Can my insurance company file a claim against me without me knowing?

Alexandra92 · 30 October 2012 at 2:29PM

On my way to Uni last November a woman drove into me on a roundabout, it was completely her fault but she blamed me and we exchanged numbers and left it there. I never reported anything to my insurance company as there was little damage and my car is old and worked fine. January this year my insurance company (Direct Line) rang me and told me that this woman had reported the accident (2months later), I told them my side of the story and that it was completely her fault and then heard nothing from the woman or my insurance company, I thought the claim had been dropped. Now my insurance was due this month and when I rang them for my no claims for my new insurance company, they said that I had no no years as they had paid out this woman. I had no idea that they had done this, they never sent me any letters or asked me what had gone on, they never informed me of anything! When I asked why they had done this they said 'it was a good will gesture'. The woman claimed for a £750 damage to her car which it was not, also she demanded a like for like hire car (Audi A3) which cost £450!! I now can not get cheap insurance anywhere as I have a claim against me, but as this is not my fault I'm furious. I'm going to write a letter, but just wondered what else I could do? Surely this is not allowed? Thanks

BertTheRaccoon · 30 October 2012 at 2:37PM

Roundabout collisions, without independent witness evidence, usually have a habit of going 50/50 split liability as it is usually your word against her and vice versa (you can't prove she moved into your lane any more than she can allege you moved into hers for example).

Strictly speaking, you should have at least notified your own insurers "for information purposes only" soon after the event happened, just incase grotbags decided to try and put a claim in against you later down the line - as she has evidently done.

So her lot have approached your insurers directly with the allegations, your insurers have spoken with you to gain your side of the story and then made a decision of whether it was worth "digging in" for a fight or if it would make more economic sense to settle or make a contribution towards her claim.

They will be perfectly within their rights to do this and they should have settled her claim on what is called a "without prejudice" basis, meaning no formal admission of liability has been made on you behalf.

Because they have had an outlay, it gets marked down as a fault claim.

Their decision not to write to you or explain matters as to what their intentions were going to be is poor form, but they will have been within their rights to decide to settle the third party claim.

I don't really think you will get anywhere with your complaint if I'm honest.

InsideInsurance · 30 October 2012 at 3:54PM

An insurance company can legally settle any claim made against you as they see fit, plus it is normally in the policy wording even though it strictly doesnt need to be. That said, most wont do so totally blindly because it isnt very good customer service unless the PH is being totally unreasonable or not responding.

Evidently you need to raise a complaint to the Claims team that you were not adequately informed about the claim or its progress given your disputing your liability.

missile · 30 October 2012 at 3:56PM

I feel for you. Many people do not report incidents for fear of losing their NCD, but this is the risk you run.

You would have been in a far stronger situation had you reported this incident at the time as you are required to do under your insurance T&Cs.

I once had an accident which was my fault. I offered to pay for the minor damage, but next day I got the call from my insurer. Several days later other driver contacted me with the estimate for repairs expecting me to pay, I told him to fox trot. The case was settled 50/50 and as a result we both lost NCD.

Can my insurance company file a claim against me without me knowing?

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