What Happens If You Don't Tell Your Insurance Company About An Accident | Staver Accident Injury Lawyers (2024)

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What Happens If You Don't Tell Your Insurance Company About An Accident | Staver Accident Injury Lawyers? ›

Consequences of Failing to Notify Your Insurer

Not reporting an accident to your insurance company is a bad idea. You could end up having your policy canceled, and even get accused of the crime of leaving the scene of an accident by the other party.

If you don't tell your insurer about an accident and they somehow find out, you may face legal action, your insurance premium will be certain to rise and you may even struggle to find an insurance provider in future. So it's not a good idea.

When you don't respond to an insurance claim, the insurance company will likely give you the benefit of the doubt at first. They will make multiple attempts to contact you. But if you still don't answer, they can resort to more serious actions.

Under California law, an insurer cannot increase your premiums when you aren't at fault.

Regardless of fault, it is important to call your insurance company and report any accident that involves injuries or property damage. It is a common myth that you needn't contact your insurance company if you aren't at fault.

tell your insurer about the accident straightaway, even if you don't want to make a claim. if someone is injured, show your insurance certificate or cover note to the police.

That said, you'll usually be looking at an increase of 20%-50%. Unless it's protected, you should also expect to lose any no-claims discount you've built up. Even if it's protected you could still see your premiums rise – this is because a no-claims discount is a reduction from a baseline car insurance premium.

In general, it's better to report an accident to your insurance company than not to, especially if another party is involved. But there are some instances where not filing a claim makes more sense.

Insurance companies will deny claims if it determines that coverage has lapsed. There are a few different reasons why insurance coverage may lapse: failure to pay premiums on time, insurer unilaterally canceled the policy, or the insurance company no longer exists.

What happens if you don't respond to a letter of claim? ›

The debtor is obligated by the pre-action protocols to respond to the letter of claim within a reasonable window. If they choose to ignore it, the creditor's solicitor will be able to apply for a court order to force their hand.

If you're not satisfied with the outcome of your dispute, you have the right to sue the insurance company in a court of law. You can use these resources to find legal help. You can also ask for alternative dispute resolution, which uses mediation with a neutral third party to settle disputes outside court.

Insurers Do Not Need to Respond to Demand Letters

However, your attorney will be ready to take action against the company if they refuse to give your claim the attention it deserves. This might be by filing a civil lawsuit against the company if they continue to handle your claim in bad faith.

If you are involved in an at-fault accident, your rate can increase for up to six years because this is how long it can stay on your driving record. Depending on how many accidents you've been involved with, you'll see a 25% to 50% percent increase (or more) in your policy for being at-fault.

The greater the number of claims filed, the greater the likelihood of a rate hike. File too many claims—especially in a very short amount of time—and the insurance company may not renew your policy. If the claim is based on the damage you caused, your rates will almost surely rise.

Whether and how much your insurance may go up after an accident usually depends on the details and specifics of the accident, the severity, and any damages that occurred. You can learn more about how a claim may affect your policy.

Insurance companies use ZIP codes to assess risk and charge more for areas with a higher rate of accidents or car theft. Additionally, your insurance company may refuse to pay your claim if you have an accident while living in a different state without updating your coverage.

The consequences of being found out may include higher premiums, loss of insurance, or fraud charges.

Your insurance company must give you at least 30 days notice before they can cancel your coverage for the reasons stated above. This gives you time to appeal the decision or find new coverage.

This means your insurer must be considerate of your needs. It must communicate fully and honestly with you about the policy it sold you and about rights and duties relating to your claim. In turn, you are legally obligated to be honest and to cooperate with reasonable requests for information relevant to your claim.