How do you settle an auto accident without an insurance company?
You can settle a car accident without an insurance company, but you should still inform your insurance company. If you choose to settle a car accident claim without insurance, you can avoid an increase in your rates. Filing an auto insurance claim can more than double your auto insurance premiums when you're at fault.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
UPDATED: Jan 9, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jan 9, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Filing an auto insurance claim can more than double your auto insurance premiums when you’re at fault.
- Some individuals choose to settle an accident and pay for damages without notifying their insurer.
- Be sure to check your contract and review your duties as a policyholder before you’re tempted to keep your accident secret.
How do accidents affect your insurance rates?
Before you ever file a claim, you should consider the effect that a single claim could have on your premiums. If you go from an accident-free rating to one with an at-fault accident, your entire risk profile will change.
If you go from an accident-free rating to one with an at-fault accident, your entire risk profile will change.With a riskier classification comes higher premiums. How much your premiums will go up depends on all of your rating factors, your record prior to the accident, and the state that you live in.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
What is the average rate increase following an accident?
Nationwide, the average policyholder will pay about 41 percent more in premium following a single at-fault crash.Considering that the average annual premium for insurance in the U.S. is $841.23 per year, policyholders who pay close to the average rate can expect to pay $345 more throughout the year on premiums for as long as the accident is chargeable.
The increase jumps up to an average of 93 percent when you file two accident claims in the same year.
If you combine accidents with violations or a high-performance vehicle, this premium increase goes up even more.
Is there ever a time where premiums won’t go up after a claim?
Before you’re set on settling a claim without your insurer, you should check to see if your claim would even be chargeable. Not all claims automatically fall into the chargeable bubble.First off, any claim with damage at the threshold designated by the Department of Insurance can’t affect your rates. This threshold is between $500 and $2400 and varies from state to state.If the damage will almost certainly go above the threshold, the next thing to look for is the accident forgiveness component. Drivers who have had clean driving records for years might be forgiven for their first claim.This is a feature that larger and more respected insurance companies offer to drivers who’re eligible.
Know the Risks of Not Filing
When you buy a Personal Auto Policy, you’re agreeing to the terms and conditions written into the policy. You must pay your premiums and fulfill your obligations as a policyholder for your insurer to cover claims.One of your duties as an insured is to notify the insurer within a reasonable amount of time after you have a loss. A reasonable amount of time depends on whether or not you were injured in the accident.
If you don’t file a claim within a window of time that’s deemed reasonable, the insurer has every right to deny your claim.
So, even though you’re not required by law to file a claim for an accident, it can put you in financial hot water if you try to settle the claim on your own and the bills start to get out of hand.You won’t have the insurer to protect you and if the claim goes to court you’ll have to pay for those costs out-of-pocket too.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Scenarios Where Settling an Accident Without Insurance Makes Sense
Putting down the phone and picking up the burden of paying for damages doesn’t always make sense. There are some scenarios, however, that are less risky than others.Here are some signs that you should contemplate your own settlement under the table without involving your insurer:
- You’re in a minor single-car accident with no injuries
- You’ve gotten an estimate from a professional and can cover the costs
- You’re at fault for the collision and you’ve already filed multiple claims
- You know the other party and they are reasonable and fair
- You are confident that you have the money to pay for the repairs you’ve promised to pay for
Signs That You Should Call Your Insurer
You carry high deductibles to ward you off from filing unnecessary claims, but not all claims are manageable on your own.Here are some signs that it’s time to call your insurer:
- There’s extensive damage
- There are injuries (real or fake)
- The other driver will do their own repairs
- Cash is being offered without any estimates
- The driver won’t answer the phone
Steps to Take to Settle the Accident
It can be risky to settle on your own. If you’re convinced that you’re better off settling on your own, here are some tips:
- Collect the name, address and phone number of the driver at the scene
- Take a picture of the license
- Gather the other party’s insurance information for protection
- Get multiple estimates for repairs from a reputable shop
- Ask the party to sign a release of their right to claim once repairs are paid
- Report a claim to the DMV if it exceeds property damage threshold
Not everyone wants to use their insurance when they have a potential claim. If you value low rates, paying for repairs on your own could be a wise choice.Consumers who aren’t happy with their rates should always shop around. Use an online rate comparison tool to see how much you’ll pay and choose an insurance policy that saves your money while protecting your assets.Enter your zip code in our FREE tool below to compare car insurance rates now!
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.