Even the best drivers get in occasional fender benders. In fact, over the course of your life, you will probably be involved in several. So, do we run and report it to the insurance company every time? Obviously, the first thing that we want to make sure of is that nobody is injured seriously. After that's established, we often ask ourselves the following questions:

• Should I call the police and my insurance company?
• Will my insurance rates increase?
• Will I get points on my driving record?
• The other party is offering me a cash settlement, should I accept?
• Do I really want to go through all of the hassles of insurance claims, police reports, adjusters and more?

And many times, people decide not to inform their insurance company or the police about the fender-bender. If you find yourself in the position to make that decision, consider the following as well:

• What if the other person involved doesn't hold up their end of the agreement?
• What if you have an injury that is not presently evident?
• What if you miscalculate the amount of damages that your vehicle has incurred?
• What if there is structural damage to the frame of your vehicle that you are unaware of?

Remember that repair bills for vehicles rarely fail to surprise. You need to develop an accurate representation of when it would be financially advantageous to pay for the repairs out of pocket. How much will the repairs cost? What is the realistic amount that your insurance premiums would increase - and how long would it take you to meet the point of diminishing returns?

There also ethical considerations at hand. According to the small print on your insurance policy, by signing it, you most likely have agreed to inform your insurance company of any circumstances that would cause them to increase your rates. Of course, many people do not do this. The reason is because over the course of years, a couple of hundred extra dollars spent on automobile insurance annually can lead to several thousands of dollars spent. So for many, mum's the word in the event of a minor crash.

The best advice is to be prepared and know your course of action before you are actually involved in a fender bender. Here's how:

• Find out upfront from your insurance company agent how much your insurance premiums will increase in the event that you file an at-fault claim.
• Make sure that you understand your insurance company's policy for accident forgiveness. Most likely, you will find that your insurer offers absolution from your first crash - for a small additional fee, of course.
• Make sure you take the time to read that small print on your policy. Understand your policy's specifics for reporting fender benders and other minor incidents.
• To make sure you're properly prepared, keep an accident kit in your vehicle with a disposable camera, first aid kit, a printout of your contact information and insurance company contact - and a notebook with writing utensil.

When it comes down to it, whether or not to report a fender-bender can be risky either way. But risk is what insurance is all about. The choice is yours alone to make.