While auto insurance companies insist they want to know about the smallest accident, it's clear that if your deductible is more than the cost of your repairs, you are better served to pay the bill yourself and leave your claim unreported.

There is no law that requires you to report an accident to your insurance company, and you should remember that every time you file a report with your auto insurer, even if the damage is less than your deductible, it goes on your insurance record. Joe Annotti from the National Association of Independent Insurers (NAII) says insurance companies want to know about accidents even when repairs cost less than your deductible so the company is protected against possible fraudulent claims from you. "They want to know in case you file a future claim for damages that really happened in an earlier accident," he says. Annotti says your premiums are affected only when the company pays a claim

Points to consider
So when should you file a claim with your auto insurance? Common sense says if the repairs cost less than your deductible you're better off paying for them on your own and keeping the story to yourself. The wisdom that says take a higher deductible on your insurance to lower your rates extends to this scenario. Take the money you save on the lower rates and deposit it into a savings account. When an accident happens, you'll have the money for repairs even if the cost is slightly more than your deductible.

What the insurance company sees
Once you contact your auto insurer, be prepared to have the information remain in your file and dog you if you change insurance carriers. Auto insurers share information on policyholders' histories. But when the damage is extensive, it's appropriate to take advantage of the insurance you've paid for.

"We're in the business of paying what we owe," Dave Hurst of State Farm says. "If we owe you money for part of your repairs, we'd like to know so we can pay you." State Farm evaluates accidents and physical property damage on a case-by-case basis for potential premium increases. Many insurers, including State Farm, will also grant you one waiver of either a first accident or a first moving violation.

No renewed after one accident Jackie Middleton of New Jersey carried both her home and auto insurance with Allstate for 18 years. In January 2002 her car slid on an icy patch after a heavy snowstorm, slamming into a concrete barrier. Police called to the scene wrote a report of the accident in which nothing about Middleton's driving was faulted.

Middleton filed a claim with Allstate for the damage to her car. The claim was resolved and damage to the car repaired. But in February she received an unexpected notice from Allstate: It was not renewing her auto insurance