Accident before passing driving test - insurance cancelled before 'resolved'

learner-car-insurance

Hi all,

Any advice would be appreciated here - I think I've got myself into a bit of a pickle.

I've just passed my driving test - and called the insurance company to let them know and sort out the next steps (cancellation, etc). However - and here's the rub - about twelve days before that I'd been at fault in a collision. I took the trim off a door of another person's car and the matter was settled privately but we had let the insurance company know that something had happened - and the matter hadn't been settled in their eyes before I passed my test and called them to let them know. All the appropriate paperwork has since been filled in and sent off and at their advice it was made very clear all over the forms that the matter has been settled already, and that it was a notification and not a claim. Thankfully, the other driver was very reasonable and I'm grateful to him for it.

This has, obviously, led to a higher insurance premium quote (which is perfectly acceptable); my car is off the road and uninsured for now in the hope that the company will accept that the action is resolved and log it as thus. However, I'm getting worried because of the matter of the cancelled insurance with this continuing - will it be logged permanently as not resolved still because of the cancellation, despite the fact that it's settled? Is there a chance it would be considered resolved in retrospect? I think I've messed up completely and I don't quite know what to do.

Any advice would be helpful (even if it is 'absorb the cost, you eejit' - which would be very acceptable advice and I am already resigned to it). Thank you.

Quentin

This won't have a long term affect, though you will now have to disclose the incident to any new insurers you approach for quotes over the next 3/5 years ( depending on the length of history you are asked for)

If you are in contact with the third party you paid off over the collision it would be helpful to him to tell him you reported this to your insurer

When settling privately you normally do this to keep the matter private and off the insurance radar.

Now you have reported it you presumably have the third party details to your insurer, meaning he needs to disclose it to his (and future insurers) too.

Not to do so can lead to problems/claim rejected/cancellation of policy etc in future

ThinkingOutLoud_2

Quentin is right that you must disclose the accident when seeking any alternative insurance in the coming years and so should the person you hit.

In your case, it was an at fault incident even though you did not claim - so you will have to accept the higher premium that will result (as you have). It should not affect his insurance, but he should not hide it.

While people do settle privately to keep it quiet, I'd suggest it is not necessarily the "correct procedure" not to notify your insurer. If one partly involved tells their insurer then as above that could make it awkward for the other.

Of course, settling privately may save everyone money and is not in itself wrong. Many have done so. So as you have declared it, I'd imagine all will be OK.

One thing to consider is if you ever hit anyone again and they "agree" to do it privately - what if they change their mind and/or demanded more money than you had figured? Not reporting things promptly can "upset" your insurer as will being asked to pay for the other parties garage making the repairs not their preferred supplier at discounted rates.