Expert: Doctor Settlement - 7/7/2006

Question
I have noticed that it is repeatedly mentioned that all accidents should be reported to insurance company. Is that even if the at fault driver wishes to pay out of pocket for damages?
Won't reporting accidents raise rates even if the insurance company doesn't have to deal with any payment or paperwork? I read somewhwere that some insurance companies will even raise rates just for asking questions like this.
Thanks for your helpful tips.

Answer
Dear "t",

You have received three pieces of bad information.  I do not advocate reporting accidents such as you mentioned.  If the driver at fault and you have made your peace with a money payment, so much the better.  There is no obligation to report anything to anyone.

Offshoot on this private settlement deal: if YOU ARE THE ONE AT FAULT WHO IS DOING THE PAYMENT, THEN MAKE DARN SURE THAT YOU GET A GENERAL RELEASE THAT COVERS BOTH THE PROPERTY DAMAGE AND ALL CLAIMS FOR BODILY INJURY, KNOWN AND UNKNOWN.  

The reason for the above is we have seen the at fault driver pay for the property damage, only to get notice 6 months later that the other side has personal injuries that must now be compensated.

NO, mere reporting of an accident in which you are not at fault will not and cannot cause a raise in your rates.  What if you or your passengers need medical care?  YES, always open up your PIP or MedPay and let your own insurance pay.  They cannot and will not raise your rates for using that for which you have paid.

It is absolutely false that insurance companies can raise your rates for talking to them or asking them questions.  Rate structures are approved and monitored by your state insurance commissioner http://www.settlementcentral.com/links.php

Best Wishes,

Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com