Here's Why You Should Always Report a Multi-Car Accident to Your Insurer

After a car accident, there may be times when drivers aren't sure if they should report the collision to their auto insurer or not. Reporting a crash can have undesirable consequences, including an increase in insurance premiums. 

If the collision was a minor one, and especially if the at-fault driver promises to pay personally for any damages out of their savings account, it's tempting to try to avoid the hassle and potential expense. In reality, though, in any multi-vehicle accident, it's always critical to report the collision to an auto insurer. Here are a few reasons why. 

The damages may be more serious than they appear

The biggest reason why it's important to report any multi-vehicle accident to an insurer is because the crash may turn out to have caused more damage than initially expected.

For example, a driver who was in a rear-end crash may assume they just have a minor stiff neck after the accident. But, whiplash symptoms may appear days or even weeks after the accident and sometimes have lasting consequences that require extensive treatment or interfere with the ability to work. Other types of injuries could also have a delayed onset, or what seems like a small medical issue could turn out to be a much bigger one if recovery doesn't occur as planned.

Likewise, a crash that appears to have caused minor property damage could turn out to actually have done serious damage to a car -- perhaps even resulting in the vehicle being totaled if the expenses associated with repairing it turn out to be greater than the market value of the car. 

If an accident turns out to have caused more serious damage than expected, plans to pay for it out of pocket may not come to fruition. The driver who expected to pay the damages might simply not have enough money. And if the crash was not reported to insurance in a timely manner, recovery may be more difficult or even impossible depending on the circumstances. 

Both the victim and the at-fault driver suffer in this situation, as the victim may not get full compensation or the at-fault driver could find themselves being personally sued for damages.

Drivers may not follow through on their promises 

If the crash was caused by another driver and they promise to cover the costs for victims if they don't report it to insurance, the sad reality is that this is a very high risk situation for those impacted.

If the at-fault driver doesn't follow through on their promise to pay -- either because they can't or because the damage is more extensive than expected -- victims may not be able to turn to their own insurance company if the accident wasn't reported. 

Normally, their insurer would help them to recover damages or even pay for their losses through their underinsured or uninsured motorist policy if the driver responsible for the crash had insufficient coverage. But that opportunity may be gone.

There's no reason to ever take a chance on whether a crash is reported or not. Both crash victims and at-fault drivers should alert their respective auto insurance companies right away -- either so they can make sure they get the payment they expect or so they don't find themselves being sued and paying large bills their insurance won't cover.