Car insurance: What is a non-fault claim?

Despite modern innovations in car safety, car accidents are still a regular occurrence in the UK. Pre-lockdown figures in 2019 showed there were 117,536 road traffic accidents in the UK. In 2020 2.1 million car insurance claims were settled, amounting to £8.3 billion in payouts. These car insurance claims dropped by 19% compared to pre-pandemic levels. Even still, this is a staggering number of claims and a striking number of accidents each year.

However, not all car insurance claims are the same. For example, you could make an at-fault claim where you have acknowledged, or it has been proved, that the accident was your fault. Furthermore, if it has not been possible to trace the other driver, even if they caused the accident, it will count as an at-fault claim. There are also partial fault claims that acknowledge both parties are partly to blame. Then there are also non-fault claims. Non-fault claims recognise that the other person is wholly responsible for the accident.

This article will focus on non-fault claims in particular. It will explain in detail what non-fault claims are and how they affect your insurance premiums.

What are non-fault claims?

You can make a non-fault claim when someone else has caused you to have an accident in a car or any other motor vehicle. For a non-fault claim to be granted, you must be entirely blameless for the accident. Furthermore, your insurance company must be able to trace the person at fault for the accident. Otherwise, it will be recognised as an at-fault claim.

This also is the case in any other scenario where there is no third party to claim against. For example, if you hit an animal or an animal runs into your car, you will still be declared at fault. Or, if someone commits a hit and run on your vehicle, you cannot declare a non-fault accident as your insurer will not be able to trace the driver in order to make a claim.

Will I be charged for a non-fault claim?

Unfortunately, even if it has been proven that you are entirely faultless, you will likely still be negatively affected by a non-fault claim. This is because an insurance provider may take this as a sign that you are more at risk of an accident.

For example, if someone has hit your car while parked, it may indicate that this is a high-risk area to park. If a vehicle collides with you while driving to work, an insurance provider may decide that your everyday commute is more dangerous than first thought. This will lead to an insurance premium increase. A non-fault claim does not affect your no-claims bonus.

However, a non-fault claim will not affect your premiums as much as an at-fault claim. At-fault claims significantly affect a driver’s car insurance policy, and they will be entirely liable for the vehicle damage of the other driver. The insurer recovers the cost of the insurance payout by increasing your insurance costs. You will also lose your no-claims bonus.

Is it worth making a non-fault insurance claim?

As the cost of insurance can go up, even if it has been proven you are not at fault, you may feel it is not even worth making an insurance claim. This is especially enticing if the other driver offers to pay you out of their pocket to keep it from going through the insurance. It would mean your car gets fixed without the insurance price going up. However, this can be risky and is not recommended.

Firstly, you must report any accidents to your insurer, whether it is a severe car accident or a small dent in the bumper. If you do not, it could invalidate your vehicle insurance. For example, if you have a crash further down the line, a mechanic may uncover damage from a previous accident. If your insurance is invalidated they may not pay for the repairs from the more recent accident. Alternatively, they will raise the price of your insurance policy.

There is also the chance that the other driver changes their mind and tells their insurer anyway. When your insurance company is informed, it may look like you are trying to withhold information.

You do not have to make a claim if you believe it is not worth it. For example, it may not be cost-effective to report minor damages. It may be better to make a small payment to a mechanic rather than pay increased insurance costs. Even if you aren’t making a claim, you should still report any accidents. Even still, as you have a risk profile, reporting accidents without making a claim can still increase the cost of insurance.

How do I make a car insurance claim?

If you are unlucky enough to be involved in an accident, you will need to make a car or vehicle insurance claim for any damages. It is best to contact your car insurance provider as soon as possible, at least within 24 hours of the accident. The most popular method for contacting an insurance company is by phone. Some companies even have a branch locator tool to allow you to contact the nearest branch.

