Car Insurance Claim Query

Car_54

Altior said:

I said what I would do in the same position. Are you claiming that if I parked in a private car park such as Tesco, noticed that I got a car park ding upon returning to the vehicle, that I would have to report this as an accident to my insurance instead of initiating a smart repair for a few quid? That's one of the reasons for excess, to prevent nonsensical claims that would cost more to to administer than the repair itself.

From what the OP has outlined, this is essentially a very minor car park bump on private land. I don't feel settling this between the parties involved without reporting it to the respective insurance companies is committing insurance fraud. So no, I'm not suggesting that they commit insurance fraud. People up and down the country must fix up minor car park type knocks and dings without reporting them, they are not fraudsters. 

Why don't people report these things? Usually, to avoid increased insurance premiums.

That means they are obtaining a financial gain by withholding information. That is fraud in the eyes of the law, whether or not you agree.

facade

Altior said:

I said what I would do in the same position. Are you claiming that if I parked in a private car park such as Tesco, noticed that I got a car park ding upon returning to the vehicle, that I would have to report this as an accident to my insurance instead of initiating a smart repair for a few quid? That's one of the reasons for excess, to prevent nonsensical claims that would cost more to to administer than the repair itself.

<snip>

The insurer wants you to report it, not necessarily to make a claim.

The reason is risk profiling.

If you are in the habit of parking in a clear area of Tescos, well away from other cars, yet you are still a magnet attracting people who slam their doors into you, then you are statistically a higher risk than someone who doesn't, and they like to reflect your higher risk with an increased premium.

Altior

And the excess can easily be higher than the cost of the repair. When I was 18 many years ago, my excess was close to the value of my car! 

There's obviously something I am missing here. Can you point me to the exact law that states if my vehicle gets knocked by a rogue trolley in the Tesco car park (private land), that if I don't subsequently report this 'crash' to my insurer, I'm committing fraud.

sheramber

Check the policy conditions for your policy.

You can notify that you are reporting the incident for information only and not making a claim.

In these cases there is no excess payable as the insurance company are not paying out anything.

Car_54

Altior said:

There's obviously something I am missing here. Can you point me to the exact law that states if my vehicle gets knocked by a rogue trolley in the Tesco car park (private land), that if I don't subsequently report this 'crash' to my insurer, I'm committing fraud.

Your policy documents will almost certainly have a clause requiring you to report. A typical one says:
"As soon as you become aware of an incident such as an accident, theft, fire or water damage that results in death, injury, damage or loss, you must tell us, even if it looks like there’s no damage to your car. This is regardless of whether it may lead to a claim under your policy or not."

As for the law, section 3 of the Fraud Act 2006 creates the offence of "Fraud by failing to disclose information".

BTW Tesco's car park may be 'private land', but that is totally irrelevant so far as insurance is concerned. It is also a public place where the Road Traffic Act and other related legislation applies.

Altior

I looked up my actual conditions:

Accidents and claims

You must notify us as soon as reasonably possible if you or any driver become aware of any accident or loss involving the car or of any other incident which may lead to a claim by you or by a third party. If you or any driver receive any notice of prosecution, inquest or fatal accident enquiry or you or any driver are sent a claim form from a court or a letter, you or any driver must send it to the insurer, unanswered, as soon as reasonably possible.

My excess is £200 and obviously a car park ding is, not at any point whatsoever, going to lead to a claim. So, there is no requirement or mandate to report it.  And, not doing so is not fraud. I would say that condition exists to prevent people from saying to their insurers that they were hit back in November 2022, and stating that retrospectively I would like to make a claim today. It's not there to compel people to call their insurance company and report that they've suffered yet another car park ding in Tesco.  

tifo

pauln said:

I was thinking that an insurance claim would mean the insurance company wanting to assess the damage themselves and use repair companies they have an association with which would push the cost up.

It doesn't matter to you what the insurance companies pay each other. If there's any money paid out it's marked as a claim.

As it will be a non fault claim eventually it should not affect your premium when/after it is settled. Until it is, you've to declare it as an ongoing claim and it's marked as a fault claim because the insurers don't know who will pay out. If you've a renewal before the claim is settled, it will affect you but usually you'll be paid back any increase because of it when the claim is settled.

You'll get a courtesy car if yours is not driveable and you've either got the cover on your policy, the other insurer accepts liability or you hire one on credit hire. If yours is driveable then you'll get a courtesy car when it's in for repair.

The above depends on the engineer report for damage to your car.

You'll have to declare it as a (non fault) claim for 5 years.

Insurers never lose out.

tifo

Car_54 said:

BTW Tesco's car park may be 'private land', but that is totally irrelevant so far as insurance is concerned. It is also a public place where the Road Traffic Act and other related legislation applies.

"Our car was reversed into when parked on a relative's drive". A driveway is private land.

Car_54

tifo said:

Car_54 said:

BTW Tesco's car park may be 'private land', but that is totally irrelevant so far as insurance is concerned. It is also a public place where the Road Traffic Act and other related legislation applies.

"Our car was reversed into when parked on a relative's drive". A driveway is private land.

Indeed it is. And the OP has a valid claim in civil law, which would be covered by a motor insurance policy.

DullGreyGuy

tifo said:
Insurers never lose out.

How do insurers never lose out?

Average cost of a non-injury motor claim in 2018 was £3,082 and an injury motor claim was £10,454 whereas the average motor insurance premium is £436. So on an individual policy they can certainly lose out many times over.

Obviously insurance works on the principle of a pool though, loss making policies are funded by non-loss making ones however according to EY the expected average combined ratio for Motor in 2022 is 115%... so for every £100 of premium (exc IPT) they'll be paying out £115, ie they are making an underwriting loss.