Do I Need to Report Small Accidents to My Car Insurance Company?
Each day, there are hundreds of car accidents in the United States, and the majority of them are minor. You may want to think twice about calling the insurance company to report a fender bender, particularly if no one was injured. Cosmetic issues like scratches and dents may not make much sense to report, especially if they’ll raise your premiums or they’re not expensive to pay for the repairs out of pocket. Should you report—or shouldn’t you? Here are some factors you should consider before arriving at a decision.
Contractual Obligations
Read your policy closely, and you’ll probably find that you’re technically under a contractual obligation to report any and all accidents, no matter how minor. That means even reporting that dent you found when returning to the parking lot after running errands. It’s logistically impossible for an insurance company to enforce this clause, however. The bottom line is that you’re contractually bound to report any incident, but as long as no one was hurt and the police didn’t investigate or file a report, you can probably get away with not reporting. However, there are also possible ramifications if you don’t.
Reporting Minor Accidents
If anyone is at all injured during the course of an accident, you need to report it to the insurance company as soon as possible, even if the injuries seem too minor to merit a call. The reason is simple: adrenaline can easily mask the true extent of an injury and make it seem less serious than is actually is. And in some cases, you may not even notice some injuries, like whiplash, for a few days after the accident. Think of filing a report as an extra assurance. If your injuries manifest later, you’ll still be eligible for reimbursement for your medical expenses.
When the Other Driver Is at Fault
Another common scenario is when an accident is minor and one party is clearly at fault. Rather than report the accident to the insurance company and see their premiums go up, the driver offers to pay for your vehicle’s repairs out of pocket. While this may seem preferable to playing the insurance reimbursement waiting game, don’t be tempted. It’s never wise to rely on a stranger’s promise. Play it safe and report the accident to your insurance company so you’ll have assurance that your car’s damages won’t come out of your pocket.
Public Versus Private Property
An important consideration in your decision is whether the accident took place on public or private property. Any accident that occurs on a public street should be reported, but those that take place on private property, like parking lots, don’t necessarily have to be. If you’re partially at fault for the incident, reporting the accident may not be to your benefit. Use your discretion in deciding whether or not to report a minor accident that occurs on private property.
The Premiums Argument
Some drivers err on the side of not reporting an accident because they fear it will automatically raise their car insurance premiums, especially if they were at fault. Unfortunately, this isn’t a wise choice. If you were at fault, you may have received a ticket at the scene. Police officers will record citations on your driving record, which insurance companies will review before renewing your coverage. Getting caught in a lie may result in an insurer refusing to offer you coverage, and other insurers may follow suit. Paying higher premiums is better than not being able to secure coverage at all.
In general, it’s best to report accidents to the insurance company even if they’re minor. Erring on the side of caution is the wisest course of action, even if you’re at fault.