If someone on your insurance gets in an accident but neither party files a police report yet damages are paid will your rates still be affected should you switch to another insurance company.?

It depends if your insurance carrier reports ALL crashes or not. Some insurance companies won't report it to the state if the car isn't totaled. In the past when I have rear ended a car the accident never got reported to the state but it did get reported to a database called CLUE, which is sort of like the credit bureau of car accidents for insurance companies. Sometimes the insurance company won't even report it to CLUE so it may not show up on either source of record at all. Some companies go by your state driving record, some go by CLUE, and some go by both. Also, it depends on how serious the crash was. Did anyone die or get injured, are any vehicles a total loss? ETC.