Jane Dotson
If you've been in a fender bender, you may be wondering whether to call your insurance company or not. While it's a good idea to contact them as soon as possible, there are times when you don't need to involve them at all, especially if you can cover the cost yourself, no one was hurt, and the damage is less than your deductible. Not involving your insurance company means your premium shouldn't increase due to a claim, but you'll need to pay for repairs out of pocket, which can be riskier and more expensive than expected. If you do decide to forgo filing a claim, it's important to get everything in writing and take photos of the vehicles involved.
| Characteristics | Values |
|---|---|
| When to call insurance | If the accident involves other people, vehicles, or property, or if the damage is more than your deductible |
| Reasons not to call insurance | To avoid premium increases, to cover the cost yourself, no one was hurt, and damage is less than the deductible |
| Reasons to call insurance | To cover repair costs, to act as a mediator, to receive funds faster |
| Potential consequences of not calling insurance | The other driver may change their mind and contact insurance companies, your insurance company may find out through police reports or the other party filing a claim |
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What You'll Learn
Your insurance premium may increase
If you don't call your insurance company after a fender bender, your insurance premium may increase. This is because filing a claim can cause your insurance premium to go up. The increase in your rates can be as high as 50% or more for the next few years, until the accident drops off your driving record. Even if you are not at fault, making your insurance company aware of the accident is a good idea.
There are times when you don't need to involve your car insurance company. This is usually when you can cover the cost yourself, no one was hurt, and the damage is less than your deductible. For example, if you get into a minor collision that doesn't involve another driver, such as hitting a sign or a pole, you can choose not to report the accident and pay for repairs out of pocket. In this case, not using insurance to cover the accident means your premium should not increase.
However, if you are in an accident with another driver, it is worth assessing the damage. If it is minor and you are both happy to settle by paying for repairs yourself, it may be cheaper than involving insurance companies. But, if the damage is more costly than expected, the other driver may change their mind and contact insurance companies. Even minor fender benders can be pricier to repair than expected, with the median cost to repair damage to both cars in a low-speed collision being $3,000.
If you do decide to proceed without filing a claim, make sure to take photos of both cars and get written agreement from the other driver. It is also important to note that, even if no one is hurt, having an official police report can be helpful if the other driver decides to sue for damages or medical injuries, or if there is more damage to your car than initially thought.
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The other driver might contact insurance companies
If you choose not to contact your insurance company after a fender bender, the other driver involved might still decide to contact their insurance company. This could happen if they start to experience pain or injuries hours or days after the collision, or if the damage to their car ends up being more costly to fix than they initially expected. Even minor accidents can be more expensive to repair than expected, with the median cost of repairing damage from low-speed collisions being $3,000.
If the other driver does contact their insurance company, they will likely file a claim against you for the damage or injuries. This means that your insurance company will find out about the accident, and your rates could increase by 50% or more for several years. To avoid this, you can try to settle the matter directly with the other driver by paying for the damage out of pocket. However, this comes with the risk that the other driver might not uphold their end of the agreement, as there is no mediator to hold them accountable without insurance involvement.
If you do decide to settle without involving insurance, make sure to take photos of both cars and get everything you agree on in writing. It is also important to assess the situation after a fender bender and determine if anyone is injured. Even if no one appears to be hurt, consider calling local law enforcement to file an official report. This can be helpful if the other driver decides to sue for damages or medical injuries later on, or if there is more damage to your car than initially thought.
While it may be tempting to avoid contacting your insurance company after a minor accident, it is important to consider the potential risks and costs associated with not involving them. The claims process is typically straightforward, and your insurance coverage is there to provide financial protection in the event of a collision. By involving your insurance company, you can receive the necessary repair funds faster and have a mediator to help determine fault and hold all parties accountable.
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You may save money by paying out of pocket
After a fender bender, you may be able to save money by paying out of pocket, rather than filing an insurance claim. Firstly, check your policy for any clauses regarding your duties after an accident, as paying out of pocket and not notifying your insurance company may violate the policy. Then, check your state's laws, as some states require you to report accidents that exceed a certain amount of damage. For example, in New Jersey, you must report accidents with over $500 of damage, while in other states, you only need to report if there was death or injury.
