If you want to drive in the United States, you need car insurance. Most if not all states require it. But that’s not the only reason that people get it. In truth, car insurance can be really helpful and can save you finances in case you are unlucky enough to get into in an accident. Since car insurance plays such an important role in the lives of American drivers, many want to know as much as possible about it. One of the most frequently asked questions about auto insurance is a little different. It is: Do insurers report accidents to the DMV?
Usually, insurers don’t report accidents to the Department of Motor Vehicles. Depending on the state of residence, either you or the police are required to file a report with the DMV.
In a lot of states, if you are involved in an accident, you have to send a report to the DMV, no matter who is at fault. This requirement is often subject to a property damage threshold. This threshold dictates which collisions are accidents that require reporting and which are simply fender-benders.
In case someone is injured or killed in the collision, then you definitely have to report the accident to the DMV. It doesn’t matter what state you are in. Most accidents that meet your state’s reporting criteria require the aid of the police or other emergency services. The police are required to make a DMV report. If they can’t do so in a timely manner, the state may require you to submit the report yourself.
But if the accident is not severe and there is no police report, the DMV will not be made aware of the situation. It doesn’t matter if you file a claim with your insurer or not.
When your insurer notifies the DMV
The law requires U.S. drivers to carry a minimum amount of liability insurance. Unfortunately, if your insurance does not meet certain standards, your insurer will notify the DMV. The same goes if you allow your insurance policy to lapse. If your insurer notifies the DMV, it may suspend or revoke your license until you get the necessary insurance.
Your insurer is also required by the law to submit monthly paperwork if you are convicted of a serious driving offense. This is to prove that you carry the minimum necessary insurance.