Your auto insurance company will remind you that it is absolutely necessary that you report all car accidents to them and to the authorities. However, is it always wise to do so?
Accident under $1, 000 without Injuries
Authorities will not require you to report car accidents that have a total damage of only $1000 for both vehicles. You are free to have it settled between the two of you. Nevertheless, if it involves personal injury then there is no argumentative reason why you should not put it into records.
Should I report it to my insurance company?
Even the minutest of accident incurred through your policy can be considered a blemish on your insurance report. It will reflect on your records for six years and it may be used by car insurance providers to increase your premiums.
Accident over $1,000 without injuries
Any accident with total damages that amounts to $1,001 has to be reported to the authorities. It is to your prerogative, especially if the other party offers cash payment in exchange for it not being reported to the insurance provider and the authorities, but it is a risk you should be willing to take. There is no assurance he will indeed pay the remainder of the repair and damages incurred on your vehicle. Moreover, you may be letting someone go and risking the lives of other drivers from his reckless driving.
Accident with injuries
Any car accident that involves personal injuries has to be reported to the police station. It becomes more than an issue of who is liable to pay for all the damages because a person’s life has been placed at great risk because of someone’s irresponsibility. Be sure to report this, otherwise tables can be turned against you especially if the other party reports to the authorities that you left the scene of the crime.