How Failing to Report an Accident Can Affect Your Insurance

Failing to report an accident can have serious legal consequences, particularly if you are charged with leaving the scene of an accident, the more serious version of the same offense. As dire as the legal repercussions can be, the failure to report a car accident can have an equally deleterious impact on your auto insurance rates. Your auto insurer could raise your car insurance premiums drastically, deny your accident claim if you file one, or drop your car insurance coverage altogether.

The Necessity of a Report

Insurers rely on accident reports as an objective source of information on the sequence of events that led to the accident. As long as you’re telling the truth, an accident report will corroborate your account of the incident and expedite the claims process. The report also provides documented proof that the accident actually occurred, thereby dispelling suspicions of potential insurance fraud.

When to Get an Accident Report

In most states, drivers must report an accident if the incident involved a bodily injury or more than $500 in property damage. Not contacting the proper authorities could lead to a failing to report an accident violation or, even worse, a leaving the scene of an accident charge. As such, it’s best to contact the police in the overwhelming majority of auto accident scenarios. If nothing else, you can request that an officer complete an incident report—a step down from an accident report—to provide documentation of the event to your car insurance company.

Car Insurance Consequences

Failing to report an accident can affect your insurance in three ways. First, your insurance company might increase your rates if you receive a citation. Second, the insurer is very likely to deny any claims you file after an accident that you failed to report in a timely manner. Most auto insurers have a small window after an accident occurs to file a claim, and they may deny coverage if the accident was not properly reported or was not reported on time. In the worst-case scenario, your insurer may cancel your coverage completely if you receive a serious citation, such as leaving the scene of an accident.