Let’s say you have a minor fender-bender that results in a few scratches or, if you’re lucky, no damage at all. You and the other party may agree to pay for the damages out of pocket and not get the insurers involved, but this may not be the right way to go for a number of reasons.

While it’s customary and even contractually required by most insurance companies, many people choose not to report minor accidents to their insurers for fear of such claims raising their premiums. Those involved in single-car accidents are most likely to simply put up with minor damage rather than file a claim, while two interested parties may agree to grin and bear it if there’s only very light damage and no injuries.

How reporting an accident affects your premiums depends on your level of fault. Those not at fault won’t see any increases in their rates, but at-fault drivers may see steep premium increases for years. It’s no wonder that many people try to forgo claims for minor or nonexistent damage. However, not reporting the incident to your insurer could land you in hot water.

For starters, the police may transmit a copy of the accident report to your insurer, which could cause steep premium increases or cancellation for failure to report. Not notifying your insurer could also put you at risk of a small claims lawsuit later on, especially if the other party develops injuries related to the accident.

No matter how minor the accident, it’s a good idea to report it to your insurance company. Get in touch with us and speak to an independent agent for expert help when it comes to the claims process and how it may affect your future car insurance rates.