confused over claiming

ooops

hi, my son reversed into a car. There is some damage to both cars, but my son isn't bothered to get his own fixed, but the other driver wants to get his fixed. My son only passed his test a year ago, and his insurance is very expensive and the excess is £500, so he is keen to settle without insurance, paying the other driver cash. If he has to claim, he will lose his car at the next renewal as he could not afford the huge increase (he is only 18). Can someone please advise on what the excess pays for (damage to your own or someone else's vehicle) and whether its best for him to go through the insurance and risk losing his car or paying the other driver. The driver has quotes between £300 and £1000. Also, do both parties insurance companies have to be involved or can it be 1 insurance company dealing with the other driver?

Thanks for your help!

vaio

excess only applies if he claims for the damage to his own car, he can pay cash to repair the damage to the other car but will still have to declare the accident when he renews his insurance

Quentin

If the injured party has extensive damage, then your son should be aware that the costs may likely not just be for the repairs. A hire car may be needed whilst the car is in dock, plus possible loss of earnings, and the third party is entitled to all his out of pocket expenses a well as a sum to compensate for the inconvenience he has been put to (arranging quotes, taking car to bodyshop etc).

It may be safer to let the insurance company deal with this as a claim, then your son can still remove the claim by reimbursing the insurer for the money paid out, thus retaining his NCD, should the damage be affordable.

To answer your question, the other insurer can deal direct with your son if that's what he wants. (Though as already posted, the incident still needs to be reported to your son's insurer).