It can be tempting not to file an insurance claim if the damage done has not been too severe. After all, no one wants their car insurance rates to increase because of a car accident. Hiding an accident from your insurance company, and paying for another driver's repair costs out of your own pocket can be costly and lead to more trouble than it is worth.
When To File A Claim
Reaching an financial agreement with another driver on your own can be risky. You leave yourself open to being sued at a later date if the driver discovers that the damage caused was more expensive than previously believed. You also leave yourself open to being liable to pay a lot more out of pocket costs. If the other driver makes a claim for injuries or damages at a later date, your failure to report the incident at the time could lead to your insurer denying you coverage. This is why it is wise to report a collision as soon as it happens.
When Not To File A Claim
In the event that you are involved in a single care accident with minor damage to your own personal property, and no personal injury, it might make more sense to pay for those repairs out of your own pocket. For example, if you hit a gate backing out of your own front garden, you would not necessarily need to contact your insurance company. If you are someone who has collision coverage, you would be covered for the repair or replacement of your vehicle no matter who was at fault in the accident. Whether or not you decide to utilise this coverage should be based on whether or not the cost of repairing your car is less than or comparable to the cost of your insurance policy deductible. If the cost of the repair is near to the deductible rate, there is generally, no need to file a claim.
The upshot is that no one wants their insurance rates to sky rocket because of a small accident. However, hiding an accident from your insurance company is not a good idea. Going down this route can leave you out of pocket and out of luck with your insurance company. Experts and car insurance companies recommend reporting an accident with another driver as soon as it happens. On the flip-side, it is OK to consider not filing a claim if you are involved in a non-injury accident that involves only your vehicle and your property.