Should I Report a Fender Bender to My Car Insurance Company?

We've all had it happen at one point or another -- in a mall parking lot as you are backing out of a parking space, or when you are in gridlocked bumper to bumper traffic. Not all car accidents result in the wholesale destruction of your beloved automobile. Always remember, however, that any accident you walk away from is a good accident.

Most car accidents, in fact, aren't serious enough to warrant filing a claim with your insurance company.

These incidents are called "fender benders" and yes, it is very annoying that both of those words rhyme. But it does make sense, as a fender bender is a very annoying and stressful event, much like the obnoxiously cutesy term used to describe it.

First off, many people have deductibles of varying amounts as part of their car insurance policy. Raising your deductible is one way of lowering your car insurance premiums so many people have very high deductibles.

But when you do increase your deductible to save money on car insurance you must keep in mind that you will be responsible for that amount once you have an accident. Remember that car accidents always have a way of happening when it is the least convenient for you personally and financially. Keep a rainy day fund squirreled away so you have enough to cover that deductible should the day ever come that you need it.

For example, if you have a $1,000 deductible and back into someone's fender in a parking lot do you think you'll want to make a claim? If the repair bill is less than $1,000 you obviously can't make a claim but if it is a bit more this becomes a bit of a gray area. Why is that? Once you have an accident claim on your insurance record it is pretty likely that you are going to see your premiums increase by a significant amount.

So, is it really worth it to make a claim that will only pay out an additional $500 when you will no doubt be paying that and more in the future for your insurance premiums? That's a question you have to answer yourself and no doubt depends on whether you can pay for the repair out of pocket.

Do be aware that this only applies to accidents where the police are not involved. If a police report is filed your insurance carrier will probably find out and raise your rates anyway if you are the party at fault. If there is any chance you or the driver of the other vehicle might be injured even in the slightest you really need to have the police called out so there is an official record of what happened.

This is also very important if, in the future, the person you rear-ended at 10 miles per hour decides to sue you because the impact was so great they can no longer work. They may have acted fine after the fender bender but many people look at situations like these as easy money making opportunities so always protect yourself.