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Reporting the Claim

Q.	Who pays my medical bills if the accident was not my fault?
A.	You probably have coverage for medical bills up to a certain amount under your own auto insurance and may also have coverage under your health insurance plan. But if the accident was not your fault, then the insurance on the vehicle that was at fault should ultimately pay your medical bills as well as for your "pain and suffering".
	It is best if the insurance for the other vehicle pays but you should not rely on their willingness to do so in a timely manner. You should report the accident to your own insurance company as soon as practical then follow with the health care provider to make sure they are paid within their normal time frame. If the at fault insurance company drags their feet, you may have to ask your own auto insurance or health insurance company to pay rather than take the risk of the unpaid bills damaging your credit. In such a case, your insurance company will normally recover all or part of the payments from the at fault company.
Q.	Who pays to repair my car if the accident was not my fault?
A.	The advantages of using your own insurance include generally faster service and less inconvenience. With your insurance company, you do not have to prove you were not at fault and you generally have more flexibility in using your preferred body shop. You also are likely to get more preferential treatment in the event of a dispute.
	The disadvantages of using your own company include the need to advance the deductible and the cost of a rental car if not covered by your policy. If you go under your own insurance, your insurance company will try to recover the full amount paid, including your out-of-pocket expenses, from the at fault company. Be aware, however, that these recoveries often take many months and are not always successful.
Q.	Should I report small claims?
A.	If there is an injury or chance of injury, you must report the claim. Failure to report a claim could void your coverage. But if there is no risk of a claim for injury, you should consider the effect of a claim on your rates. At fault accidents almost always count against your driving record and can cause your premiums to increase.
	Say you have a minor accident that is your fault. Imagine there is $600 in damage and you have a $250 deductible. If you report the claim, you will receive $350. But if your rates go up $200 per year for the next three years, you would have been better off paying the $600. Having a ticket, an additional accident, or an inexperienced driver on your policy can increase this effect dramatically. If you are not sure if a claim should be reported, contact us for advice.

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