Car insurance acts as a safety net against exorbitant expenses and possible lawsuits following an accident. However, some people are hesitant to call their insurance companies, especially if the accident is minor. The main fear is that their insurance premium will increase, and it may end up costing them more than the repairs. This is simply not true.
There is a difference between reporting an accident and filing a claim. It is true that filing a claim may increase the premium. At that point, a whole team of people is put into motion to assess damages and process the claim. Reporting an accident is different. This is an important step after any accident to ensure that coverage will be available if it is needed.
Unless there is a mechanic on the scene, the full scope and costs of damages are unknown. What looks like a small repair at the time, may end up being more costly when taken to an auto body shop Denver CO. This can be true for either party involved. Once the costs start increasing, a friendly agreement made on the spot can get more complicated. This is also true for injuries. Back and neck pain sometimes manifests days after an accident. By reporting the incident, there is an honest record of the event in case insurance or lawyers need to get involved later.
In order for repairs to be done quickly, both insurance companies should be alerted. Let’s say Bob and Jen bump bumpers in the parking lot. Bob knows it is his fault and agrees to pay for Jen’s repairs through his own insurance. Unless Jen also reports the accident to her insurance company, she will have to wait on Bob’s to process the claim and pay for any repairs. Remember, not all insurance companies are created equal. Jen may be waiting for months. Each state requires that accidents be reported within a certain number of days. By the time Jen regrets her decision not to involve her own insurance, it could be too late.
A person who seems nice and responsible after an accident could turn into a nightmare as soon as they are out of sight. This wouldn’t be a stretch for someone driving around without insurance. They could completely disappear or say the accident never happened. If the incident was never reported to the police or insurance, then there isn’t much that can be done.