If you fail to file a claim because you fear that your premium will go up, you could be at risk.

Many people wonder if they should report their car accident, or if they can get away with keeping it off the books. While practices vary from company to company, in general an insurer will increase your auto insurance premium by specific percentages for each chargeable claim made against your policy above a specific dollar amount. The increase of your premium typically lasts for three years following the claim.

On the other hand, the insurance company may decide not to renew your policy if your driving record gets markedly worse, or if you repeatedly are involved in accidents. Again, what makes a bad driving record will vary from company to company. For a bad accident that was caused by you, such as drunk driving, it will often trigger a nonrenewal from virtually every insurance company.

If you are involved in an accident and don’t report it to your insurer, you are taking a risk. Even if the damage seems minor, problems can arise later on. If the other driver was to sue you weeks or months later, your failure to report the incident might cause your insurer to refuse to honor the policy. If they do go ahead with honoring the policy, the insurer will find it difficult to gather evidence to represent you. This can drag the process on for months and end up costing you greatly.

To connect with the top auto insurance carriers, visit Martplan Insurance Agency. We advise you in selecting the right auto insurance for you, so that if you were involved in a car accident, you would be covered. With the best solutions in La Habra, California, contact us today!