Non-Declaration to Auto Insurance Company New Jersey NJ
Reader’s Question:
My nineteen-year-old son rear-ended someone here in New Jersey, but our car ended up having most of the damage. I had it assessed, and it looks like the repairs will cost more than the blue book amount of the car. I am thinking of not reporting this incident to my insurer since I’m worried they might declare the car totaled and pay the car off with half its current market value. Is this a smart move?
Liz
Trenton, NJ
In most rear-end accidents, the car at the back is almost always declared as the one at fault. And it’s almost safe to assume that if your teenage son did not talk to the other party of the possibility of you shouldering the repairs for his or her car, then you could expect the other party to call your car insurance company. So even if you try to withhold the information about the accident, your insurer will know, anyway. Besides, state laws require that accidents involving five hundred dollars or more in damage be reported to the DMV, and are only given ten-twenty days from the date of the accident to file it. So you would really have no other option but to report the incident.
If you are worried that your car insurance company will declare your car totaled, but you still want to keep it, you can register the car under a salvage certificate with the DMV office there in New Jersey. It is always good to be upfront with your auto insurance company because they will not be very happy about your attempt at keeping the information from them. Even though they may raise your auto insurance premiums for the negative points you gained on your insurance, they are less likely to cancel your policy because you have been diligent with them.
Tags: auto insurance, auto insurance policy, Car Insurance Company, DMV