When To Inform Your Insurance Company: What You Need To Know

Whether you should inform your insurance company of an incident or change in circumstances depends on the situation. For example, if you have been in a car accident, you are not legally required to speak with the other driver's insurance company, but you should contact your own insurance provider. However, if you have made changes to your home, such as replacing your roof, it is recommended that you inform your home insurance company. This is because a new roof can play a significant role in protecting your home from damage, which can impact your insurance policy rates. Similarly, if you have taken out an unsecured loan for a new car, informing your insurance company is not necessary, but doing so may result in additional charges. It is important to carefully consider each situation and seek clarification from your insurance provider to make an informed decision.

After a car accident

It is generally recommended to inform your insurance company about any car accident, regardless of how minor it may seem. While it may be tempting to avoid involving your insurance, especially if you believe the accident was your fault, doing so can have several benefits. Firstly, notifying your insurance company creates a record of the collision, injuries, and damages, which can be crucial if any disputes or legal claims arise in the future. Secondly, it helps to prevent any deadlines from expiring, as failing to notify your insurer in a timely manner could jeopardize your case.

When contacting your insurance company, it is important to be cautious about what you say. Avoid discussing fault or admitting blame, as this could negatively impact your claim. Provide them with the basic information about the accident, including the date, time, location, and names and addresses of all parties involved. You should also document the accident scene by taking photographs of any damage and relevant details such as traffic controls and visual obstacles. If there are any witnesses, be sure to collect their contact information as well.

In some cases, you may also need to contact the other driver's insurance company. If you are unsure of their insurance details, you can ask them at the scene or refer to the police report if law enforcement responded to the accident. When communicating with the other driver's insurance company, be cautious about the information you provide, as anything you say may be used against you if you decide to file a claim. Simply provide them with the basic details of the accident and refrain from discussing fault or providing recorded statements until you have consulted with an attorney.

If you have a new roof

While it is not necessary to inform your insurance company about routine home maintenance, replacing your roof is a major expense that you should disclose. Some policies may require you to inform your insurance company, and if they find out during an inspection that you did not, it could cause issues with your coverage.

It is in your best interest to inform your insurance company about a new roof, as it may lower your premium. Discounts for roof replacements vary by state and company, but a new roof could reduce your premiums by 5% to 35%, or even up to 20% according to some sources. If your new roof is made of impact-resistant materials, you may be eligible for an additional discount. However, some insurance companies may increase your premium after a roof replacement, as they may view it as an increase in the value of your home.

To ensure you receive any discounts you are entitled to, contact your insurance company or agent as soon as possible. Provide them with the necessary information, such as photos, invoices, and details of the materials used.

It is also important to prioritize regular roof maintenance to keep your insurance premium low. Get your roof inspected regularly and fix any weak spots immediately. By taking care of your roof, you can avoid more costly repairs and keep your insurance premium from increasing.

If you've changed address

Your address can influence your level of risk, and insurance companies keep track of accident reports, claim filings, and other relevant statistics in different areas. For example, if you move from a low-crime area to a high-crime area, your insurance premium may increase as a result. Similarly, if you move to an area with a higher chance of natural disasters, your premium may also increase.

In addition to this, each state has its own laws and requirements for car insurance coverage, so your current policy may not be valid in your new state. If you move out of state, you will need a new car insurance policy, even if you can stay with the same insurer. This is because every state has different coverage requirements and regulations.

It's also worth noting that some insurance companies are very strict about keeping your driver's license address and insurance policy address the same. Some will require you to update your address within 30-60 days of moving, while others will give you until your next insurance policy renewal.

To update your address, you can either do so online or over the phone. It's recommended that you also update any other information applicable to your policy, such as the primary driver and the vehicle details.

If you've changed your name

When changing your name with your insurance company, you may be asked to provide proof of your name change. This could include documents such as a marriage certificate, divorce decree, court order, or other legal documents. It is a good idea to contact your insurer and inquire about their specific requirements and procedures for updating your name on your policy.

In some cases, you may need to fill out additional paperwork and submit any required documents. Once your insurer has updated your policy with the name change, be sure to review the updated policy documents to ensure accuracy.

Additionally, it is important to note that the requirements for car insurance and registration may vary depending on your state. While most states allow car insurance and registration under different names, some states, like New York, require the names on the insurance policy and registration documents to match. Therefore, it is recommended to consult your insurer and understand the specific rules and regulations in your state.

While it may seem like a straightforward process, changing your name with your insurance company can sometimes be a bit complicated and time-consuming. It is always a good idea to be proactive and initiate the name change process as soon as possible to avoid any potential issues or confusion.

If you have an unsecured loan

When it comes to insurance, the company will want to know if the car is leased, financed, or owned. This information is necessary for them to determine if they need to inform the lender that you have insurance and provide them with the amount of insurance. The lender will want to know that their collateral is protected, and in the event of a claim, the insurance company may need to contact the lender to inform them of any damage or repairs.

It is important to note that disclosing an unsecured loan to your insurance company may have potential drawbacks. If you inform them, they may assume the loan is secured and charge you extra, typically $50 to $100 per year. In the event of a total loss, the insurance company's duty of care may be to pay the true owner of the car for their loss of security, which could result in additional costs and clerical work.

Therefore, it is generally recommended to not disclose an unsecured loan to your insurance company. However, it is essential to carefully review your insurance policy and consult with experts in the field to make an informed decision based on your specific circumstances.

Frequently asked questions