After a car accident, a big concern can be whether or not your car insurance premium will go up after you report the crash to your insurance company. So, many of our readers wonder whether they have to tell their car insurance company about any accident they're involved in. Here's what to know:
- You're almost certainly required to report a car accident to your car insurance company, under the terms of your policy.
- Failing to report the accident to your insurer could expose you to financial risks down the road.
- You're probably also required to report any accident to law enforcement or other authorities, especially if anyone was injured in the crash, depending on the law in your state.
Is It Illegal to Not Report a Car Accident?
You’re most likely in violation of the terms of your car insurance policy agreement if you don’t report a car accident to your car insurance company. That's not a crime, but it could lead to serious complications later on. We'll cover this more in the next section.
What about reporting the car accident to the police or some other authority? It depends on the circumstances of the crash, and the law in the state where you live.
In most states, you’re required to report—to the municipal police department, county sheriff, highway patrol, state police, the department of motor vehicles, or a similar agency, depending on the law—any car accident that involves an injury or a death.
For accidents involving only vehicle damage, most states require drivers to report any crash that resulted in damage is over a certain dollar amount, typically $1,000 or $2,500.
For example, in California, drivers involved in a car accident must make a written report of a crash to local law enforcement or to the California Highway Patrol within 24 hours, if the accident resulted in injuries or death. A car accident must be reported to the California DMV within ten days if:
- it resulted in any injuries or death resulted, or
- it caused more than $1,000 in property damage.
What Are the Consequences of Failing to Report a Car Accident?
On the insurance side, if you fail to report a car accident that might trigger coverage, and the insurer finds out about it, they might try to deny any claim that's eventually made, or even cancel your coverage.
If you're left without insurance coverage after a car accident, that means you could be on the financial hook for crash-related losses—maybe just your own, and maybe other people's too, depending on the circumstances of the accident and who was at fault.
If you don't fulfill your obligations to report a car accident to the proper authorities, you'll almost certainly face possible fines and administrative penalties like driver's license or vehicle registration suspension.
There’s a big difference between failing to fulfill your legal obligations to report an accident, and failing to stop at the scene. The latter (failing to stop) could be considered a “hit and run” and could result in serious criminal charges, especially if anyone was hurt or killed in the crash.
Can I Still File an Insurance Claim If I Didn't Report the Accident Right Away?
First, the fine print of your car insurance policy probably contains a provision that requires you to promptly report all accidents to the insurance company. So, your failure to report an accident could jeopardize your right to coverage.
As we touched on above, if you don't report a car accident to your insurance company for some time, the company might try to:
- deny any claim that ends up being made under the policy (by you or by anyone else) if the company's ability to investigate the accident and properly handle the claim is impacted by your delay in reporting the crash, or
- cancel your policy.
Let's say that, after a car accident, you and the other driver agree to work out a settlement that sidesteps both of your insurers. But a few weeks later the other driver has a change of heart—to go along with some newly discovered car accident injuries—and decides to file a personal injury lawsuit against you.
In that situation, your insurance company might refuse to defend the suit on your behalf, on the basis that you failed to meet your contractual obligation to promptly report the accident to them. If that happens, you'll be personally exposed to liability for the other driver's damages. (Learn more about recoverable damages in a car accident case.)
Your car insurance premium might go up even if you didn't cause the accident, but some car insurance companies won't increase your premium after your first accident if you otherwise have a clean record. So, it's usually a good idea to explore these scenarios with your insurance agent when obtaining or renewing your policy, in order to minimize your accident-related costs and exposure.
Is a Lawsuit Possible If I Don't Report a Car Accident to My Insurance?
Another way of posing this question is, "Were you the only one involved in the accident?" The risks that come with not reporting an accident to your insurance company are far greater when another person or another vehicle is involved. (Think of the scenario where, a week after the crash, the other driver decides that she actually is injured.)
When you're the only driver and the only damage from the accident is to your own property—maybe you backed into a tree—you'll have no concerns about someone else suing you for injuries or property damage. If you're uninjured, and the damage to your vehicle or property is minimal (maybe a scratched bumper) you're probably safe not reporting the accident to your insurance company. In these cases, you'll likely be able to repair the damage for much less than the cost of your deductible, or you might just decide to forego the repairs altogether.
But in any situation, the decision not to report an accident to your insurance company should not be made hastily, as it can have serious consequences under your insurance policy as well as your pocketbook. Learn more about how insurance affects a car accident case.
Next Steps After a Car Accident
If you didn't report a car accident to your insurance company, and now it looks like you or someone else needs to make a claim under your policy, you can always try:
- contacting the insurance company
- explaining what happened, including your reasons for not reporting the crash right away, and
- doing everything you can to help the insurance company (belatedly) investigate the accident and the resulting losses.
In some situations, especially if the delay in reporting the crash hasn't jeopardized the company's ability to respond to a claim, you might still be entitled to coverage under your policy.
If the accident ended up resulting in significant injuries or property damage, it might be worth it to discuss your situation (and your options) with an experienced legal professional. Learn more about when you may need a car accident lawyer. You can use the features on this page to connect with an injury attorney in your area.