There isn’t a law in California that says you have to notify your insurance company after an accident.
But that doesn’t mean you shouldn’t tell them.
The typical scenario
Usually, what happens is that you had an accident, or crash, and let’s say it was a minor one. You have some property damage. The person that caused the crash is offering to pay you cash and not involve insurance. Maybe that person doesn’t even have insurance. Maybe you want to not notify the insurance company because they can be a hassle or you are worried that your rates are going to go up.
Dealing directly with the person can seem like a good idea except you can run into a big problem. That person that doesn’t want to involve the insurance company might not actually want to pay. They might have just said that to string you along. Trying to collect from that person is going to be a nightmare. In the meantime, your car is in the shop or being held together with duct tape.
The insurance contract might require you notify the insurance company of a car accident.
And this is where we get to the next problem. Some insurance policies require that you notify them of a crash within a certain period of time. That’s because they want to be able to do their own investigation early on when the evidence and people’s memories are fresh.
If you don’t notify the insurance company within a certain period of time, they may say you breached the contract with them. The insurance company might use to avoid paying to repair your car. So now the person who hit you isn’t paying and the insurance company isn’t paying.
And that is why you probably should tell the insurance company to be safe.
You should also know that California requires you notify the DMV of certain crashes, usually if there are injuries or property damage over a limit.
By the way, the insurance company is not supposed to raise your rates for reporting a crash that is not your fault – but they might do it for some other reason.
