Filing a claim can raise your car insurance rates. It’s good to know a company’s policy on how claims will affect rates before buying insurance, so make sure to ask about the average percentage that rates are raised after a claim. Maybe you think not reporting the accident and paying to have the car repaired out-of-pocket is a better idea. Each state has their own laws regarding when an accident requires reporting, and your insurance policy probably says you must report all accidents promptly. There are some situations where it is better to pay for the repairs yourself. Say you hit a fence on your own property and cause minor damage. By paying for the repair, you won’t have to worry about a rise in premiums. However, if you have the same accident in someone else’s driveway and hit their fence, you should report the accident. The person may report the collision to their insurance company to have their fence replaced, and your insurance company could find out you never reported the incident. Regardless of the situation, you should report accidents to your insurance company in accordance with your policy and your state laws.