ENGLISH (832) 930-3059 | SPANISH (832) 356-7254
Daniel Albert Law FirmDaniel Albert Law Firm

Should You Call Your Insurance Company After a Minor Accident? – Bankrate.com

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Buying a home
Refinancing your existing loan
Finding the right lender
Additional Resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Compare accounts
Use calculators
Get advice
Bank reviews
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Compare by category
Compare by credit needed
Compare by issuer
Get advice
Looking for the perfect credit card?
Narrow your search with CardMatch™
Personal Loans
Student Loans
Other Loans
Loan calculators
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Best of
Brokerages and robo-advisors
Learn the basics
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Get the best rates
Lender reviews
Use calculators
Knowledge base
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Car insurance
Homeowners insurance
Other insurance
Company reviews
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Retirement plans & accounts
Learn the basics
Retirement calculators
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and reviewed by subject matter experts, who ensure everything we publish is objective, accurate and worthy of your trust.
Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you.
All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
This content is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate.com. HomeInsurance.com LLC services are only available in states were it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Getting into an accident can be scary. Fortunately, your car insurance can help cover your financial responsibilities. But if the accident does not result in major damage or injuries, you might wonder, “Should I call my insurance company after a minor accident?”
The short answer is yes — it is always a good idea to let your insurance company know when you have been involved in a collision. However, you might choose to pay for the repairs out of pocket, depending on the circumstances.
Paying out of pocket for a car accident always comes with a certain level of risk. With that being said, using insurance may not always be required. Not using insurance to cover an accident means that your premium should not increase due to a claim, which is a major benefit. Here are some types of accidents where using your car insurance may not be necessary:
If you get into a very minor collision that does not involve any other drivers, you can probably get away with paying for any damages out of pocket. An example would be driving into an object and getting a dent in your bumper or a crack in your windshield, but there is no other person injured or extensive damage caused. In this case, your insurance policy deductible might be higher than the cost of repairs, so filing a claim wouldn’t be financially beneficial.
The other situation where it might make sense to pay for accident damage out of pocket is if you get into a very minor collision with another driver. A classic example is getting rear-ended at a stop sign or brushing up against another car in a parking lot. Assuming the damage is minimal and both drivers agree on who was at fault, not using insurance could make sense.
However, insurance professionals generally only advise avoiding insurance in this situation if you can trust that the other driver will not file a claim without you knowing. If you feel any hesitation, it may be worth contacting your insurance company to avoid surprises down the line.
Car insurance is designed to protect your finances in the event of an accident, whether you cause a collision or get hit by another driver. While you might be able to get away with not contacting your insurance company after some accidents, more often than not, you will need to notify them. Here are some situations where you should contact your insurance company:
If you or the other driver involved in a collision are injured, you need to contact your insurance company. The bodily injury liability portion of your policy will cover any injuries unless you live in a no-fault state, in which case personal injury protection (PIP) coverage will typically kick in. Medical bills after an accident can be expensive, even if the injuries are minor. Using your insurance could save you a lot of money that would otherwise come out of pocket.
If you get into an accident and you do not trust the other driver’s account of the incident, make sure to report the accident to your insurance company. An example of this would be if you and the other driver cannot agree on who caused the accident or if you suspect that the driver may fake an injury to get more money from your insurance company in the future.
In the event that you get into an accident with major damage that will likely result in expensive repairs, let your insurance company know. Your property damage liability (PDL) should cover the other driver’s vehicle repairs if you are at fault. Similarly, if you are involved in a collision where another driver is at fault, their PDL should kick in to cover your vehicle’s damages. If you have full coverage, using insurance means you will not have to cover the full cost of repairs out of pocket in a covered accident, regardless of fault.
If you decide to pay for an accident out of pocket, you should consider a few things first. Even if a collision is minor and there are no injuries, that does not automatically mean that avoiding insurance is the right move. Here are a few things to think about:
First, make sure that the estimated repair cost for any damages is accurate. Do not rely on a quick search engine search to see what a certain repair might cost. Instead, go to a local body shop and have a mechanic give you a quote after examining the vehicle in person. The damage estimate may be significantly higher than expected and you may not be able to file a claim if you wait too long after the incident. There could be internal damage that you can’t physically see, which might lead to more extensive costs.
Before you decide to pay for an accident out of pocket, it is important to make sure you trust the other driver involved. You might both decide to cover the collision out of pocket, but there is no guarantee that the other driver will not file a claim later behind your back. If you have any doubts, it is a smart idea to contact your insurance company for peace of mind.
Some drivers have accident forgiveness included in their car insurance policy. With accident forgiveness, your rate will not increase after your first covered accident, assuming it is not a major accident. If you have first accident forgiveness, you might decide to contact your insurance company and file a claim, as it should not have any impact on your premium.
If money is tight, paying out of pocket after an accident might make more sense. It allows you to pay on your own schedule, which means you could avoid paying a large amount at one time. You can also get several repair quotes from different shops, whereas some insurance companies do not let you choose the mechanic.
When you get a car insurance quote, you are typically asked to disclose any recent accidents or traffic violations you have had. This includes incidents that were not covered by insurance. If you get a new car insurance quote, failing to disclose recent accidents could jeopardize your ability to get coverage.
Even in the event of a minor accident, it is a good idea to exchange information with the other driver and gather evidence of the collision. If the other driver decides to sue you in the future, having photo evidence of the damage could help you avoid an unnecessary legal battle.
No, your insurance premium should not increase if you decide to pay for accident damages out of pocket. However, if the other driver decides to file a claim without you knowing, your insurance rate could increase.
Insurance companies can determine your accident history by looking at your driving record. Unless you file a claim with your insurance company, or the police are called to the scene of the accident, it is unlikely that your insurance company will find out about a collision that you do not report.
As of 2019, the average cost of a property damage-only car accident was $4,600, according to the National Safety Council (NSC). However, the true cost of repairs will depend on the severity of the damage, the type of vehicle and where you live.
If your car insurance rate increases after an accident, there are a few things you could do to save money. Look for discounts you can take advantage of, consider raising your deductible, work on improving your credit score (if your state includes it as a rating factor) or think about switching to a different provider.
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access
BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access
© 2022 Bankrate, LLC. A Red Ventures company. All Rights Reserved.

source

Leave A Reply

Subscribe to our newsletter and promotions