Informing Your Insurance Company On "Minor" Accidents

As a motorist, you have probably wondered whether you should inform your insurance company if you are involved in a minor accident. The reality is that there are many upsides, and few downsides, to informing your car insurance company whenever you are involved in a car accident that causes injury or property damage. The next time you are involved in a minor crash, know that while you don't have to file a claim, you should at least inform your insurance company for these reasons. 

Avoid Exaggerated Claims

One of the benefits of having auto insurance coverage is that your car insurance company will conduct accident investigations on your behalf if you are involved in an accident. This reduces the risk that the other party will inflate their damages and fleece you of your hard earned money if you are responsible for the crash. However, this will only be the case if you inform your insurance company about it. If you decide to face the music alone, then the other driver can easily claim an exaggerated amount of damages from you.

It's a Requirement

Another reason you should inform your insurance company about accidents you are involved in is that it is a requirement. Most states have laws that require motorists to inform their insurance companies when they are involved in an accident. Most insurance companies have the same requirement for the policies they sell. Sure, they might not come after you if you don't fulfill the requirement, but it makes it difficult for you to seek help from them in case you need help later on. It also paints you as a risky client for your insurance company, and everyone knows that you should always be on the good books of your insurance carrier.

Avoid Lawsuits

When you report an accident, the other motorist will not deal directly with you, but rather with your insurance company. This means even if the other accidents victims file a lawsuit, you will not be burdened by the cost of defending the lawsuit or paying the damages if you lose. You may think that the chances of that happening are rather slim, but what if the vehicle you damaged was a collector's car on a test driving session? What if an accident victim sustained hidden injuries that only flare out later? In all these cases, your auto insurance company may leave you hanging if you didn't inform them about the crash when it occurred.

To learn more, talk with your insurance company. In addition to offering insurance quotes, professionals can walk you through the claims process, so you don't make any mistakes along the way.