After a car accident, many drivers wonder: “Can I handle this without involving my insurance company?” While it might seem easier or cheaper to skip the formal process, avoiding an accident claim can lead to legal trouble, financial risk, and insurance policy violations ,especially in South Carolina.
Let’s break down what happens if you don’t use insurance after an accident, when you’re required to, and why “handling it privately” often backfires.
1. Understanding What It Means to “Use Insurance”
Using insurance means filing an auto insurance claim with your provider to cover property damage, bodily injury, or both. Not using it might mean:
- Not informing insurance companies
- Settling privately (a risky handshake deal)
- Skipping accident reports or documentation
But even mutual agreements to keep things “off the books” can break insurance policy rules or state accident laws.
2. Are You Legally Required to Report Every Accident?
Accident reporting requirements vary by state. In South Carolina, you’re legally required to report an accident to law enforcement if:
- Someone is injured or killed
- Property damage exceeds $1,000
- A vehicle is undrivable
Skipping this can lead to license suspension, fines, or even criminal charges. And while notifying the police isn’t the same as telling your insurance company, one often leads to the other.
3. What Happens If You Don’t Use Insurance?
You might think not filing an insurance claim saves you trouble, but here’s what it can actually cost you:
A. Breach of Contract
If your insurance policy requires prompt reporting and you don’t comply, your insurer may:
- Deny future claims
- Cancel your auto insurance policies
- Reject injury-related costs that show up later
B. Civil Liability
The other driver could still sue you. Without insurance coverage, you may be held personally responsible.
C. Accusations of Fraud
Delaying your report can trigger fraud investigations. Misrepresenting accident timing can void your coverage options.
4. Can You Legally Settle Without Insurance?
In minor accidents with no visible injuries or minimal vehicle damage, private settlements may be legal ,but risky.
Why?
- Repair estimates may be inaccurate
- Medical treatment needs may show up days later
- The other driver might change their story
Without an official report or documentation, you may struggle to defend yourself, or get a fair settlement.
5. Penalties for Not Reporting or Using Insurance
Even if it’s not a crime in all cases, failing to follow accident to insurance procedures can lead to:
- Civil fines
- Insurance premiums increases
- Denial of coverage
- Personal liability for vehicle repairs, medical costs, or lawsuits
In South Carolina, driving without proper insurance coverage or ignoring policy limits can also lead to vehicle registration suspension.
6. Should You Avoid Insurance to Keep Rates Low?
Some people skip reporting a minor fender bender thinking it’ll keep their premium rates low. But that tactic can backfire.
Why?
- It may violate your auto insurance policy
- You won’t have the paperwork for a claims process
- You may pay out of pocket for medical bills or collision coverage
- If sued, you’ll have no legal backing
Worse, insurance companies might raise your insurance rates later anyway, especially if they discover a hidden incident.
7. When Are You Required to Use Car Insurance?
You’re generally required to file an accident claim when:
- Someone is injured
- It involves multiple vehicles
- Damage to public property or a third party occurs
- The fault driver is unclear
- Law enforcement files an accident report
Skipping insurance claims in these scenarios can result in major legal options being lost.
8. What If the Other Driver Doesn’t Want to Use Insurance?
If the other party:
- Offers to pay cash
- Refuses to show their insurance card
- Pressures you not to call law enforcement
They may be an Uninsured Driver, have a bad driving record, or fear accident lawsuits.
Even if you’re not the at-fault driver, don’t agree to an accident without insurance ,it could cost you thousands of dollars in repair cost, medical bills, or compensation for damages.
9. Uninsured and Underinsured Motorist Situations
If you’re hit by an uninsured motorist or underinsured motorists, your own uninsured motorist coverage or underinsured motorist coverage must kick in ,but only if you file properly and on time.
Failure to file could leave you paying for:
- Your own injury claim
- Vehicle repairs
- Long-term medical records and treatment
Don’t risk losing your chance at fair compensation due to a delay.
10. Legal Steps to Take After an Accident
Regardless of how you feel about involving your insurer, follow these steps to protect yourself:
- Call the police if injuries or extensive damage occur
- Document the accident scene, license plates, and all evidence
- Exchange insurance details
- Notify your insurer within the required period of time
- Speak with an experienced car accident attorney or Accident Attorneys if you have doubts
Protect Yourself Legally and Financially
At Ted Law Firm, we’ve helped countless accident victims recover after situations where things went wrong, fast. From fender benders to personal injury lawsuits, we understand how a simple decision not to file an accident claim can cause major damage. Trust Ted Law Firm to guide you through life’s most difficult times. We’re committed to your recovery and peace of mind. We proudly represents injured moped riders and their families in Aiken, Charleston, Greenville, Columbia, Myrtle Beach, and Atlanta ,advocating for accident victims across South Carolina and Georgia. When a devastating crash turns your world upside down, you can count on Ted Law Firm to stand by your side and provide the trusted legal support you deserve.
Call us today for a consultation and let’s take the next step together.
Attorney Ted Sink, founder of The Ted Law Firm, is a Yale, Stanford Business School, and Charleston School of Law graduate and former marketing executive who built a 7-figure law practice, earning millions for his clients. With experience in both law and advertising, Ted has been recognized in Forbes, Entrepreneur, and the ABA Journal. He speaks at industry conferences on marketing and law firm management, sharing insights from his unique background to help other firms grow. When not working, Ted enjoys traveling, diving, and dog-sitting golden retrievers.
