What not to tell your insurer after an accident

Everyone knows, or should know, that you should never lie to your insurance company -- that would be fraud -- but what you say and what you do does matter.
Moreover, it could mean the difference between how much of, say, an automobile accident, is covered and what impact it will have on your premium.

"People use the wrong words unknowingly all the time," said Mark Holihan of Mark Holihan Farmer's Insurance Agency. "I just keep asking questions to find out what really happened."

Here are some things to keep in mind when dealing with your insurance company:

1. Never admit fault. Even if it is your fault, don't come out and say it. If you blew the stop sign and rammed into the car that didn't, taking the blame could mean that your insurance is picking up 100% of the claim.

"Let it all get figured out," Holihan said. "If you're moving, even if the other guy hit you, you still have a degree of fault. The insurance companies will determine what that is."

2. Don't give your opinion. More times than not your opinion of a situation is not totally accurate and it could hurt you more than help you. Insure.com cites an example where a client gave a recorded statement about distance and was at fault because the accident could have been avoided given the distance estimate. Always use the words, "in my opinion."

3. Never leave the scene. Even if you're at fault, stay until the police come. The other guy could exaggerate the degree of accident or say you just drove away recklessly and that could lead to more problems down the road. People are more honest when other witnesses are there too.

4. Make sure the other guy gets the ticket. If you're in an accident where the other guy was clearly at fault, make sure the police get it down in writing.
"Your rates may go up if the other party doesn't get the ticket," Holihan said. "It's proof that it wasn't your fault."

5. Report every ailment and medication. Most policies will require at least a urine sample and often a blood test too and those will tell them anything you didn't.
"You can see a lot from those tests," said Vito Deperte, a senior agent at Healthcare Solutions Team. "If you're eating a Big Mac and fries every day, they can see that from your urine test."

6. Avoid using "whiplash" to describe that pain in your neck. Muscle injuries don't show up on X-rays so insurance companies are on alert when people claim they have whiplash.

"Insurance companies know people are trying scam them all the time," Deperte said. "Anyone can say they have whiplash."

Insurance companies have many ways and lots of resources to getting down to the truth and if they think you're not being exactly honest with them, they will go far and wide to prove it.

If they find out you've lied about something, they will enforce the policy to the letter. That means you'll have to prove everything, right down to receipts for that stolen leather jacket -- which you probably no longer have.

"The truth is always the best policy," Holihan said.

Insure.com offers several other tips on what not to do after a car accident:

• Do not give a recorded statement to the other driver's insurance company. It can be used against you later on. You want to control your case and the release of information. Insurance companies must ask you for your permission in order to record an interview.
  
  
• Do not make friendly conversation with the adjuster. Stick to business and only tell them the "who," "what," "when" and "where." Don't even tell them the "how" at this point.
  
  

Source: MarketWatch

PS: The article has been slightly edited to reflect the conditions / situations applicable to Malaysian context.