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What Can Happen If You Do Not Report an Accident to Your Auto Insurance Company?

Some drivers prefer not to report a minor accident, because they want to avoid getting stuck with paying the higher premiums. Still, the consequences for not reporting might be much more severe than the imposition of a higher premiums.

What action might be taken, with respect to the driver’s auto insurance policy?

The insurance company might refuse to renew that same policy. If the driver tried to purchase a policy from a different company, that same company might cancel that new policy, once it had learned about the driver’s previous failure to report an accident. If an insurance company chose to undertake either of those actions, it would need to send the delinquent policy holder a notice, one in which the company’s plans were clearly stated.

Dangers introduced by a risky assumption:

Maybe the driver assumed that there was no extensive damage, and so that same driver felt ready to pay for the repairs. Yet it might later be found that the repair work cost more than expected. In that case, there would be no way to seek any compensation from the insurance company.

Dangers associated with an oral agreement at scene of collision

Sometimes, if the damage is not too great, one driver might ask the other motorist not to report that small accident. Understand that an oral agreement is not a binding agreement. One of the drivers could decide to “change course” and report the collision.

Personal Injury Lawyer in Waterloo knows that whenever a driver reverses a decision, with respect to reporting an accident, that action reduces the amount of time available for an investigation of that same incident. A reduction in the length of the investigation can cause problems for both drivers.

It reduces the amount of time available for gathering evidence. A lowering in the amount of time for gathering evidence can mean the collection of less valuable evidentiary material. When either a plaintiff or a defendant has only a minimal amount of evidentiary material, the same party (plaintiff or defendant) must deal with the fact that his or her chances for winning a fair compensation have been reduced.

All drivers must realize that the obvious damage alone cannot indicate the possible value of a driver’s potential claim. For instance, a driver that suggests that neither party should report a given accident cannot know the medical history of the other motorist. That history might put the same motorist at risk for a serious injury, after feeling the impact of a collision. Asking a female driver to forego the task of reporting a collision invites introduction of another risk. A young female might be pregnant. An injury to the unborn child would certainly add value to what had seemed like a minor incident.