Non-fault claim.

reck_uk

Hi I hope someone can give me some advice about the situation I’ve found myself in.


9 days ago I renewed my car insurance for the year, sent off my forms as normal and thought nothing more about it. Then yesterday I received an email marked urgent from the Fraud Prevention department of the insurance department saying that I had not declared an accident I was in when driving the car last year. I was staggered as I’ve never been involved in a car accident in all the years I’ve been driving.


It was then that I remembered one day last year when i'd parked my car in a public carpark. I came back later and found a note on the windscreen from someone who said they had accidentally scratched my car. It took me a while to find where it was but eventually saw it on the rear bumper. I called the guy and thanked him for leaving the note and he explained that he would ring his insurance company and get it repaired. True to his word my car was repaired and paid for by his insurance and that was the end of that.


It turns out that this was the “accident” they were referring to. The insurance company has told me that I must pay a £50 charge as I didn't declare it and that my premium has now gone up by £17.22 and I must declare it for the next 5 years, which presumably means my premium will be higher during this time.


Now this is the bit I can't understand. Why has my premium gone up by £17.22 a year because some guy scratched my car? I was told this was down to a “non-fault claim”, which means an incident occurred that wasn't my fault and therefore my premium has gone up.


This is the first time I’ve come across this, surely the person who is found to be in the wrong claims on his insurance and it affects HIS premium not mine. It wasn't even as if it was an accident and there was some discussion who's fault it was. It was an open and shut case with the guy admitting he did it, I wasn't even in the car at the time.


Please can someone confirm if it's normal for your car insurance premium to go up if someone scratches your car?

olly300

Short answer to your queston is "Yes".

Long answer is it depends on your insurer.

Some insurers penalise you for all accidents and incidents regardless of fault, some penalise you only for accidents regardless of fault and others penalise you only for fault claims.

The only advise that I can give is to always shop around and read the small print of the policy before buying it.

mikey72

My axa quote asks
"Have you had any claims or accidents in the last 3 years"
and states you have to tell them, "even if the claim wasn't your fault"

But then goes on to make it clear in the FAQ's that a "claim" is one made on them, and states they'll pay for an "accident that isn't your fault", but only if you have fully comp insurance, and won't pay for tpf&t.
Others have been much clearer.

So I think it's no longer clear cut, and it the quote wasn't very specific, I'd be referring it back as a complaint, then referring it to the FOS.

reck_uk

Oh i'm sure somewhere in their T&C they mention this. It's just that it's a new concept to me, I always thought that if it wasn't your fault you wouldn't have to pay.

If on my way to work tomorrow I crash into another car i'd expect my premium to go up, but why should the guys who's car I crashed into have to pay for my mistake?

property.advert

The usual bull story excuse is that the very fact you were involved in an accident has shown the insurer that you have a propensity to be involved in an accident. Sort of a self fulfilling prophecy !

What you need to do is some simple analysis. In fact, I can help you a little as this is something I came across.

People who do not increase your premium following a no claim accident where the third party was at fault:

Quote me happy
RAC
Churchill
Direct Line

People who do increase your premium

More Than
Admiral (and all their bedfellows)

By no means exhaustive but some help.

Also, if you insure your house and car with the same people, you can benefit from a rough discount of 10% on each. So a £750 car policy and a £250 household policy would see you saving £100. With Direct Line last year I saved around 15% on my car policy alone. Quite a consideration really.

reck_uk

property.advert wrote: »

The usual bull story excuse is that the very fact you were involved in an accident has shown the insurer that you have a propensity to be involved in an accident.

That's the crazy thing p.a I wasn't even in the car when it happened, it was just parked in a car park. I don't understand why they now consider me more of a risk when it wasn't my fault and I wasn't even around when it happened. :mad:

BTW thanks for the links. In future I'll now be checking if the insurance company will charge me if I'm involved in an accident that's not my fault.

Is there a mandatory cooling off period for car insurance where I can cancel and not get charged? I took out this policy 10 days ago. I might be better to cancel and go with someone off your list.

Quentin

Check your policy to see your insurer's early cancellation policy. (They vary, most charge just a cancellation fee, some pro rata premium, some both premium + fee.)

reck_uk

Quentin are insurer's allowed to charge for cancellation, say within the 14 days? I thought when you take out a policy all consumers had a 14-28 day cooling off period where they could cancel with no charge and this was a rule.

Quentin

Yes they can charge for cancellation - though this should all be set out in the policy. (Any cooling off period is down to individual insurers, and not a legal "right")

reck_uk

Thanks Quentin

olly300

property.advert wrote: »

People who do not increase your premium following a no claim accident where the third party was at fault:

Quote me happy
RAC
Churchill
Direct Line
.

Direct Line and Churchill are brands of the same insurer. They also have a few other well known brands in their group - http://www.joininsurance.co.uk/our-brands/