Insurance companies will raise your rates if they pay out more than $300 on any claim. But if you have an accident and don't file a police report, you can settle the accident just between the two of you (as long as neither of you get the car insurance company involved). If you file a police report (required in some states) the accident is entered into a database system that the insurance companies can access. Then the insurance company will process the claim and raise your rates. If you are in a minor accident (I've been in too many fender benders just on the streets here in Manhattan), try to resolve it without involving the car insurance company. I'm no insurance agent, but I think it will always save you money. However, if it is a bigger accident don't hesitate to get the car insurance carrier involved. In New York you never know what will happen.