Do Both Parties Need to Report to Insurance After a Car Accident?
2 Answers
After a traffic accident occurs, it is not necessary for both parties to call their insurance companies. Only the party that has purchased relevant vehicle insurance needs to contact their insurer. Additionally, not all parties involved in a traffic accident may be motor vehicles; therefore, non-motorized vehicles and pedestrians do not have the option to contact an insurance company. For the motor vehicle party that has purchased insurance, it is essential to contact the insurance company immediately after the accident. This allows the insurance personnel to conduct on-site inspections, assess damages, and facilitate subsequent claims. Moreover, in a traffic accident where the other party is fully at fault, our side does not need to report to the insurance company, as the compensation will be covered by the other party's third-party liability insurance. However, if the other party has severe injuries, our side may need to report to the insurance company because, under compulsory traffic insurance, the non-liable party is also required to compensate for the medical expenses and other losses of the at-fault party's injured. Typically, there are two scenarios where the incident does not fall under insurance liability: One is when the incident is not covered by the "insurance liability" clause specified in the insurance policy. The other is when the incident falls under the "exclusion of liability" clause in the insurance policy. For example, in personal accident insurance, if the insured is involved in a car accident but was driving without a license, this would fall under the "exclusion of liability" clause, meaning it is an excluded liability, and the insurance company has the right to refuse compensation based on the policy terms.
When I first got my driver's license and my car got hit, I was so nervous that I immediately asked my friend if both parties should report it to the insurance. He said absolutely yes—it's standard procedure, and even minor incidents shouldn't be skipped. The insurance company's job is to handle accidents; after both parties report it, they'll pull records, review footage, and determine liability percentages to ensure fair claims. For example, if the other party is fully at fault but you don’t report it, you might struggle to get compensation, whereas if they don’t report it, you could end up taking the blame. More importantly, exchanging contact info, license plate numbers, and taking photos at the scene is crucial—this ensures complete documentation for the claim and avoids delays. After an accident, keep all receipts and evidence; the insurance adjuster will handle the compensation process, preventing issues from private settlements. Overall, reporting to insurance isn’t just about money—it protects your rights and ensures everything is handled legally. I’ve followed this approach in similar situations, and it’s saved me a lot of hassle.
