| There is no stupid car accident out there. They | | | | the person in the other vehicle or even your |
| happen all the time. Yet, thousands of people decline | | | | ownpassenger. It does not matter that the lawsuit is |
| to file an insurance claim because they feel | | | | ludicrous. You will have to defend yourself. Hiring an |
| embarrassed. People also know that filing a claim that | | | | attorney is not cheap, and if you failed to call in the |
| is of "lower"amount will only increase their rates. | | | | claim, then the insurance company will not provide a |
| They decide that it is better to pay out of pocket | | | | defense for you. |
| and call it good. | | | | Do you think there are frivolous lawsuits out there? |
| Is this a good approach? The reasoning is definitely | | | | Yep, everyday, and it just seems like there are |
| sound. However, there are certain things you should | | | | attorneys willing to sue just about everyone. Do not |
| be aware before making this decision. | | | | become their victim for a "stupid car accident", report |
| You have an affirmative duty to report a loss to | | | | the claim. |
| your insurance company. It does not matter that it is | | | | Most of the time calling your agent is not enough. |
| a "stupid car accident" or one with minimal damages. | | | | Make sure you call the actual insurance company |
| Your insurance policy spells out your duty to call in | | | | claims department. Some agents never get around |
| and report what happened. You only have "a | | | | filing a claim. They believe that the claim not a big |
| reasonable" time to call in. What is a reasonable time? | | | | deal and never file. If this occurs, the insurance |
| That is up to debate, but more than twelve months | | | | company could still decline to defend you and you |
| will probably leave you with no coverage. | | | | would have to go after the agents' Error and |
| The repercussions of not filing a claim are severe. | | | | Omissions insurance policy (a big pain you know |
| The insurance company can decline payment for your | | | | where). |
| damages or damages to any third party making | | | | Be aware of some agents out there. Most of them |
| claims against you. If you backed up into your garage | | | | are very good and very honest, but there are some |
| door, then you are safe. However, if you hit a pole, | | | | that will lie to sell you a policy or to discourage your |
| the pole owner can come back and suit you two | | | | form filing a claim. Insurance agents get their cut |
| years later (depending the statute of limitations in | | | | byselling insurance policies. They also get extra |
| your state). If you were more concern with you own | | | | incentives by selling policies that result in no claims. |
| vehicle and declined to at least call the insurance | | | | The agent has vested interest in discouraging you |
| company, then you will have to provide for you own | | | | from filling that stupid car accident. |
| defense. | | | | You can always call the insurance company and |
| Does this happen? Yes it does! People will try to sue | | | | report the claim to protect your coverage. Then you |
| you if they think they can get 5 bucks. Not reporting | | | | can tell them that you will deal the claim yourself. If |
| a stupid car accident can end up costing you a bundle | | | | you truly have a stupid car accident, then your |
| in attorney fees. | | | | claimadjuster will note the claim and then close your |
| In reality the "pole" damage is not a very big concern. | | | | file. Now you will be fully protected even if a frivolous |
| However, if you touch another vehicle, then you | | | | lawsuit ever arises against you. |
| could have a claim for bodily injuries. It could be from | | | | |