QuestionA car stopped abruptly in front of me and I rear ended the guy. I called my insurance company (geico)the next day and told them about the accident and told them I will call them later for details. Am I obligated by law to call them for details if the other guy does not make any claim?
Kleid (from California)
AnswerHi Kleid,
I will answer your question, of course. But be sure to read my last paragraphs because I intend to discuss a MOST IMPORTANT PROTECTION if you are going to pay off the other driver for property damage you did.
Most of us think that there is this little black book kept by the insurance company and if we get too many marks in it they will raise our rates.
I doubt whether your company is going to punish you for being in an accident UNLESS they have to pay out damages in excess of that which is defined to be an at-fault accident.
In fact, your state insurance commissioner http://www.settlementcentral.com/links.php has likely established a standard threshold that you must exceed for any insurance company to raise your rates (called an at-fault accident). That threshold is usually a monetary figure for the payout required by your negligent conduct.
Here, use my state as an example. Washington has the nation's finest insurance commissioner, Mike Kreidler. Commissioner Kreidler fights for the rights of injured persons against the monied interests of the insurance industry. Anyway, he set the threshold for at-fault designation at $750. Thus, if you cause an accident and the damage your company has to pay for is only $749, IT IS NOT AN AT-FAULT ACCIDENT, and hence they cannot raise your rates.
So the solution is to check out the site of your insurance commissioner http://www.settlementcentral.com/links.php Then, if you want to see how your official compares with the best, take a look at the site of Mike Kreidler, who I believe does a superb job for the citizens http://www.insurance.wa.gov/
As for your question directly: no, there is no requirement whatsoever for you to go and tattle on yourself UNLESS OF COURSE YOU WANT TO INVOKE THE RIGHTS OF YOUR CONTRACT AND HAVE THEM PAY OUT FOR DAMAGES YOU CAUSED. In that case, you have to comply with the notification terms of the policy.
With respect to your accident, you can judge by how hard you hit the other guy as to whether or not his vehicle sustained damages large enough to warrant calling in your insurance company to pay. Sometimes people handle claims on their own and so the insurance is never called in to help.
If you want to deal with this on your own, be SURE THAT WHEN YOU PAY HIM THE PROPERTY DAMAGES MONEY YOU ALSO GET A FULL AND COMPLETE RELEASE AS TO ANY AND ALL CLAIMS, INCLUDING PERSONAL INJURIES, KNOWN AND UNKNOWN. Be sure to add that on to any general release you might have the other guy sign when you pay him your money.
The reason: soft tissue injuries might lay low for a bit and by the time the victim is in sufficient pain, you might have settled the property damage, and THEN you get a notice of a personal injury claim to deal with. Much better to take that out of the mix by making the victim agree that he is getting an omnibus settlement, which includes personal injury.
Best wishes,
Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com
