You have an important decision to make after a car accident. If you report the accident to your insurance company, your insurance rates will likely increase. If you’ve been involved in several accidents or have multiple speeding tickets, your auto insurance might even be canceled after reporting the accident.
The alternative is to bypass the auto insurance company and choose to handle the matter on your own. However, taking the DIY (do it yourself) approach has the potential to backfire.
To Report the Accident or not Report the Accident? That is the Question
Though you have the option to keep the accident between yourself and the other driver(s), doing so is usually a mistake. If another driver is even partially at fault, there is no guarantee he or she will pay for the damage to your vehicle. Nor is there any guarantee that the negligent driver will pay for your ensuing medical bills. Negligence is a legal term that means a party failed to provide due care.
Keep in mind that there is a chance that you will experience whiplash, a strain, or even a TBI (traumatic brain injury) that doesn’t manifest until days or weeks pass. Failure to report the accident to your auto insurance company puts the burden of proof on yourself to establish a causal relationship between the crash and your injuries.
Making the Case for Keeping the Accident a Secret
If you bump into a traffic sign, curb, light post, or other stationary object and all or most of the damage is to your vehicle, reporting it to your insurer might not be in your interest. Rather, it might be more prudent to pay for your vehicle’s damage out of pocket without reporting the accident to your auto insurer. If you were to report the incident to your insurer, your deductible might be greater than the cost of repairs, meaning you’d pay for the repair and also possibly face an ensuing penalty in the form of an insurance rate hike.
If your car collides with one or several other vehicles and the damage is minor, the two or three of you might agree to handle the repair costs on your own without involving your auto insurance companies. However, doing so is risky as there is the potential for the other driver(s) to provide incorrect contact details or simply refuse to answer your calls after the initial exchange.
If the at-fault driver admits fault at the site of the accident and offers you an immediate cash payment, think twice before accepting it. The repair bill might be more than the cash offered by the negligent driver. Moreover, there is also the possibility of the other driver offering fake bills.
Sweat the Small Stuff of the Accident
Be careful when interacting with other drivers and parties involved in the accident. Do not admit fault. Do not say you are sorry or apologize in any way. Instead, record the interaction with your smartphone’s video camera.
If you decide to report the accident to your auto insurer, be sure to contact the police for a formal accident report. The police report detailing the accident will support your insurance claim and a potential personal injury lawsuit.
Be Mindful of California’s Laws
California drivers are legally required to file a written crash report with local police or the California Highway Patrol within 24 hours or less after the accident. However, this rule is only applicable to crashes that cause injury or death.
The accident is also to be reported to the California DMV within 10 days if death or injury results. Moreover, such a report is also required to be filed if the accident caused in excess of $1,000 in property damage.
When in Doubt, Check Your Auto Insurance Policy
Some auto insurers have stiff penalties for those who fail to report accidents or delay the reporting of accidents. Such penalties include a denial of the eventual claim or even the cancellation of your auto insurance policy. However, there might be an exception. If the crash occurred in your automobile while on your property and no injuries occurred or if the damage is strictly to your property, your insurer might not require that it be reported.
As an example, if you back your vehicle into your home’s closed garage door and suffer a fender bender without injury, your insurer will likely permit you to handle the matter on your own without filing a report.
There is also the potential that your auto insurance policy has accident forgiveness. Accident forgiveness allows for the rate with the current insurance provider to remain the same after an initial at-fault collision. If you have such accident forgiveness, it might make sense to connect with your auto insurer to file a claim, as doing so will not hike the monthly premium.
Consider the Potential Requirement to Disclose Auto Accidents
If you are still on the fence as to whether it is in your interest to report a minor accident, consider the long-term implications. When obtaining an auto insurance quote, it is typically required that you disclose recent accidents.
If there is an open claim, a pending claim, or a history of claims, it might be difficult to obtain auto insurance with a new insurer. Moreover, a claim or several claims might also jeopardize eligibility to obtain coverage for accident forgiveness with another insurer for several years.
Frequently Asked Questions
Q: What should I do after a car crash?
A: Seek medical attention for injury treatment. Unless the damage is minor such as a fender bender, it is prudent to report it to the insurance company. Exchange contact information and auto insurance information with the other driver.
Q: Can I “work things out” with the other driver?
A: In general, it is a bad idea to cut a deal with the other driver. The other driver might not provide compensation as promised. Moreover, the other driver might provide fake contact information. There is also a chance your injuries will not fully manifest for days or even a week after the accident. When in doubt, do the smart thing by reporting the accident to your auto insurer.
Q: Are there any penalties for failing to report an accident?
A: Yes. If your auto insurer finds out about an accident that went unreported, you might be denied insurance moving forward. Your auto insurance premiums also have the potential to increase if your policy remains active.
Q: Should I contact the police after an auto accident?
A: Yes. However, if the accident is minor, such as a small dent or fender bender, reporting it might be a waste of time. Though there is no guarantee the police will show up at your accident site, most will honor your call and create a vehicle accident report.
Q: Do I need a personal injury attorney after a car accident?
A: Yes. The only exception is with minor accidents in which you did not suffer an injury and there is minimal damage to your vehicle. The first call you make after the collision should be to an emergency medical provider. The next call should be to the police. The third most important call to make is the one to an experienced personal injury attorney.
A savvy car accident lawyer will maximize the value of your claim, interact with the insurance provider on your behalf, and fiercely advocate for you in a court of law. Your personal injury attorney will also engage in settlement discussions to ensure you receive fair financial compensation for your pain, suffering, medical bills, vehicle damage, and other causally related losses.
Contact Gomez Trial Attorneys
If you’ve been in a car accident, contact Gomez Trial Lawyers today for a free consultation. Reach out to us at 866-TRIAL LAW (866-874-2552) or by contacting us online.