Reporting Accidents to the Insurance Company

Not ever accident that you will encounter needs to be reported to your insurance company. There are times when it will be better to pay for the repairs out of pocket and leave the insurance company alone.

The sound of crushing metal causes everyone around to cringe. It hurts even more when you discover that it was your vehicle that was involved in the incident. You will need to understand a few things before you make the call to your insurance company.

When to Report Your Accident to Your Insurance

1. The first call you make in the event of an accident is to the police. It is important to get everything down on an official record.
2. Once the police have issued their report and the dust has cleared from the accident, then you need to begin looking for a repair shop. You will want to get two to four appraisals for repairs before you even consider contacting your insurance company.
3. Review your policy. Look at the details of the coverage. Take special notice of deductibles and other out of pocket expenses. Call your agent if you are not clear on the details but make it clear that you are not yet asking for an adjuster.
4. Research the value of the car. You need to know how much your vehicle is worth before you begin considering how much you will invest in it.
5. Consider the size of the project. Knocking out a dent may be a simple do-it-yourself project that requires no special tools. Sanding and painting a section of the car requires specialized equipment.
6. Compare your amounts.

• If the deductible amount is more than the repairs then you will want to avoid contacting your insurance company about the accident.
• If the repairs are substantially higher than the deductible then you will want to contact your insurance company and have them assign an adjuster to handle your claim.
• If the accident involved other vehicles then you will want to contact your insurance company no matter how much the repairs may run. There is no way to be sure how other victims in an accident will react to the situation. Your insurance company can become one more level of insulation to protect you.
• If the repairs will be more than the value of the car then you may want to consider skipping the insurance claim. Cosmetic repairs can be costly. Insurance companies will total a vehicle once the repairs become a certain percentage of what they deem the value of the car. You may want to skip the claim and the repair work if the car can be driven SAFELY without them.
• If you can complete the repairs on your own then you do not want to contact the insurance company.

You are never obligated to contact your insurance company. It is up to use if you use the services of your insurance policy or if you choose to pay for accident costs out of your own pocket. The benefit of reporting a claim is that if there are others involved then the insurance company will add one more level of protection for you. The downside of contacting your insurance company about an accident is that it may cause an increase in your premium amounts or deductible limits.

You will want to weight the cost of reporting an accident over not reporting it. Evaluate each situation as it comes up. Document everything that happens no matter which direction you decide to go. You need to understand your policy rights so you can determine the best time for reporting accidents to the insurance company and when you should bear the burden of the full repairs.