I agree with all of that. However I honestly think that the insurance companies do nothing to help the situation by their stupid over reaction to being notified. I had a guy turn across the back of my car, whilst I was parked, after just 3 weeks ownership of my 220d. I was in Swansea on a three day holiday, this was day one....great!! I was gutted and livid, although the damage was slight. He struck me as an honest type and having exchanged all details he said he would pay for the body shop repairs at Lexus Poole. I phoned my insurance company to advise them of the incident and advised that the other party wanted to settle so there would be no claim as such. I was advising my insurance co in case there a hiccup should occur....you never know! The advisor said this was fine and they would put any claim on hold until my return from holiday. The guy was true to his word and settled the entire bill direct to Lexus in advance of the work being completed. Advised the insurance company and they were fine about it all............until I came to renew my policy about 5 months later. My premium had gone up by more than £200. Why? In the words of Nelly the Elephant.......'if you advise us ( or any insurance company for that matter) of an incident, even if no claim is made, we view you as more likely to make a claim in the near future and the advising of the incident is regarded as a no pay out claim'. This is really quite ridiculous. I complained to the highest level with Nelly..but in reality got nowhere. Took my business elsewhere and had the 'fictitious claim' removed from my records by another insurance company following discussion of the event. I still keep the details of the incident in my documents file. So, yes, you should be honest in my opinion...but don't be surprised if you get screwed over for your honesty while the deceiver walks away laughing.