If you’ve been in a minor car accident, you have likely wondered if you should report the damage to your auto insurance company or pay for it yourself. If the accident does not involve any other vehicles or someone else’s property, check to see if the repair estimate is less than your deductible. Let’s say you back into the basketball home in your driveway and it causes $800 of damage to your vehicle. You check your insurance policy and learn that your deductible is higher than the damage estimate at $1000. In this scenario, filing a claim may hurt you because the insurance company will not contribute any money to this incident, but your rates may also increase at renewal time. However, if you are involved in a vehicle with another person or hit someone else’s property, you should contact your insurance immediately. Your liability coverage can help pay for any property damage or injuries you are at fault for and your legal defense costs if you are sued up to your policy limits.
Additionally, if you choose not to report the accident to your insurance company and any other party involved decides to make a claim for accident related injuries or damages, your insurer may deny coverage. Consequently, as a general rule of thumb, you’ll want to involve your insurance company if a third-party is involved in the accident to ensure that your best interests are protected.
Whether you are shopping for your first auto insurance policy or are up for renewal, the Adams Insurance & Financial team is ready to assist. Proudly serving Northwest Arkansas, we are happy to offer no-obligation consultations for any interested customers to learn about our insurance services.
