Unless you are very fortunate, there is a fair chance that during a lifetime of driving your car, you are going to be involved in some form of minor insurance “incident” with it. For instance, that could involve your car’s bumper lightly hitting the bumper of another car at a set of traffic lights merely removing a little of the paintwork on both vehicles.
In that situation you may agree to cover, what turns out to be, the minor cost of both car’s bumpers paintwork being touched up rather than make any claim on your car insurance policy with the other innocent party agreeing to do the same.
However, you decide to pick up the phone to your car insurance company just to make them aware of the incident and think nothing more of it. Interestingly, in doing so, you may find that when you receive your car insurance renewal notice that your premium has risen by quite a sum.
Apparently, some insurance companies, having recorded details of the incident, take these sorts of “incidents” into account when assessing your premiums. They even provide this information to a database that is accessible by many other car insurers so that if you do move to another insurance company to get a more competitive deal your new insurance company may take the “incident” information into account.
The insurance companies would argue that if you have been involved in a minor “incident” like the one that we have described above it is quite possible that such a thing could happen again. They certainly have a point.
You should also bear in mind that, when applying for car insurance, you would no doubt be asked if you have been involved in any accidents, claims or losses. You must be honest when responding, as should you not disclose an “incident”, you may find that you have invalidated your policy.
Much as it may “hurt your pocket” you should do the right thing and notify your car insurance provider of any “incident” no matter how minor.