What is the consequence if an insured does not report an accident timely according to the PAP?

If an insured fails to report an accident promptly according to the terms of a Personal Auto Policy (PAP), the consequence typically involves the denial of coverage for the claim. Timely reporting is crucial as it allows the insurance company to investigate the incident effectively, assess the damages, and gather information while it is still fresh.

Delays in reporting can hinder the insurer's ability to evaluate the claim accurately, leading to complications in determining liability or the extent of damages. Therefore, if the insured does not adhere to the requirement of timely notification, the insurance provider may be justified in denying coverage on the grounds that the delay negatively impacts their ability to handle the claim. This situation emphasizes the importance of prompt communication with the insurer whenever an accident occurs.