First off, anyone that does not report the accidents and damages to their respective insurance companies are going against their duly signed contracts and policy agreements. One may not inform one’s insurance company for the worry of their premium increasing and may opt for higher deductibles. But on a careful and logical introspection, it can be noted that the cost made in order to avoid higher deductibles can be greater than if the premium had been increased (resulting by making a claim).

Secondly, if in an unfortunate accident both the drivers agreed to settle the matter on their own without informing their insurers, then there could be chances of feud or regret. In the sense, one of the drivers might have second thoughts later on realizing that the damages would cost them beyond their budget.

So ultimately, deciding to approach their insurers in the end, and subsequently filing a lawsuit against the other driver.

Now, at this certain time the other driver will not be able to approach their insurers. Their insurance company will not handle or take the case as it had not been reported at the stipulated time and had also violated the policy agreements by not reporting the incident immediately. So, at the end, the other driver will end up being in liability and will be made to pay for the damages claimed.

Of course, there are situations where there had been no third-party involvement, where there was only one driver with damage to one’s own car or with no major damages and injury to the person themselves. In this case, informing to the insurance company may not be that necessary at all since there is no damage, injury, and no liability.

Having said that, anyone making a haste decision to not inform the insurance company about accidents and damages to the car is not conceived as a wise notion, for it can have potential consequences later with the insurance policy and the account box.