When searching for new car insurance, it’s essential to be transparent about your driving history, including any accidents or claims. Even if the accident was covered under someone else’s policy, it’s crucial to disclose it to your new insurer.
Insurance companies rely on various resources to verify your driving record, including motor vehicle records (MVRs) and property loss databases (CLUE). These databases contain information about accidents and claims filed within the past seven years, regardless of whose name the policy was under.
Failing to report an accident could lead to severe consequences, such as:
Premium recalculations: Your insurer may adjust your premiums based on the undisclosed accident, resulting in higher costs.
Additional charges: Some insurers may impose additional fees or surcharges for undisclosed accidents.
Policy cancellation: In extreme cases, your insurance company may cancel your policy for misrepresentation.
Benefits of Transparency
By providing complete and accurate information, you can:
Ensure accurate quotes: Your insurer can accurately assess your risk level and provide you with a fair quote.
Avoid potential issues: Disclosing an accident upfront prevents any surprises or disputes after obtaining coverage.
Maintain a positive relationship: Honesty builds trust with your insurance company, leading to a more positive and cooperative relationship.
When applying for car insurance, it’s always best to err on the side of caution and disclose any prior accidents. By being transparent about your driving history, you can ensure you receive accurate quotes, avoid potential issues, and maintain a positive relationship with your insurance provider.
FAQ: Disclosure of Accidents to New Insurance Companies
Do I have to tell my new insurance company about an accident?
Yes, it is crucial to disclose any prior accidents or claims when applying for car insurance, even if they were covered under someone else’s policy.
Why do I need to disclose accidents?
Insurance companies access motor vehicle records (MVRs) and property loss databases (CLUE) to verify the accuracy of the information provided. The CLUE report discloses claims filed within the past seven years, regardless of whose name the policy was under.
What happens if I don’t disclose an accident?
Failure to report an accident can lead to premium recalculations, additional charges, or even policy cancellation. Insurance companies use this information to assess risk and determine appropriate rates.
How do insurance companies know about my accidents?
Insurance companies access MVRs and CLUE reports to obtain information about claims filed.
What information should I disclose?
When disclosing an accident, provide the following details:
Date and time of the accident
Location of the accident
Description of the accident
Any injuries or property damage involved
Policy number of the insurance policy that covered the accident (if applicable)