This will initiate the car insurance claim, and the insurance representative will guide you through the process – telling you exactly what they need. To expedite the process, you should have information ready to share with them. This includes:

Vehicle registration details (yours and theirs)If you are not the registered owner, you will need to provide the owner’s name and addressThe date and time the accident happenedIf the police are involved in the accident, you should supply crime reference numbersYour insurance policy numberThe names and contact details of anyone that has witnessed the accident, any passengers, and the driverAny photographs of the accident and the damage causedThe precise location of the accident, including the name of the street and road it took place on

How long does it take to settle a vehicle insurance claim?

When you have made a claim, it will stay open for as long as it takes to settle. In some simple cases, where the other motorist has accepted fault, it could be settled in a day. However, more complicated claims can take weeks or months to resolve.

There are several variables that can slow the process. For example, if no one accepts liability for the accident or if they dispute your claims, you will need to wait for the investigation to complete. If there is not enough evidence to quickly conclude the investigation, the settlement will also be delayed.

More severe accidents require more in-depth investigation, so you can expect to wait longer if it is a major incident. You may have to use a courtesy car until it is settled, provided you have this in your policy.

What happens if my car needs to be repaired?

If your car or vehicle needs to be repaired, your insurer may send someone to inspect your vehicle. They may also ask you to get repairs done by one of their approved repairers. Or, they may ask for an estimation of repair costs before getting any work done.

However, if your car needs serious repairs, it may not be financially viable to fix it. Instead, the insurance provider may write off the vehicle and offer you a payout equal to the car’s market value.

What happens if my car is written off?

When you have been offered a market value settlement to write off the vehicle, you may be able to negotiate. Ordinarily, they will take the car from you, but you can try and negotiate if you want to keep it. They will only let you keep the vehicle if it is possible to repair it and make it legally roadworthy. If they allow you to keep it, they will deduct money from your settlement. This is because they won’t be able to sell the vehicle to a salvage yard.

You may also be unhappy with the settlement they are offering. In this case, you can try and negotiate for a better deal. You will need to provide evidence that the vehicle’s market value is worth more than you have been offered. For instance, you could supply example price ranges of similar cars in your area. You could also independently pay for an engineer to value the vehicle.

Is there any other way to make a non-fault claim?

If you are not at fault for an accident, you may be able to make a claim using a credit hire company. This may be an option for people who want or need a speedy settlement and those that do not have a courtesy car as part of their policy.

Credit hire companies pay for you to hire a vehicle while yours is repaired. A credit hire company will also pay for any repairs that are required. You also do not need to pay the excess when using a credit hire organisation.

They will then recoup the costs from the at-fault driver’s insurance company. They may also offer further services to claim additional damages. For example, you may be eligible for injury compensation.

However, it is essential to read the small print when using this method. You should pay attention to how much the car hire will cost each day. This is because the opposing driver and their insurance company may refuse to accept liability. This may mean you will have to pay the costs. Some companies will offer to waive the hire charges if they refuse liability in exchange for a small payment.

What is a non-fault claim: Summary

Each year there are thousands of road accidents in the UK, and with that, billions are paid out in insurance claims. This means that there is a high possibility that you may have to claim your insurance at some stage. But what if the accident is not your fault?

In this case, you can make a non-fault claim provided you are entirely blameless and have the details of the other motorist. If there is no other party to blame for the accident (including animal collisions), you will have to accept liability.

Being blameless does not mean it will not cost you anything. You will likely see an increase in the cost of your insurance as it highlights a greater accident risk. You can also notify your insurance of an accident without claiming, which will also elevate your risk score. However, you need to inform your insurance company, or the policy could be invalidated.

It could take days or weeks to receive a settlement. Your insurance could either pay out for repairs or write the car off and give you a financial settlement equaling its market value.

You can also make a non-fault claim to a credit hire company. They provide a hired car and pay for repairs with the hopes of claiming it back from the other party. However, it could leave you liable to pay for costs if they cannot. It is also recommended to read the small print thoroughly for hidden charges.

Also read:
How to check if a car is insured