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Should Minor Car Accidents be reported to My Insurance Company?
April 11, 2020
Your choices should be carefully considered
There are situations where one might be better off paying for damages themselves following an accident. For example, when:
- The other vehicle was parked and unattended - and -
- The damage is well within your ability to pay out of pocket - and -
- There is no other passenger or pedestrian involved
Most insurance company rating programs will result in higher premiums following what is called an at-fault accident through the application of:
- Surcharges
- Loss of discounts
That is why and when it may be advisable to go it alone.
However, when two vehicles are moving - and/or - there is the possibility of someone claiming injuries there is much more at risk. If any of those factors are involved it would be in one’s best interest to report this kind of claim, even if they may be smaller in dollar value.
Why?
- Because it is all too frequent that stories change after a loss occurs.
- Mysterious injuries crop up after the fact.
- The other party’s description of the accident changes to favor them.
- Dollar values of the loss become inflated.
Having an insurance company represent your interest in a moving accident puts an expert in your corner without cost to you. That is, other than what might be a slightly higher premium at renewal. And though likely, a higher premium is not always the result.
Regardless, a slightly higher premium is a small price to pay for professional representation for claims scenarios involving injuries or stories that go sideways.
Important to keep in mind... scenarios frequently change following a claim. If you sense that the other party will attempt to use the incident to their advantage, don’t walk, run to report the claim to your insurance company.
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
