Auto Insurance: When To Involve Insurers In Small Accidents

Involving your insurance company after a minor car accident is not always necessary. If you know you can cover the cost of repairs yourself, no one was hurt, and the damage is less than your deductible, you may want to avoid doing so. This is because filing a claim may cause your insurance premium to increase. However, it is important to note that covering the cost of an accident out of pocket does come with risks. For example, if additional damage is found or someone involved claims injuries at a later date, you will be held responsible for covering these additional costs.

If the damage cost is close to your deductible

Before deciding to pay for repairs yourself, it's important to confirm whether the estimate of the damage is accurate. Even minor fender benders can be pricier to repair than expected. If you trust your local auto body shop, get a written repair estimate and discuss whether anything might cause the cost to increase.

If the final bill is higher than expected and you decide you want to file a claim, be sure to do so as soon as possible. Most insurance companies require policyholders to report accidents within a certain time frame. Check your policy for more information.

Only you or you and one other driver are involved

If you've been in a minor fender bender, you may be wondering whether to get your auto insurance involved. Here's a detailed guide on what to do if only you or you and one other driver are involved.

Firstly, it's important to assess the situation and check if anyone is injured. If there are any injuries, no matter how minor, it's recommended to involve your insurance company. If there are no injuries, you can consider handling the incident without insurance involvement.

If the accident only involves you and your vehicle, and the damage is minor, you may want to pay for the repairs yourself, especially if the cost is less than or close to your deductible. This is because filing a claim may cause your insurance premium to increase. However, before deciding, it's advisable to get a written repair estimate from a trusted local auto body shop to ensure you're aware of the potential costs.

Now, if the accident involves you and one other driver, there are a few things to consider. Firstly, determine who was at fault and try to get a written statement from the other driver accepting fault. If it's clear who is at fault, and the damage is very minimal, you may choose not to involve insurance. However, it's important to proceed with caution as the other driver may change their mind later, especially if they start experiencing pain or if the repair costs are higher than expected. To protect yourself, make sure to take photos of both vehicles and get everything you agree to in writing.

Even minor fender benders can be expensive to repair, and the other driver may not always be honest or cooperative. Therefore, it's generally recommended to involve your insurance company, especially if you're unsure about the extent of the damage or if you're concerned about potential injuries. While your insurance rates may increase, having the incident on record can protect you from future complications.

Remember, each situation is unique, and it's always a good idea to review your insurance policy and understand your rights and responsibilities before making a decision.

You've made several claims before

If you've made several claims before, it's worth considering covering the cost of repairs yourself. This is because filing multiple claims can cause your insurance rates to increase by 50% or more for the next few years. This will remain on your driving record for at least three years.

The impact of making a claim varies by state, insurer, and the time elapsed since your last claim. However, if you've made several claims in the past, it's likely that your rates will increase significantly.

Even an inquiry can impact your rates. A claim inquiry or a call to your insurance agent or company regarding an accident may end up on your claim history, even if you don't make a claim. If your record shows one accident but three inquiries related to an accident or claim in the last three years, insurance companies may consider you a risky driver, which could result in a rate increase or cancellation.

Therefore, if you've made several claims before, it's advisable to pay for minor repairs yourself to avoid further increasing your insurance rates.

No one was injured

If you've been in a minor car accident where no one was injured, it's important to take the same precautions as you would in a more serious crash. Even if no one is hurt, you should still move your car out of the way of traffic to a safe location.

You should then exchange information with the other driver(s) involved. Ask for their full name and contact information, the name of their insurance company, and their license plate number. Take photos of the accident scene, including vehicle damage, the position of the vehicles, and the location of traffic signals and signage. If there are any witnesses, ask them if they can provide a statement. It's also a good idea to call the police to report the crash so there's an official record of the incident. This can help insurance companies determine who is responsible for paying any claims that are filed.

You should also notify your insurance company, even if you don't plan on filing a claim. Your insurance rates may increase as a result of the accident, but failing to report it could result in denial of coverage or cancellation of your policy if you do decide to file a claim later on. It's worth noting that some injuries may take hours or days to appear, and certain types of vehicle damage may not be visible at first glance. So, what seems like a minor fender bender could end up being more severe than initially thought.

If you decide not to involve your insurance company, you should still try to get an estimate of the damage from a body shop. Even minor fender benders can be pricier to repair than expected. If the cost of repairs is close to your deductible, you may want to consider paying out of pocket to avoid a potential increase in your insurance premium. However, be aware that the other driver may change their mind and decide to contact insurance companies if they start experiencing pain or if the cost of repairs is higher than expected.

The damage is minor

If you've been in a minor car accident and the damage is minimal, you may be able to reach an agreement with the other driver to avoid a claim and not do anything at all. If nothing needs to be repaired, there's nothing to file a claim over. However, it's important to exchange contact and insurance information in case you do need to make repairs, as sometimes damage shows up later.

If you're in a minor accident and the damage is close to your deductible, you should probably handle the repairs yourself. That's because filing a claim may cause your insurance premium to increase. If the damage costs less than your deductible or just slightly more, consider paying out of pocket. Keep in mind that your insurance company probably requires you to file a claim within a certain amount of time after the accident. Be sure to get your estimate within that timeframe if you do end up wanting to file a claim.

Before going the pay-it-yourself route, you should confirm whether the estimate of the damage is accurate. Repairing the damage from even a minor fender bender can be pricier than many car owners expect. If you trust your local auto body shop, get a written repair estimate and discuss whether anything can cause the cost to increase.

If the final bill is high and you decide you want to file a claim, make sure to do so as promptly as possible. Most insurance companies require policyholders to report accidents within a certain time frame. Check your policy for more information.

If you've been in a minor accident with another car, you'll both need to be on the same page before you proceed. If the other person wants to get their insurer involved, it's highly likely that yours will be notified at some point in the process – if that's the case, you should contact your insurance company right away.

Frequently asked questions