An accident is a very traumatic experience to go through, and becomes even more distressing if someone is seriously hurt, and the process of filing an insurance claim is so tedious that it makes this seem even more troublesome than it might actually be. Data says that the standard car owner is spending more and more annually to keep their car insured. This is a consequence of the rising cost of car insurance, and if you have had a small accident then you possibly think about not filing a claim - particularly if someone else is not concerned - as you might be frightened of your premiums going up. However, you should never overlook the fact that insurance is for your safeguard and security, and so you must file a complaint as this is economically a smart thing to do. After you file a claim, several things happen. Someone assigned to your case will talk to you and ascertain what actually happened. The driver of the other vehicle involved in the accident will also be called to confirm their side of the story. They will look at police reports and both cars, before helping you get your car repaired. After the claim has been processed, depending on whether or not you were at fault, your premium could go up or you could completely lose coverage. Here are some things that you need to know in order to have a better understanding of the system. Firstly, the insurance company cannot annul your policy unless you have not paid the premium, you lied while filling out the insurance application, or your license is revoked or suspended. If a policy has been in effect for longer than 60 days, it cannot be annulled unless one of these three things takes place. Insurance companies can, on the other hand, decide not to renew a policy after your term with them ends. If you have had many accidents in the past year, your company may decide not to renew your policy. To stay away from this, check with the company you are buying insurance from about their policies prior to signing the agreement. You should know what their policy for cancellations is, so that you are not trapped out at a later time. Understand the contract you are signing carefully, and make sure you investigate companies online to establish that you are signing with one that gets a high rating in customer satisfaction. Typically, companies will not drop your policy for just one tiny accident. For the most part policies are renewed as it makes fiscal sense for the company to keep their clientele with them. There are very exceptional cases where the company chooses to withdraw their contract with their clientele If the accident was caused by you, then expect your insurance premium to increase the next year when you renew your policy. If you go three years without making a claim your rate will be brought down, and vice versa. The information given in this article is sufficient to assist you in deciding whether or not you need to file a claim to your insurance company against an accident or not.