There are no stupid car accidents. They happen every day. Many people feel embarrassed and decline to file insurance claims. People also realize that filing a claim of a lower amount will only increase their rates. They decide it is better to pay cash and then call it quits.
Is this a sound approach? This reasoning is sound. There are however some things that you need to know before you make this decision.
Your insurance company has an affirmative obligation to notify you if there is a loss. It doesn’t matter if it was a “stupid auto accident” or one that caused minimal damage. You are required to report the incident as per your insurance policy. Only a reasonable time is allowed to call in. What is “reasonable”? It is open to debate. However, coverage that lasts more than 12 months will likely be cut off.
Not filing a claim can have severe consequences. Your insurance company may decline to pay for damages you have sustained or any damages suffered by third parties. You are safe if you don’t get back up on your garage door. You can sue the pole owner two years after hitting it if the statute of limitations in your particular state is over. If you are more concerned about your vehicle than the insurance company and refuse to call them, you’ll have to take care of your own defense.
Is this possible? Yes! If you think you can get $5, people will sue. You could end up paying a lot of attorney fees for not reporting a car accident.
The “pole” injury is not an issue in reality. If you do touch another vehicle, you may be able to file a claim for bodily injury. You could also be the one causing the injury.
passenger. It doesn’t matter if the lawsuit is absurd. You’ll need to defend yourself. It is expensive to hire an attorney. If you fail to report the claim, the insurance company won’t provide any defense.
Are you concerned about frivolous lawsuits? Yes, every day. It seems that there are lawyers willing to sue almost anyone. Report the claim and don’t become their victim in a “stupid auto accident”.
Usually, calling your agent will not suffice. Call the insurance company claims department. Agents sometimes forget to file a claim. Some agents believe the claim is not important and don’t file. The insurance company may still refuse to protect you if this happens. You would then have to sue the agent’s Error and Obmissions insurance policy (a huge pain you know).
There are many agents out there. While most agents are honest and trustworthy, there are some who will try to sell you insurance or discourage you from filing a claim. By taking a cut of the commissions, insurance agents make their living.
Selling insurance policies. Selling policies that do not result in any claims is another incentive. They have a vested interest to discourage you from filling out that stupid car accident.
To protect your coverage, you can always report the claim to the insurance company. You can then tell them you will handle the claim. Your claim will be denied if you are truly in a car accident.
An adjuster will take note of the claim and close your file. You will now be fully protected, even if you are subject to a frivolous suit.
