Expert: Anne - 10/4/2008

Question
If you are in an accident and a pedestrian is involved and there are only minor injuries but a police report filed and you call your insurance agent and report it. Is it possible to settle with the pedestrian, who was not at fault, after the insurance company knows about it and avoid having your rates go up? If it is, how do you protect yourself from future claims?

Answer
Hello Hope,

Well, you can settle on your own, however, insurance companies already know that you hit a pedestrian and that you are at fault. They will use this information to assess your premium. The fact that you settled does not mean that you are a “more” at risk driver.

Some insurance companies take into account the fact that you paid them back or settled on your own, however, most will argue that you are potentially at risk of a law suit and the exposure to this risk should increase your rates.

Chances are that your insurance company will raise your premium anyway. If you have your insurance company settle, they will be able to acquire all the documents you need to make sure your settlement is “bullet proof.” Insurance adjusters do this for a living and they know the regulations of your state to protect you there. For more information, visit:

http://www.auto-insurance-claim-advice.com/when-not-to-file-an-auto-insurance.ht...

I hope this helps

Anne