Expert: Bennie719 - 5/2/2008

Question
About two weeks ago I had an accident in which I backed up into a light pole in a parking lot. I went and had the damage immediately appraised, which came to a staggering total of $4k. I did not inform my insurance company for fear they would raise my rates, I have a "Safe Driver" discount and any claims or tickets will remove it. I'm chaning insurance from State Farm to Allstate as of the 15th and was wondering if I try to file a claim with State Farm before that time will there be any repurcussions? Or, if they will even accept the claim since I did not inform them immediately?

Answer
Hi Zac,
Insurance companies have a legal right to deny a clam based on a 'delayed report'.
They prefer to have a report within 10 days, however, there will never be a problem if you report the claim within 30 days.

In view of the recent major fault accident, you may want to seriously reconsider your decision to switch insurance companies.
If you tell Allstate of the loss, it may cause them to be unwilling to insure you or to write a policy at a much higher price than you have been quoted.

If you fail to tell Allstate of the fault loss, they will learn during the 59 day underwriting period following the effective date of their new policy and will cancel your policy.

Finding a new insurance company after a fault accident AND a cancellation on your record will be tremendously expensive.

You will probably be many dollars ahead by staying with State Farm.

I hope that you find this information useful.
Your feedback by rating my answer will be appreciated.

Sincerely,
Bennie
San Francisco Bay Area