Auto Insurance Claims: Processing a Claim without Approval, insurance company, thay

Question
A few month's ago I did some minor damage to a car while parked in a
parking lot. Since the damage was minimal, I instructed the lady to
let me know what the estimate was before going through my insurance
since I might just want to pay out of pocket. She informed me of the
cost a few days later. Since it was low, I told her I would cut her a
check for the cost. A day later I heard from my insurance company
letting me know about the claim. I told them that I was paying her out
of pocket and that they did not have my permission to process the
claim. However, as time went by, I never heard from the lady or my
insurance company again.

I thought she dropped it since the damage was so minor, until I
noticed that my insurance went up. When I called to inquire why, they
mentioned the accident. Turns out the claim had been processed -
without my consent. My question is, can they do that?  

Answer
Hi Kristina,

Yes. thay can do that. Anytime a claim is presented to an insurance company they are required to act on it. In order for you to have stopped the process you would have needed to write the lady a check the day she told you the amount and had her sign a release form. Then you could have sent a copy of your check and release form to your insurance company to stop the claim process. Unfortunately, even if you did this the insurance company may have increased your rates anyway. This is because once a claim is reported (even if they do not pay out) they will consider it to be an at-fault event which will increase your premiums.

I hope this helps
Richard Hixenbaugh