Do the insurance companies raise their rates if an accident is reported but there are no monetary claims?

Question

I was involved in a minor fender bender in a parking lot. A guy backed his car and hit mine. There were no damages but it upsets me that the guy just took off without saying anything. I got his plate #, the make and model of his car. If I report the incident to his insurance company will they raise his premium even though I have no financial claim?

Answer 1

I think then best move would to let your insurance company know about this so you are protected and they have your side of the story.

Jeff had some valid points about rates and "rateable" accidents. This does differ by company and state regulation. I would like to point out that no one here knows your driving history and State Regulations and no one here is using the title “underwriter,” so no one can give you a 100% answer on your rates. I agree that your rates should not(not “will not”) increase.

Back more to your question… If you report this to his company, his company will most likely call him and address this with him directly before closing their file. If he denies this they will take his side and your cause is lost. The adjuster will not call you back because they have no reason to since there was no damage and they will most likely just close their file.

Just to cover everything… The only negative I could see is that if you antagonize him by calling his insurance company, he may say that you hit him and if his damage goes over his deductible his company may pursue you(your insurance company for reimbursement). He can’t prove that you did it, but it will tie up your company’s resources. You can file a police report but it was private property and the other driver could do the same thing. Some companies claims departments back up their policy holder so much that they will pursue their policy holders deductible + the 15 dollars they paid over the deductible knowing they have little potential(spending hundreds) to get money back. If it is not your fault, again your rates “should not “ go up, but it just ties up resources.

I would recommend telling your insurance company so that you are protected. Even if you tell his insurance company, all he has to do is lie and no one will investigate further since there was no damage. His claims department would record the accident as your fault (his companies opinion does not mean anything to you though) and close their file. When his policy comes up for renewal, they will see an accident but most likely not at fault.

Answer 2

My first advice is to find out which company MSAD works for as an insurance adjuster, and then avoid that company like the plague. You pay good money for insurance, and should be treated with respect. In my opinion, she is rude.

You are required to report an accident to your insurance company, even if you don't know the extent of the damage. This protects your rights. If the other driver comes back a year later and sues you for pain and suffering (yes, it happens every day), then you have documentation of the accident. Then, your insurance company can defend you from such frivolous lawsuits.

Your insurance company cannot raise your rates unless you have a "rateable claim" With State Farm, a rateable claim is one in which you were at fault, and the damages exceeded $1000.00. Other insurance companies may have different qualifications. Regardless, the insurance company must file the rules for what constitutes a ratable claim with the State Insurance Commissioner.

Since you were not at fault, and the damage was not over $1000.00, your rates cannot be increased.

Most likely, your insurance agent will note the incident in your file, put a date stamp on it, and then take no further action.

If you want to harass the guy, you might file a police report. The police do not typically respond to parking lot incidents, as they are consider civil offenses and not criminal offenses. Since this was a hit and run, the police can file a report and may confront the offending driver. If the guy has a rap sheet, of doesn't have proof of insurance, they might use this incident as an excuse to arrest him. But then again, if you can't show any damage, the police don't have much to go on. They may not respond.

Bottom line, you should report the damage to your agent. If your agent doesn't return your call, or doesn't take you seriously, get a new agent.

Answer 3

I agree with Jeff C... an adjusters job depends on their company making money. If their insureds are wreck less enough to hit someone and take off... they don't need that person's business.

It would be an unusual call... reporting a claim but no loss. Feel free to tell them up front that you want to report the claim not because you have any loss... "right now"... but because you think this person should not be allowed to get away with _hit and run_!

To address what has been said about adjusters being busy... what easier claim to handle them one requiring almost no action? It's a claim assignment and a quick close.

If the adjuster is good, they will send a "risk alert' to their underwriting dept. for "hit and run". I don't know of a single carrier that would renew this person's policy.

Answer 4

If there were no damages let it go.

Insurance adjusters are busy people. We have way more work than we have hours to do it in.

Wasting our time on your bogus claims takes the adjuster away from people who really do have damage and injuries.

I have claims that involve total fire losses to homes - automobile fatalities - people who are in the hospital for months because of injuries as well as lots of people with soft tissue injuries and cars that are damaged and you want to take me away from people who really need my attention because you want to make the guys rates go up? How selfish can you be?

How about you be thankful that there was no damage and grow up and get over it.

Answer 5

no one here can answer that. If they have no PROOF he was involved in the accident... they will likely not find him at fault for the claim. Since he wont be at fault AND no money is paid out... i highly doubt his rates will increase.

HOWEVER- each company and situation are different. Again- no one on here can give you an accurate answer b/c we know nothing about his company, claim history, etc.

Answer 6

I frequently spend my half an hour to read this blog's posts daily along with a mug of coffee.

Answer 7

If it did no damage to your car .>DO NOT report it... trust me on this one...