle. If your deductible is $500, it would generally make more sense to pay for the damages out of pocket rather than filing a claim, as your deductible is equal to the damages.
On the other hand, if you hit another vehicle merging onto the highway, you will want to notify your insurer and possibly file a claim. Accidents concerning other people are always higher risk because of possible injuries and lawsuits. A driver may insist that they are not injured and so you don’t file a claim or notify your insurer, but later the driver comes back with a claim for a neck injury.
Since you did not notify your insurer as soon as the accident happened (especially if it’s outside of the normal window of filing a claim), you may not only not receive compensation but could face your policy being cancelled.
After your car insurance policy is cancelled, it can be hard to find affordable insurance again although not impossible. Insurance providers often share information when it comes to clients—not to mention the effect a cancelled policy could have on your credit score.
Be sure to speak with your insurance agent and keep communication open after an accident, especially during the claims process. Being honest about an accident can help the process go quicker and avoid any complications when it comes to receiving compensation.
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