Car insurance claims guide: How does an accident affect my next premium?
Insurance can be difficult to navigate due to non-fault insurance, no-claims bonus and driver responsibilities. This guide provides information on what to do if you are in an accident. It also explains what options you have with your Car insurance claims to determine if you should file a claim.
What’s the difference in non-fault and at fault car insurance claims?
Non-fault claim
If someone else is responsible for the accident, a non-fault claim can be filed. You are hit by a fellow motorist.
Your insurance provider will seek to recover from the responsible party the costs of any repairs made to your vehicle. Once the claim is closed, it will be added to your insurance history as a “non-fault” claim.
Claim of at-fault
If you’re at fault for an incident, an at-fault claim on your auto insurance will be filed.
This can also happen when your insurance provider fails or is unable to recover any repair costs incurred from a third-party.
Do I need to inform my insurance provider about my accident
Even if your vehicle is not in danger, it’s important to inform your insurance provider as soon as possible.
Let your provider know that this information is for informational purposes only and that you do not wish to file a claim. They should also inform you that they will not attempt to settle with the insurer of the other party without your permission.
If you apply for a new policy you will be required to list all past accidents as a driver in the last five years. This includes whether or not you were at fault.
This includes accidents while driving a company vehicle and those for which you have not made a claim.
Did you know that we offer temporary car coverage if you are looking to rent a car for a limited time?
We offer specialist learner drivers insurance starting at 1 day and ending up to 5 years.
What happens to my insurance provider if I don’t tell them about any previous car accidents?
Insurance providers perform cross-reference checks to determine if there are any items you have not disclosed.
They could invalidate your policy if they find a nondisclosure.
Does it make sense to declare non-fault claims?
You should disclose all non-fault claims to your insurance company. These claims are recorded in databases such as the Claims and Underwriting Exchange. Providers can cross-check them.
How does a claim affect my next car insurance policy premium?
A large portion of your premium is determined by the likelihood that you will be involved in an accident in a future.
If someone has a history of claims, they will need to pay more for coverage even if they have the no-claims benefit. This is because their past suggests that they are more likely make another claim.
Your insurance provider will be responsible for any repair costs once a claim has been made.
If your claim is not your fault, but your insurer fails to collect the full amount, your premium will probably increase.
- Why has my car insurance increased?
- What to do in the aftermath of a car crash
- Is it necessary to pay the excess in a non-fault case?
Your excess will generally be due regardless of whether you are at fault. You may not be required to pay the excess if third parties file a claim.
You can waive your excess if the third-party insurance admits liability. You should always check your policy to verify the provider’s approach.
How does a non-fault claim impact my no-claims discounts?
It’s possible to lose your no-claims discount if you make a claim that is not at fault.
Insurance companies have found that drivers who file non-fault claims are more likely later to be at-fault. Therefore, you will likely see an increase of your premium.
Your no-claims discount if you have insurance will be applied once your premium has been calculated. The increased premium may result in you paying more overall, regardless of whether or not there is a discount.
- No claims discount guide – should I protect my no-claims discount?
- Is it worth adding legal expense insurance to your auto insurance?
- Can I file a claim for car insurance if I haven’t disclosed a prior accident?
Failure to disclose any previous accidents can cause your car insurance claim to be null. Insurance providers cross-reference any information that you may have disclosed with other insurance databases.
You have the right to complain to your provider if you feel your claim was denied. If the complaint is denied, you can complain to your provider.
The Government service can be used for free. All referrals must be made within six month of the insurance provider’s decision. FOS can direct your provider to settle your claim. You may also be paid interest on the claim’s value. The FOS may reject your complaint if they decide that you were involved in deliberate nondisclosure.
Can an accident with a company car still impact my personal insurance premium?
Although many people try to avoid telling their insurance providers about an accident in a rental vehicle or company, it could be considered nondisclosure. If your provider finds that you withhold information, your policy might be invalidated.
Honesty is always the best insurance policy. It will guarantee you are fully covered for any future accidents.
How do I check my history of car insurance claims?
The Claims and Underwriting Exchange can help you check the history of your insurance claims. This database includes information about any incidents that were reported, regardless if you filed a claim.
To verify any information held about you, visit the Motor Insurers Bureau. If you feel any information is inaccurate, please contact the MIB (or the insurance provider) who sent it.
What do I have to tell my partner’s insurance company if I make a claim on my own insurance and am named as a driver on theirs?
If you are in an accident and you’re a named driver on another insurance policy, it is best to contact your other provider for details.
