Why You Should Contact Your Insurance Company After a Minor Accident

It frequently occurs: following a minor auto collision with no injuries and little property damage, the parties involved agree on a settlement without consulting their respective insurance companies and without obtaining the official police report. Unfortunately, this arrangement simply does not work out well far too often.

Experts agree that filing an insurance claim is the only way to ensure that you will be compensated for the damages.

Consider the following incident as a perfect illustration of what was said above.

I was driving down the quiet country road to my house, minding my own business. I was suddenly struck by the force of a crash as another car struck me from behind. I got out of my car to inspect the damage. Unexpectedly, the other driver—the one who had initiated the collision—was a close friend and neighbor of mine.
John apologized while grinning sheepishly.

“I’ll personally take care of the damage, so don’t worry. Don’t let the police or the insurance companies get involved. By doing this, there is no chance of an insurance premium increase, which frequently happens after filing a claim.”

I didn’t think there would be any issue with this arrangement at the time. After all, John and I were neighbors and friends who frequently got together.

Sure, I said in return. “I’ll go along with it if that’s how it works best for you,” she said.
The story did not, unfortunately, have a happy ending. Without considering that there might be a problem, I had the back fender fixed and sent John my receipt.

I was mistaken.

It has been 60 days since the accident, and despite John’s numerous justifications and assurances that payment is on the way, I have not yet received compensation from him.

The aforementioned scenario keeps happening after little collisions.
Be careful, drivers!

Even if the at-fault driver is a friend, neighbor, or a reliable acquaintance, there is never a guarantee that you will receive compensation for the harm they caused.

In the event that the at-fault driver defaults on their financial obligation, it may be too late to provide sufficient proof of damages and who was at fault because of the passage of time.

Additionally, the negligent party might betray your confidence by reporting the collision to their insurance provider. By manipulating the truth and outright lying about injury claims that were never made at the time of the accident, he or she might go even further in the betrayal. Your insurance provider might have to send a sizable payment if this happens. After your insurance company has exhausted its coverage under your policy, it may also file a lawsuit against you and order you to pay the balance of what the court determines to be your debt. Finally, you can expect a painful premium increase.