Car insurance issues-can you help me?!

LaurenEmma

I really hope that if you are reading this that you can help me!

I am a student who bought my first car last year, insured with admiral and had no problems with them, until I've got new insurance this year with Endsleigh.

I experienced a unfortunate accident last July when a woman hit the side of my car whilst it was parked in a car park, and caused some damage, I want to make it clear that I was not at fault, my car was parked within the bay and I only found out because the woman who did it kindly left me a note with her contact details. We decided to settle this privately, she gave me the money to have my car fixed, however, to cover my own back in case she decided not to pay, I called Admiral, making it very clear that I was not claiming nor would I be, as we were settling the issue privately.

I had no problems with any of this and it is only now when i have taken out new insurance with Endsleigh, that I provided them with my one year no claims bonus, and they have sent me an email confirming all is good, except I now owe them £218.17. Needless to say I wanted to know why, so I called them and they said it was because they needed to log this incident and keep it on my file, that I have to pay this money?!

I am fuming that an incident which was nothing to do with me, is now going to cost me over £200? I have been given 2 weeks to pay this money but I wondered if anyone had any advice for me, I am a student and struggle with money anyway, so having to pay this on top of my insurance is going to be a nightmare! Surely I shouldn't be penalised for something which was not my fault?

neilmcl

So just to confirm, are you saying you didn't declare the accident when you applied for insurance with the new insurer and now they're charging you extra because of it?

Tilt

First obvious question; why did you decide to change insurance company?
Second question; what did Endsleigh originally quote you and were they aware of this non-fault claim?

AdrianC

You have a year's no-claims, yes - but that gives you a certain %age discount off a base premium that was calculated based on no involvement in collisions. You have been involved in a collision, so you are a higher risk of being involved in a future claim, so that base premium is higher.

Let's assume that your base premium was £1,000, and your NCB gives you 20% discount - £800.
After the collision, your base premium is £1,200, so your NCB means your premium is £960.

Aretnap

Presumably when you applied for insurance with Endsleigh they asked something along the lines of: "have you had any accidents in the last 5 years, regardless of blame?" How did you answer that question?

angrycrow

Consider yourself extremely lucky they are only charging additional premium. A lot of insurers would have cancelled the policy which you would then need to declare to all future insurers. This could have cost you a lot more than £218. You could try to negotiate the amount down the worst they can do is say no but get it paid asap, you can always cancel the policy and go elsewhere once you have paid the additional premium.

grumbler

Tilt wrote: »

First obvious question; why did you decide to change insurance company?

I have never had my insurance with the same company for two years in a row and saved a fortune by shopping around every year and buying a new policy via TCB/Quidco.

AdrianC wrote: »

...You have been involved in a collision, so you are a higher risk of being involved in a future claim, so that base premium is higher.

This is far too blanket and unsubstantiated presumption, especially as it doesn't differentiate betwen 'at fault' and 'not at fault' collisions.

Yes, this it the status quo in the insurance industry. Very unfair, but we have no choice. However, I don't see how it can be justified. Personally, I would never report a minor accident settled privately if I weren't at fault.

jimjames

grumbler wrote: »

Yes, this it the status quo in the insurance industry. Very unfair, but we have no choice. However, I don't see how it can be justified. Personally, I would never report a minor accident settled privately if I weren't at fault.

Sadly it is the case. I've had similar and would now never report a minor accident and just deal with it myself as it would work out cheaper.

Quentin

grumbler wrote: »

Personally, I would never report a minor accident settled privately if I weren't at fault.

When making such a decision (which is a breach of your policy conditions) you need to be certain the other party is also intending to breach his policy conditions too by not notifying his own insurer. Should your insurer discover your deliberate breach at any time over the years, then that does give them a way to void your policy (could be expensive in the event of a big claim for injury from a third party in the future!)


These days, "guilty" parties do often settle privately (to retain their no claim bonus), but still notify their insurer too (in case the "innocent" party decides to come back for more in the future (you have 3 years to put in a claim for whiplash etc, and 6 years to put in a claim for damage!

Tilt

Look, the OP hasn't come back with the required info so let's not waste any more time on this until he/she does.

Strider590

Insurance premiums go up regardless of fault, regardless of NCB, if you are involved in an accident you are higher risk, simple as that.

You can only blame all the idiots who crawl about brake testing people and all the idiots who park in locations where their car is more likely to get hit.