Frequently Asked Questions

If you have recently suffered a car accident, the last thing you want to do is report it to the company where you are trying to purchase auto insurance. Many people fail to disclose accidents to their insurance company because they know they will either be denied coverage or charged a higher premium.

Most insurance companies will eventually discover the truth, whether or not you disclose it. If the insurance company finds out you have hidden the truth about a car accident, you will most likely be refused insurance coverage. If you honestly forgot to mention an important detail regarding an accident, be sure to inform your insurance company right away.

If you are shopping around for auto insurance, you need to inform all prospective companies of a variety of information. This includes accidents in which you were involved, regardless of who was at fault. You also need to disclose any past claims that you have made to other insurance companies, if applicable. Driving record infractions should also be reported.

Research indicates that 20% of individuals who have purchased a personal or commercial insurance policy fail to disclose previous accidents. Although some omissions are not intentional, the majority of applicants hide this information because they don’t believe their insurance company will take the time to actually substantiate their records. Some people honestly forget to disclose minor accidents, and sometimes the insurance company itself will fail to record the relevant information. Your insurance agent may forget to inquire about your prior accident history, so you may not remember that you need to give this information.

You can suffer serious consequences if you fail to report any past claims. Some people try to hide this kind of information so they are not refused coverage or charged a higher premium. However, the situation could be a tricky one if the insurance company ever finds out about prior accidents in which they have been involved. Applicants are asked to disclose information regarding prior claims or accidents, and insurance companies actually verify the information you provide. They will often refuse you auto insurance if they discover that you have intentionally concealed relevant information.

Failing to report this type of information also has moral consequences by affecting other drivers. Drivers who have submitted at-fault claims are charged higher rates, whereas people who have withheld this information end up paying much less. This is obviously not a fair scenario, and is yet another reason why it’s essential to report any accidents or previous claims.