Should You Report a Wisconsin Accident to Insurance Without Using Coverage?

In the hustle and bustle of our modern life, accidents can happen without warning. When you face an unfortunate vehicle incident, the first instinctive response that comes to mind – reporting it immediately to the insurance company. However, there are some circumstances where it may be prudent to reconsider this act. Especially when you do not intend to file a claim or are not planning to use coverage. It’s also crucial to be vigilant when dealing with your insurance company. Because your one improper statement or acknowledging fault can jeopardize your claim. 

As a personal injury lawyer, I advise you not to tell your insurance company after an accident when you do not intend to use coverage. But why should you not inform the insurer or what are those circumstances? Let’s discuss the benefits of not informing your insurance company after a casualty. 

6 Reasons To Avoid Informing Your Insurance Company After An Accident 

Wisconsin law generally requires drivers to report accidents involving significant injury or property damage. But there are situations where notifying your insurance company may not be necessary. If you do not plan on using your coverage, it might be in your best interest to avoid contacting your insurer. Here are eight reasons why:

1. Minor accidents sometimes lead to higher rates

If you have minor, non-injury accidents, reporting them to your insurer can result in increased premiums. Wisconsin law permits insurers to adjust premiums based on risk factors. Insurers often view any accident as a risk factor. Regardless of fault, a single report can be seen as an indicator of higher risk. This can lead to higher rates upon policy renewal. 

2. Out-of-pocket repairs instead of making a claim

If the damage from your accident is minor, it may be less expensive to handle repairs yourself than to involve your insurance company. Wisconsin insurers often apply deductibles and consider any claims when calculating future premiums. If the damage is well below your deductible, it better pay for repairs out-of-pocket. This can help you avoid triggering a claim that may raise your rates in the future.

3. Easy to handle than hassle with insurer

Filing an insurance claim can be a lengthy and frustrating process. You may be required to provide extensive documentation, undergo inspections, and face potential disputes over coverage or fault. Since you’re not planning to use coverage, it can be easier to handle on your own instead of hassling with your insurance company.

4. No visible damage is not worth reporting

In some accidents, there may be no visible damage. If the damage does not exceed $1,000, reporting might not be required. If the accident did not cause any noticeable harm and neither party wishes to make a claim, reporting it could impact your claim history. For example, labeling as a higher-risk driver and increment in premiums.  

5. No fault or involvement of other

If there is no other party or property involved, it’s better not to report it to the insurance company. For instance, you had an accident with a stationary object, and it’s a low-impact collision. Wisconsin follows a "comparative negligence" or “shared fault” standard. So reporting means you have used your coverage where you did not intend to do it. If you are certain the accident is minor and can be resolved privately, it may be better to avoid formal reporting.

6. Deductible may exceed damage

Most auto insurance policies in Wisconsin come with deductibles that range from $250 to $1,000 or more. Though it varies from company to company. If the cost to repair your vehicle is less than your deductible, there won’t be much benefit in filing a claim.

Suppose you have a $500 deductible but the damage to your vehicle is only $300. In this case, paying out-of-pocket would make more sense. Because the repair costs are less than your deductible. Filing a claim wouldn’t help financially and could still increase your future premiums.

7. Risk of Non-Renewal of Policy

Under Wisconsin law, insurance companies can decide not to renew a policy if they consider you a high-risk driver. Filing multiple claims, even for small accidents, may signal to the insurer that you are more likely to cost them money in the future. If your policy is non-renewed, finding affordable coverage elsewhere may become more difficult. 

When Report Is Necessary Even If You Don't Plan to Use Coverage

Above are the situations where you might not need to report to your insurance company; especially when you don't want to use coverage. There are also some circumstances where reporting is essential. Wisconsin law establishes specific requirements for reporting accidents. If you fail to notify your insurer you might face potential legal consequences.

•  State law reporting requirements

In Wisconsin, you are legally obligated to report any accident that results in injury, death, or property damage exceeding $1,000. This includes both accidents involving your vehicle and those involving other parties. Failing to report an accident that meets these criteria could result in penalties or fines.

•  Potential future claims

Even if you do not plan to file a claim immediately, circumstances may change. If you later discover that injuries or damages are more severe than initially assessed, you might want to file a claim. Reporting the accident ensures that you have documentation on record should you need to pursue a claim in the future.

•  Other driver’s insurance

If the other driver is at fault and you plan to pursue a claim against their insurance, your own insurer may need to be involved in the process. They can help facilitate communication. Also, ensure you have the necessary information for filing a claim with the other party's insurance company. Not reporting the accident could complicate this process.

•  Unseen damage 

Sometimes, damage from an accident may not be immediately visible. Structural issues or mechanical problems can surface later, potentially resulting in costly repairs. Reporting the accident allows your insurer to document the incident. It can be crucial if you need to make a claim for any hidden damage later on.

•  Policy requirement 

Many insurance policies contain clauses requiring policyholders to report any accidents, regardless of whether a claim is filed. Not adhering to this requirement could lead to complications with your coverage or even denial of claims in the future. It’s essential to review your policy to understand your obligations.

•  Protect from a fraudulent claim 

Reporting an accident can serve as protection against potential fraudulent claims. If the other party attempts to claim damages or injuries that you believe are unfounded, report it to your insurer. Having your report on file can provide a defense against their allegations. This is particularly important in contested cases where liability may be disputed.

•  Legal liability

If you were at fault in the accident, failing to report it to your insurer may expose you to legal liability. This is especially pertinent if the other driver decides to pursue legal action against you for damages or injuries. Notifying your insurance company ensures you are protected and that they can provide the necessary legal support.

•  Prevent future rate increment 

Reporting the accident may mitigate potential future rate increases. Insurers consider your overall claims history when determining premiums. By promptly reporting an accident, you may show responsibility. This can potentially reduce the impact on your future premiums compared to if the incident is discovered later.

How Milwaukee Legal Pros Can Help 

What you should do after an accident can be overwhelming. It is quite true when dealing with insurance companies. Partnering with an experienced personal injury attorney can make a significant difference. Personal injury Attorneys from Milwaukee Legal Pros specialize in accident claims. Understand how insurers operate and know how to protect clients from unfair practices. We will-

• Conduct a thorough investigation of your accident and gather crucial evidence.

• Assess the full scope of your losses, including future medical care and ongoing costs.

• Identify the at-fault and liable parties, ensuring the proper individuals or entities are held responsible.

• Review the terms of the insurance policies involved to determine available coverage.

• Establish negligence by proving how the responsible party's actions caused the accident.

• Negotiate aggressively with the insurance company to secure a fair settlement.

• File your claim and handle the entire claims process.

• Take your case to court if a lawsuit becomes necessary, advocating for your rights every step of the way.

We offer free case reviews, allowing you to discuss your legal options without any upfront commitment. Insurance companies prioritize their profits, often at the expense of accident victims. But we will make sure you get your compensation properly and fairly. Reach out to Milwaukee Legal Pros today.