Cost Considerations

• Before reporting an accident to your insurance company, compare the cost of repairs to the deductible for your collision coverage. If you get a couple of estimates from repair facilities and the cost to repair your vehicle is less than your deductible, you may not need to report the claim to your insurance company. However, if the repair costs exceed your deductible, the insurance company will pay the amount that exceeds the deductible. For instance, if you have a $500 deductible and it costs $1500 to repair your vehicle, you will pay $500 of the repair bill and the insurance company will pay $1000.
  
  

Premium Considerations

• Even if the repair costs for your vehicle exceed your deductible, you should also consider whether reporting a claim will increase your annual insurance premium. Most states prohibit insurance companies for increasing rates for an accident that is not your fault, but it can do so if you are at fault for the accident. If the accident was your fault, contact your agent and ask how much your insurance rate will increase and for how long. If the total amount of the premium increases exceeds the cost of repairs, there may be no benefit to reporting the accident to your insurance company.
  
  

Fault Considerations

• If you are involved in an accident with another driver, and the other driver is at fault for the accident, consider filing a claim with his insurance company. If there is a dispute regarding who is at fault, consider reporting the claim to your insurance company so it can investigate the accident. For accidents with other vehicles where you are at fault, try to resolve the claim without involving the insurance company if the damages are minimal and the other driver agrees to settle the matter without involving insurance.
  
  

Policy Considerations

• Some insurance policies impose time limits on policyholders to report claims. If you do not report the claim within that time period, the insurance company may decide to deny a late reported claim because you didn't abide by the terms of the contract. This can be a concern in cases where you are at fault for an accident and try to settle the claim directly with the other driver. If the repair facility finds hidden damages during the repairs, the driver of the other vehicle may demand additional compensation to pay for the repairs. If you report the claim to your insurance company to pay for the additional costs, it can deny the claim if you reported the claim after the deadline specified in the policy.