Dietrich Law - Should I Pay Privately? - a Legal Minute

When involved in a collision many people feel that they should pay privately in order to avoid increased insurance rates. Is this really the best course of action? It’s complicated. While the law is very clear that you must report a collision to the police if there are personal injuries or property damage to both vehicles combined, in excess of $1 000, deciding that is a judgement call. As well, there may be charges for one or both drivers in terms of breaches of the Highway Traffic Act. You are required under you policy of insurance to then advice your insurer – or broker, if you have one – of the circumstances of the accident so that you do not prejudice your coverage. You might be subject to a claim of the other driver, and if you don’t let your insurer know, you may have problems with them conducting your defence. If a minor accident is your fault, and the other driver has not been injured in any way, you may wish – in consultation with your insurer – to pay for their damages.