I read terms and conditions of a finance agreement and it says that in an event of a loss or accident I must inform them of that. Just out of curiosity, if you’re insured and the insurance takes care of it why do I need to tell them? I thought with hp there’s less obligation

Ethically and morally you should tell them as it can impact on the value of the car in case of cessation of the contract.

Is the damage major or minor?

Have you actually had an "incident"?

or is this just a theoretical question, as I have seen on another forum.