Do I Have to File an Insurance Claim After an Accident?
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She covers topics ranging from car insurance to healthcare costs.
Reviewed by
Jeff Green has held several positions at life insurance companies, Wall Street firms, and distribution organizations over his 40-year career.
Car accidents are stressful in numerous ways. Worse, the thought of reporting the accident to your insurance company and possibly facing higher rates afterward can easily add to this stress.
Filing a car insurance claim after an accident is usually the best thing to do. Here's a closer look at when you really don't need to or shouldn't file a claim and why.
And remember, your independent insurance agent is not just there to help you find a policy. A local agent will be there for you at claim time, offering advice and helping you through the process.
Can You Decide Not to Report an Accident?
According to insurance expert Jeffrey Green, auto insurance policies require you to report any accident you're involved in. To avoid violating the terms of your policy, it's safest to just report an accident to your insurance company right away, regardless of the severity.
What Happens if I Don't File a Claim?
Green added that not reporting an accident can cause problems in the future if the other party decides to file a claim. If your insurance company finds out that you failed to report an accident you were involved in, it could refuse to pay for any damage you discover on your vehicle later on. Worse yet, the insurance company could also invalidate your coverage altogether.
In many states, it is required that you not only report an accident to your insurance company, but also to the police. Not reporting an accident to police in these states can result in fines, misdemeanor charges, or even felony charges. To avoid paying fines or facing other legal consequences on top of the possibility of losing your auto insurance, be sure to always report an accident ASAP.
How Long After an Accident Do I Have to File a Claim?
Different insurance companies have different requirements about how soon you need to file a claim after a car accident. Most insurance companies, however, expect that you'll file a claim immediately after the accident. Some companies may give you 24 hours to report an accident, while others might allow slightly longer time frames.
In general, sooner is always better to file accident claims with your auto insurance and to report the accident to the police. If you're unsure of your state's specific laws for reporting accidents or your insurance company's guidelines for how long you have to file a claim, an independent insurance agent can help resolve any confusion. They can also file claims with your insurance company for you after an accident.
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When Is It OK to Not File an Insurance Claim?
While it's usually best after a car accident to file a police report and an insurance claim, especially if the accident is serious, there are some cases where filing a claim might not be necessary.
Single-Car Accidents With Minimal Damage
If you have a collision involving just your own vehicle (say, you backed into a tree), you don't always have to file a claim. If your car damage is less than $1,000, it may be better to pay for the repairs out of pocket and avoid a potential increase in your insurance rates at your next renewal.
When the Repair Costs for Your Vehicle Are the Same or Less Than Your Deductible
If your claim amount is equal to or less than your deductible, filing an insurance claim is usually not necessary. There's little benefit in filing a claim in which you'll have no payout.
What's more, even if the repair costs are just a little more than your deductible, filing a claim might be unnecessary. It'll be added to your claim history with little benefit for you.
When the Out-of-Pocket Costs Are Less Than a Potential Rate Increase
After you've filed a claim or two, your car insurance rates may increase. If the rate increases could be more over time than the initial out-of-pocket costs for repairs, consider taking on the repair costs yourself. Because most accidents stay on your claims history for around three to five years, not filing that small claim may save you in the long run.
You've Had a Minor Accident and Agreed to Settle Privately With the Other Driver
Sometimes the parties involved in a minor accident will agree privately on how to settle the damages. If everyone acts in good faith, this can save everyone the trouble of filing an insurance claim and potentially getting their rates increased. This method, however, is not without potential pitfalls. If you're not the at-fault party, you could end up paying for damages that are not your fault.
You Aren't Concerned About Cosmetic Damage to Your Car
If you've got an older car and you're not concerned about cosmetic damage, you might consider foregoing a claim and simply living with the damage. As long as the car is safe and the engine works, a few scratches aren't always the end of the world!
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How Can an Independent Insurance Agent Help?
You should always file an insurance claim if you're involved in an accident where the damage is significant or there are injuries. If you're not sure what to do, your best bet after an accident is to call your independent insurance agent. Even if your accident is minor, your agent can advise you on the best course of action.
And if you do file a claim, independent insurance agents are there for you during the claim process and beyond.