When to Report an Accident to Your Insurance
Even if you have never been involved in a car accident, chances are good that you may someday hit something with your car, or another driver may hit you. Accidents can be scary and may leave you confused and upset. Being prepared and knowing how and when to report an accident to your insurance company will help protect your rights to continue your auto insurance coverage and obtain reimbursement for your damages, if necessary.
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Right Away
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Although it isn't usually necessary to report an accident right away, some insurance companies may encourage you to do so whenever possible. It's not very common anymore, but some insurance companies still dispatch a claims representative who will travel directly to the scene of the accident and take an assessment of the situation as well as the damage to the vehicle. State Farm recommends that you notify your auto insurance agent immediately in the event of a accident. Immediate notification can help expedite the claims processing if you have a damage claim, and help you get things back to normal that much quicker.
As Soon as Possible
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Even if you are not required, or not able, to report your accident immediately, make every attempt to report the incident as soon as possible. Reporting your accident as soon as possible will allow you to recount the details of the incident while it is still fresh in your mind. Early reporting may also help protect your good standing as an insurance customer, and allow you to provide your side of the incident. Once you have provided your insurance information to any involved parties, the other driver may decide to contact your insurance company directly, particularly if the other driver feels entitled to compensation from your insurance provider.
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When There is Damage
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According to InsuranceHotline.com, most insurance companies have set a guideline that an accident should always be reported to the insurance company if damages meet or exceed $1,000 for one or both vehicles involved in an accident. Your insurance provider may have higher or lower limits, however. Review the terms of your individual auto insurance contract to determine the requirements your insurance provider has put in place for reporting an accident.
Not Reporting an Accident
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In some instances, you may feel that an accident is so minor, you need not report it to your insurance company. Even if that is true, report the accident anyway, especially if there are other parties involved. Minor damage to your vehicle on your own property may not require a report to your insurance company, but even a minor accident with another party may become a huge problem if property damage or personal injury becomes apparent weeks or months after the accident. If you do fail to report the accident, you may forfeit your right to coverage of a claim, and your insurance company may even revoke your coverage because of policy violation.
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References
- Photo Credit Damaged car after the traffic accident, turned overhead image by Viesturs Kalvans from Fotolia.com
