Do you have to tell car insurance company if repair is paid for by other party?

katies_mum

We are not trying to gain a financial advantage - hopefully the repair will be paid for, so the insurance won`t be paying out, so we are not frauding anyone.

We arn`t lying - just might not inform them.

If we do inform them - even if it costs them nothing because the job is done and dusted...they then could profit from the whole incident by increasing premiums just because we owned up! What other consequences are there apart from more money for them? sorry if I`m missing something! How would they know?

Mustard_Dave

katies_mum wrote: »

We are not trying to gain a financial advantage - hopefully the repair will be paid for, so the insurance won`t be paying out, so we are not frauding anyone.

We arn`t lying - just might not inform them.

If we do inform them - even if it costs them nothing because the job is done and dusted...they then could profit from the whole incident by increasing premiums just because we owned up! What other consequences are there apart from more money for them? sorry if I`m missing something! How would they know?

Of course you are trying to gain financial advantage - if you tell them, your premium may increase. If you don't, it will not increase as a result of the accident.

Motor insurance policies are a civil contract based on utmost good faith. Every policy has a comment regarding your duty of disclosure. You must inform them of anything that you suspect may be relevant - if you have any doubt as to whether it is relevant, you must declare it.

If I was in your shoes, there could be any number of solutions. Personally I would prefer to do a private deal and keep quiet, however, it would depend on whether: I'm sure the repair would not cause any future problems; if there is there any structural/mechanical damage; whether I trust the other party to keep quiet.

The safe option is to tell them everything. Believe me, you don't want to fall foul of duty of disclosure. I know somebody who had his policy cancelled for non-disclosure - his premiums now are ridiculous!

NeverAgain_2

If the other guy pays up sweetly I would probably not disclose it.

This is still the clearest breach of contract imaginable, but could be seen as a reasonable compromise between sticking to the letter of the conditions and not being too prissy and pedantic.

If the other guy doesn't pay up sweetly, then there are two phone calls to make, one to his insurance company and one to yours.

Quentin

katies_mum wrote: »

We are not trying to gain a financial advantage - hopefully the repair will be paid for, so the insurance won`t be paying out, so we are not frauding anyone.

We arn`t lying - just might not inform them.

As previously has been posted, this is your call!

But don't convince yourself you aren't breaching the policy and leaving yourself open to future problems.

You would be committing fraud by not declaring it - though it's entirely up to you whether you think the reward is worth the risk!

ElkyElky

I had an minor issue with a third party and I didn't inform the insurance company. They paid my garage bill in full and that was the end of it. The insurance company won't know about any accidents unless they are told by either you or the other party. They can't find out from garages, your tyre manufacturer or whoever else.

Even if the other party did tell your insurance company that you had an accident and you both settled without the insurance involvement.. what's the worst they'll do? The insurance company won't be out of pocket or even remotely affected by the incident so they wouldn't give two hoots.

It's questionable whether it would be illegal or not.. but so what if it is? Speeding is illegal but we all do it.

You would be taking a risk by not involving the insurance companies though. If the other party doesn't pay up and you turn to the insurance, they'll wonder why you didn't involve them in the first instance (I'm not sure if that would jepordise any claim?). If the repair bill is quite costly, then it would probably be best doing it through the insurance instead of putting all of your trust into a complete stranger to pay up.

Was your husband moving at the time? Another advantage of going through the insurance company is that you can claim for personal injury if need be, whip lash and back pain? Not involving the insurance company is only going to benefit the other party.. you won't gain anything from it.

Mustard_Dave

ElkyElky wrote: »

Even if the other party did tell your insurance company that you had an accident and you both settled without the insurance involvement.. what's the worst they'll do?

In the case of my mate, who didn't disclose something completely irrelevent, he drove into the back of a van and the owner claimed against his insurance. When the insurer started digging, they found out he had been added as a named driver on his sister's policy and didn't declare it. They paid out but immediately cancelled the policy. Now when he answers 'yes' to the question, "Have you ever had an insurance policy cancelled or had motor insurance refused for any reason?", they either decline to cover him or offer a ridiculous premium.

mikey72

Mustard_Dave wrote: »

In the case of my mate, who didn't disclose something completely irrelevent, he drove into the back of a van and the owner claimed against his insurance. When the insurer started digging, they found out he had been added as a named driver on his sister's policy and didn't declare it. They paid out but immediately cancelled the policy. Now when he answers 'yes' to the question, "Have you ever had an insurance policy cancelled or had motor insurance refused for any reason?", they either decline to cover him or offer a ridiculous premium.

I can honestly say, the question

"are you a named driver on another policy"

is one I have never been asked, or have seen on any quote I've done.

Perhaps there was slightly more to it?

katies_mum

Thank all. Husband wasn`t in the car it was parked in the works carpark. Others in work know he bumped the car and know he has offered to pay to get it sorted.

katies_mum

Hubby has informed the bloke who hit him of the approx cost of the repair plus courtesy car, as many of your suspected he cannot afford this.:mad: Has said he will get the car repaired at his cousins! and he will lend hubby his car! I don`t thinks so :eek:. The insurance for the van is not in his name it seems its a policy in the name of the owner of the van and he has a few drivers (one of which hit our car) very conveniently this man is away on holiday for 4 weeks. I am at a loss now, hubby still hasn`t got the blokes full name or registration details, I have asked that he try and get these today. Some of the blokes at work think he is being unreasonable as he won`t let him repair our car .

As you know we havn`t told the insurance company yet, just a couple of questions. We now appreciate its going to have to go thru them... will we get into trouble as its days after the event and can they trace their insurance with the registration number.

I`m really getting out of my depth with this now. Thanks as always.

Gene_Hunt_2

katies_mum wrote: »

Hubby has informed the bloke who hit him of the approx cost of the repair plus courtesy car, as many of your suspected he cannot afford this.:mad: Has said he will get the car repaired at his cousins! and he will lend hubby his car! I don`t thinks so :eek:. The insurance for the van is not in his name it seems its a policy in the name of the owner of the van and he has a few drivers (one of which hit our car) very conveniently this man is away on holiday for 4 weeks. I am at a loss now, hubby still hasn`t got the blokes full name or registration details, I have asked that he try and get these today. Some of the blokes at work think he is being unreasonable as he won`t let him repair our car .

As you know we havn`t told the insurance company yet, just a couple of questions. We now appreciate its going to have to go thru them... will we get into trouble as its days after the event and can they trace their insurance with the registration number.

I`m really getting out of my depth with this now. Thanks as always.

That's why you were told to inform your insurance company. They may know how to sort it.;)