author-img
Written by:
Prachi Singh
Contributing Writer
Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.

Question: A car titled in my name was totaled out.  It was on my father’s insurance policy, and his insurer paid out the accident claim but now says I cannot continue under my father’s policy because I no longer live with him.  When shopping for auto insurance, do I have to report the accident to my new insurance company since the policy was in my father’s name and it will be a different car that I’ll be insuring? 

Answer:  Yes, if you’ve been in an accident and had a claim paid out for your car, then you’ll need to inform any new car insurance company of this incident, even if you were on someone else’s auto insurance policy at the time. 

When applying for your first car insurance policy, you need to disclose any previous accidents and claims. If don’t report the claim when applying for a policy it can cause problems when your new insurance company finds out about it (and they will).

When you apply for a new policy, the insurance company will verify that the information you give is accurate by requesting various reports, including copies of your motor vehicle record (MVR) and property loss report.

If your state’s Department of Motor Vehicles places notations on your driving record for accidents, then your car insurance company will see the incident when they check MVR.  

Even if the accident isn’t listed on your MVR, it doesn’t mean that your new insurer won’t find out about the totaling of your car and resulting claims. When you make a claim after an accident, the insurance companies involved input the claims information into a property loss database called C.L.U.E. (Comprehensive Loss Underwriting Exchange).

This consumer report shows any new insurer information about all claims you filed under any previous insurance policy within the past seven years.

The policy may have been under your father’s name, but you were the one in the accident and the car was titled in your name, so your name should appear on the CLUE report along with information on the type of loss and amount paid for the claim.  

When the insurance company finds out about the accident, there are a few possible outcomes.

The insurance provider might just recalculate your rates and send you a notice to pay an additional premium to keep your policy in force. Or you could receive a cancellation notice if the new information means you wouldn’t have been approved for coverage if they had known upfront.

Giving correct information when shopping for car insurance is important because car insurance companies want a full picture of what type of risk you and your vehicle represent, and so that you can get accurate quotes and find the cheapest car insurance rates.

Laura Longero

Ask the Insurance Expert

Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

Ask the Insurance Expert

John McCormick

Editorial Director

John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

Ask the Insurance Expert

Leslie Kasperowicz

Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

Ask the Insurance Expert

Nupur Gambhir

Managing Editor

Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

Please Enter Valid Question. Min 50 to max 250 characters are allowed. Only (& ? , .) charcters are allowed.
Please Enter Valid Email.
Error: Security check failed
Thank You, Your message has been received. Our team of auto insurance experts typically answers questions within five working days. Note that due to the volume of questions we receive, not all may be answered. Due to technical error, please try again later.
Compare top carriers in your area Get quotes near you!
Please enter valid zip
author image
Contributing Writer

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.