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Auto Insurance Claims/Can insurance create a claim without insured agreement?


QUESTION: My car was hot from the rear. The other car insurance has taken the responsibility for it. However, I saw my insurance has created claim file and then closed because of no costs as indicated. In fact, I have only liability coverage. I cannot file claim with my own insurance. The other car also cannot file a claim against my insurance because it is the other car fault plus the other car has no damage. I called my insurance and asked how they knew the accident. They said it was reported by the public adjuster and the creation of the claim was required by law. I requested my insurance to delete it because it was not requested by the insured. I am afraid it will have effect on my premium though it has been closed without any compensation.  Is it true the insurance should create claim file regardless of the insured reported or not?

ANSWER: It is true that the insurance policy is a contract and most of the time the terms of the contract say that you are required to report accidents to them in a timely manner.  

It normally does not count against you or increase rates if they pay nothing out, especially if it wasn't your fault and if you have had a bunch of other accidents.

Unfortunately, if the accident happened, it happened, and the NICB (National Insurance Crime Bureau), along with ISO (Insurance Services Office) keep and maintain records on almost all member company accidents as a fraud prevention and investigatory aid.

I hope this helps.

Justin Petty

---------- FOLLOW-UP ----------

QUESTION: Thanks for reply. There was a typo in my original question. It should be my car was HIT from the rear. I understand you said the insured should report insurance company about the accident regardless of whose fault. But, reporting means the case must be created even the insured is not qualified for any claim because of having only liability coverage and it is the other car fault? Can you clarify it? In the past, I had seen once the claim was created, there would have a minimum $50 increase at the time of the policy renewal regardless of whose fault. Thank you for your answer.

Yes, reporting means a case is created, AND reporting is required by most contracts, EVEN IF there will never possibly be a payment.  It is for fraud prevention so that a person can't come back later and try to get their damage covered by saying that the damage they have is from something different.  If there is already a record in the database of the accident with a description (as required by the policy), then the insurance company can avoid paying for damages they otherwise would not be liable for.  

I don't know where you saw the $50 minimum, but that is BS.  Maybe there is a company that uses that policy, but that would surprise me.  Each insurance company has it's own underwriting guidelines.  I've been involved in determining them before and have actuaries (mathematicians that run statistics for companies to help them determine what to charge for insurance) as friends.

I hope this helps.  Bottom line, you can't do much about it, and I bet it doesn't affect your rates anyway.  

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Justin Petty


Challenge me! I promise that I will provide you with the most honest answer I can muster, and I will base it on nearly 20 years of complex claims experience. My strength is shooting it straight and seeing through BS. I do not bluff and I can tell when somebody is. I've handled claims in almost every State in the U.S. and adjusted claims and consulted attorneys and CEO's on recovery and special claims tactics for over a decade. I am the founder and President of Petty Details, LLC. We provide the highest quality claim services to insurance companies, attorneys and individuals all exactly in the same way, by paying attention to the details and doing the right thing.


Nearly 20 years of combined claim company management, litigation, all lines adjusting, claim auditing, damage assessment, subrogation, small claims, tort recovery, collection, skip-tracing, tactical investigations, and contribution claim recovery experience across the United States of America.

NASP (National Association of Subrogation Professionals) (Auto Insurance Expert) Diminished Value Appraisers Group (LinkedIn)

10 years experience in writing and developing technical claims correspondence for litigation and unique scenarios at insurance companies and as a consultant to attorneys assisting with legal briefs and research. 42 published articles relating to auto insurance and claims. Self Published e-books entitled "How Much is My Injury Worth" and "Diminished Value - How Do I Get Paid?".

School of hard knocks, 3 years college, NO DEGREE, years of real world experience running a claims service company and adjusting claims for carriers. Speaks English and Spanish, Limited Portuguese & Italian.

Awards and Honors
Platinum Author ( All Lines Adjuster (TX, 1998 - 2008) TX Public Adjuster (2009 - 2011)

Past/Present Clients
State Farm Insurance, Endeavor GA, MileMeter Ins., American Recreational Markets, Gainsco Ins. Co., Safeway Ins., Home State County Mutual Insurance, Old American County Mutual Insurance, FCCI, Farm Bureau, Liberty Mutual, and Pronto General Agency, LTD just to name a few! On top of insurance companies and attorneys, I have personally helped thousands of accident victims with the difficult and stressful process of navigating their claim to a successful resolution.

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