If you decide to pay out of pocket, make sure to take photos of both cars involved and get written confirmation of what has been agreed upon. This is because, if the other driver changes their mind, they may contact the insurance companies. This could happen if they start experiencing pain after the collision or if the damage ends up being more costly to fix than initially expected. Even minor fender benders can be expensive to repair, with the median cost to repair damage to both cars in a low-speed collision being around $3,000.
If the damage is only slightly more than your deductible, it may be cheaper to pay out of pocket, as filing a claim may cause your insurance premium to increase. However, it is important to confirm whether the estimate of the damage is accurate, as minor fender benders can be pricier to repair than expected. Additionally, consider your overall driving record, as insurance companies tend to favour historically safe drivers, and your rates may increase more significantly if you have a history of accidents or tickets.
If you finance or lease your car, you may have to report the accident to the lender and file an insurance claim, as some lenders have specific repair requirements and may repossess your car if you fail to follow their rules.
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Get an official report from the police
Getting an official police report after a fender bender is highly recommended, even if the accident seems minor and no one appears hurt. While the other driver may try to talk you out of it, having an official report helps if you need to file a claim against the at-fault driver's insurance for vehicle repairs.
In some states, such as New York, it is required by law to contact the police if someone is injured or passes away in an accident. Additionally, New York State law mandates that drivers report any accident resulting in injury, death, or property damage exceeding $1,000. Failing to do so could result in penalties, including fines, license suspension, and even criminal charges.
The police report will include information about the drivers, their insurance details, witness statements, and the circumstances of the accident. This unbiased account serves as proof that the accident occurred and can help prevent disputes between you, the insurers, and the other driver. It also ensures that you have an official record of the incident, which can protect you from legal consequences if the other driver decides to sue or if there is more damage to your car than initially thought.
In California, while a police report is not required for minor accidents, it is beneficial. Your insurance company may require a police report to prove the accident occurred before processing your claim. If the accident resulted in injury, death, or substantial property damage, you are typically required to file a police report and, in California, an SR-1 report with the DMV within a specified timeframe. Without a police report, it may be more challenging to receive compensation, as the insurance company could argue that the accident never happened or that your injuries were caused elsewhere.
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Your insurance company will likely find out if the other party files a claim
If you've been in a fender bender, it's generally a good idea to inform your insurance company, even if the accident wasn't your fault. While you may not need to involve your insurance company if you can cover the costs yourself, if no one was hurt, and the damage is less than your deductible, there are a few reasons why your insurance company will likely find out if the other party files a claim.
Firstly, if the other driver decides to file a claim, their insurance company will investigate and determine the extent of their insured's liability. If the other driver's insurance company believes that their client was not at fault, they may deny your claim or offer a lower settlement than what you expected. In this case, you would likely need to involve your insurance company to recover your costs.
Secondly, even if the other driver doesn't initially plan to file a claim, they may change their mind. This could happen if they start experiencing pain or injuries days after the accident or if the cost of repairing the damage turns out to be higher than expected. In this case, the other driver may decide to involve their insurance company, which could then reach out to your insurance company.
Thirdly, if you have collision coverage, your insurance company may step in and deal with the other driver's insurer, at least initially, to sort out the payment for repairs. This is especially true if the accident involved injuries and you need to make a claim for compensation. Your insurance company will have your best interests in mind and can help navigate the claims process, ensuring you receive the necessary funds for repairs or medical expenses.
Finally, even if you don't plan to file a claim with your insurance company, it's always a good idea to inform them of the accident. Many insurance companies prefer that you report an accident within 24 hours, and by doing so, you can receive repair funds faster if needed. Additionally, having an official report from the police can help if the other driver decides to sue for damages or if there is more damage to your car than initially thought.
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Frequently asked questions
First, check if everyone involved is okay and pull over to safety. Call emergency services if there are any injuries or hazards. Then, contact your insurance company to inform them of the accident, preferably within 24 hours. File a police report and submit an insurance claim.
If the accident is minor and you can cover the cost of repairs yourself, you may choose not to involve your insurance company. This way, you can avoid a potential increase in your insurance premium. However, be aware that repairs may be more expensive than expected, and settling without insurance means you won't have a mediator.
If you don't file a claim and the police aren't involved, your insurance company may not find out about the accident. However, if the other party files a claim or takes legal action, your insurer will likely become aware. Additionally, insurance companies can learn about accidents by examining your driving record or tracking loss data.
