If you’ve only gotten into a small fender bender and not a serious car accident, you may be wondering whether it’s really necessary to call the insurance company or not. You may be worried that they will increase your premiums, even if it wasn’t your fault.

Whether you’re worried or not, you should always make a point of filing a report with the insurance company.

Here are some good reasons why:

1. You cannot be sure what the other person is going to do. Another person might act friendly at the scene of the accident and suggest that you settle things privately in order to keep the insurance premiums down. The person may seem trustworthy, but they may end up calling the insurance company anyway. This will make it look like your fault and will not work in your favor. The best thing to do is inform both parties’ insurance companies of the facts of the accident and let the insurance company determine fault.

2. You want to get the money you deserve. At the scene of the accident, you may not know how much repairs will cost. If you make an agreement with the other person, you cannot be sure that they will follow through on their promise. They may balk at the high cost or be unable to afford it. The insurance company will pay you the money that you are owed.

3. Damages are not always obvious. Things may look fine to the naked eye, but there could be internal damage to your car. Only a mechanic will be able to tell you this and give you an accurate
estimate of how much it will cost to fix your car.

4. You may be eligible for diminished value compensation. If your car has been in an accident, it will be worth less when you try to sell it, even if it looks like it’s brand new. Insurance companies
should pay you the cost of this diminished value, which could be thousands of dollars.

While most people will agree that the insurance companies should be called when there’s been an accident, you’ll occasionally meet someone that resists this idea. This is usually because they are at fault and are worried about what will happen to them. Don’t let this person bully you into not calling the insurance company, even if the person is offering you a cash settlement. It’s always in your best interest to follow the rules and do things the right way.

Shannon Tani
Researcher/Writer