should we always report claim to our insurance company?

by admin on August 24, 2010

Should we always report claim to our insurance company?
We had a minor accident our deductible with our insurance company is 0.
The other driver accepted his fault and agreed to pay for the damage to car and personal injury if any and he said if estimate is an amount I can’t pay my insurance company will pay for it.
Now in this case should we report the accident to our insurance company?
Or we should settle with the faulty driver and/or his company?
if we involve our company will that raise our rate at the time of renewal?
please note that we are not at fault?

Also after reporting an accident to our insurance company, can we withdraw our claim from our insurance company if the faulty driver ready to settle?

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Jeff August 24, 2010 at 6:58 pm

Try to deal it out of pocket, otherwise insurance rates will go up much more. You can check how quotes will change here –

Vipassana August 24, 2010 at 6:58 pm

"Should you always tell the truth?" is the question you’re actually asking.

Depends. How honest do you feel?

Actually honest? Somewhat honest? Not honest at all?

Once you figure that out, you’ll know what to do.

Plus, if you do report it, there will be a record of it. So, if anything ever comes back at you, about costs, or filing, the insurance company already knows about it, and can pull up the history of how it was handled.

The alternative, is that they find out about it, and then you get to explain why you DIDN’T report it. And that won’t exactly make them more eager to assist you.

But ultimately, it depends on what your integrity is like.

pedro7of9 August 24, 2010 at 6:58 pm

Vip has a point…i had a accident in a parking lot….no damage to me…i called my co they said they would open a file in case other driver filed….never did…my ins didnt go up and .end of story…its only a claim if you want money

bandit_60 August 24, 2010 at 6:58 pm

if it was just minor then i would try to settle things between you two. some people do it that way so they won,t have to go through all the paper work but make sure they pay you to get your car fixed right away. don,t put it off or your claim might not be there.

Our Son is Due Sept 26! August 24, 2010 at 6:58 pm

If it wasnt your fault and he is paying for it, there is no reason to report it and no reason your insurance should pay a cent. Get a lot of pictures and if you can drive the car unfixed, I would until he pays up. If he doesnt, youll have to sue.

And in an accident that is your fault, if you can handle it without using your insurance, there is no reason you cant. It depends on how much the damage you caused was and if its worth your premium going up.

SA Writer August 24, 2010 at 6:58 pm

Most policies require that you report all accidents. In your case, the report is for your protection. If the other driver or his company refuse to pay, you could have trouble with your insurance company if you didn’t make a timely report. Your company cannot raise your rates if you were not at fault in the accident. When you file your report with your insurance company, let them know the other driver has agreed to pay for all damages. Your company will also get in touch with the other insurance company to monitor their settlement of your claim.

Howard L August 24, 2010 at 6:58 pm

Second question first. Once you report the accident to your insurance company the accident is in your record. Whether or not the insurance company pays or how much is somewhat immaterial. There would probably be no point in withdrawing the claim. On the other hand a minor accident not your fault will not by itself affect your rates, so there is no reason not to report it. If you have moving violations or other accidents that is another matter. If his insurance company gets involved the accident is on your record so you may as well let your insurance company handle it.

In most states an accident with damages totaling under $1,000 and no injuries does not require a police report so if that is the case you are not breaking any laws by not reporting the accident.

In my opinion if you handle this properly there will be no problem in settling with the other driver. Take pictures of the damage and get him to sign a complete release of any liability on your part and similarly sign a release for him if you are satisfied with his offer. Neither of you want this to bite you in the future.

RogerH August 24, 2010 at 6:58 pm

protect yourself always file a police report and report to your insurance as well.Even if your accident is minor always always make a report to cover your behind.

mbrcatz August 24, 2010 at 6:58 pm

You can wait until he doesn’t cough up, before filing the claim with your insurer.

You can ‘withdraw’ a claim, but it still shows up in your claim history – you can’t flat out cancel/erase a claim.

car253 August 24, 2010 at 6:58 pm

DO NOT SETTLE with the other party. BIG MISTAKE!!.

Let your insurance company pay for your claim. Other party is wrong. If other party does not have enough money to pay you his insurance company will not pay the difference.

IF you accept even $1 from the other party, your insurance is off the hook and will no longer help you at all. That is because you have settled the claim on your own. Don’t do it. Let the insurance company handle the claim. Things can and do go wrong.

lucy August 24, 2010 at 6:58 pm

like the other poster stated, if you take a $1 from this guy, your insurance company wont handle it.

too many times the other guy says dont file insurance, i will pay. but when you get an estimate they find ways to not pay. what if they find more repairs after you get an estimate? he will state dont owe. but if under insurance, they would cover.

yes you can file with your insurance and withdraw. but that is not a guarantee your rates wont increase even if found not at fault. some companies even just reporting a claim will increase rates.

if this guy does not pay you say w/in a week or 2, get on the phone and file with his insurance company. cause if he does not pay quick, most likely will never pay. so many claims are filed since the other party says they will pay and 2 or 3 months later, the other person no longer returns phone calls etc.

good luck;

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