Is it illegal to not file a car insurance claim?

Asked by: Beau Jacobs  |  Last update: March 31, 2025
Score: 4.2/5 (5 votes)

There are no laws that require you to notify your insurance company after an accident. However, there is a good chance that your car insurance policy does require that you report any accident and if you fail to do so your insurance company can deny any claims that result from it.

What happens if I don't file an insurance claim?

As a last resort, the insurance company may file a suit against you and get a ruling. You should consider that this procedure can affect your credit rating and your ability to get insured in the future.

What happens if I ignore my insurance claim?

When a claim is left unaddressed, it may lead to the insurance company assuming that you're at fault. This could result in you paying higher amounts than if you had addressed the claim promptly. Not responding to a claim can be seen as a breach of your insurance contract. This can lead to legal actions against you.

Is it illegal to not make an insurance claim?

Illegal, no. But you must follow the law in your state relative to filing an accident report. If there is an injury, you must report to the DMV and police. The smart thing to do if there an injury is to go through your insurance, as you can never predict.

Will my insurance go up if I don't file a claim?

However, car accidents that cause injuries or property damage to other parties should be reported to the insurance company immediately, even if the other party wants to “keep insurance out of it.” Failure to report an accident — or to stay at the scene of an accident — can be a significant legal misstep and could cause ...

Pano gagalawan ang inyong CAR INSURANCE | Comprehensive INSURANCE

34 related questions found

Is it better to not file an insurance claim?

Always file a claim if there's serious property damage or potential injuries. Even if the other driver is honest and the accident was only a fender bender, the damage might be more serious than it appears. Additionally, a car might have hidden damage that won't be found until it's been looked at by a mechanic.

Can I refuse an insurance claim?

You have the right to refuse an insurance company's settlement offer. There is no obligation to accept an offer, and doing so can lead to a less favorable outcome. The offer is merely a proposal; accepting it is a personal choice. There is a common misconception that you cannot deny a settlement offer from the insurer.

Can I report an accident without filing a claim?

You are not required to file an insurance claim after an accident, but you may need to file a police report. Not filing a claim can be risky, especially if there are any physical injuries involved that may result in a lawsuit.

Is it better to pay out of pocket or claim car insurance?

If the repair costs are less than your deductible (or even slightly more) you should pay for the repairs out of pocket. For example, if the damage to your car costs $300 to fix, and your deductible is $200, you would save $100 by filing a claim.

Should I file an insurance claim for bumper damage?

It may not make sense to file a claim if the bumper damage is minor and the repair cost is lower than your auto insurance deductible. If you have a low deductible, it may be worthwhile to file a claim, even for minor repairs.

Can you decline a car insurance claim?

You can reject an insurance settlement offer if you believe it is inadequate to cover your losses. When you decline an offer from an insurance company, it is an opportunity to commence settlement negotiations.

What happens if you don't tell your insurance about an accident?

There is no California law per se about notifying your insurance company after a collision, but your auto insurance policy is a contract. When you signed it, you agreed to the stipulations in the contract, which will almost certainly include the requirement to notify the insurance company promptly after an accident.

Do I call the other person's insurance if they hit me?

You do likely have to talk to your own insurance company as they will need your account of what happened. There is, however, times when speaking to the other driver's insurance company will benefit you and will depend heavily on the specifics of your case.

What happens if you don't respond to a car insurance claim?

Because California's insurance coverage is based on a “fault” system, the individual responsible for the accident can be sued for property damage, medical bills and other related expenses.

Should I file a claim if I'm at fault?

If you damage someone else's vehicle during a significant collision, and you're at fault, you should always file a claim.

Does your insurance go up if someone hits you?

If you are involved in an accident and file a claim, even if it was not your fault, your insurance company may see you as a higher risk to insure and increase your rates. Consider speaking with a licensed insurance agent to see how much insurance could increase after an accident where you're not at fault.

Can I just keep the money from an insurance claim?

You definitely can keep the money and not repair it, but you may have received less than you entitled to. The adjuster only pays the visible damage he sees on the outside, and any internal damage will need to be filed a secondary to get reimbursed.

Will insurance companies call the police?

Insurance companies have a dedicated special investigation unit to look for fraudulent claims attempting to collect on damages that never occurred or inflate minor damages and treatment expenses. When fraud is strongly suspected, an insurance company can reach out to the police and start a criminal fraud investigation.

Is it illegal to not file an insurance claim?

Insurance policies typically require policyholders to promptly report any accidents as a condition of coverage. Failure to comply with this requirement could result in a denial of coverage, leaving you responsible for the damages and potentially facing legal consequences.

Who gets the insurance check when a car is totaled?

If you own the car outright, you will receive the check. If not, the check goes to the leasing company or the lender, otherwise known as the lien holder. If you owe money on the vehicle, you should notify the lending company that your car has been totaled.

What if I don't agree with my car insurance adjuster?

Dispute the Decision and File a Complaint

You'll present evidence to an independent adjuster, who then makes a binding settlement determination. You can also file a complaint with your state department of insurance. This alerts regulators to improper claim-handling practices.

Should I pay for a car accident out of pocket or let insurance pay?

If the damage to your car is significant or more than the cost of your deductible, it may make sense to file an auto insurance claim with your insurer. If the damage is minimal and the repairs will cost less than your car insurance deductible, then it may not make sense to file a claim.

What should you not say when making an insurance claim?

Eight things NOT to say to an insurance adjuster are:
  1. admitting fault,
  2. anything about your injuries,
  3. anything on the record,
  4. speculating about the crash,
  5. that you do not have a lawyer,
  6. providing unnecessary information,
  7. accepting a settlement, and.
  8. sharing medical records.

Should I go through my insurance or the person who hit me?

If your vehicle received minor damage, it might be worth filing a collision claim with your insurance if the damage costs more than your deductible. If the other driver caused the accident, then you could file a claim with their insurance company instead.