Scrape, my fault, should I claim?

J_Dawg_Justice

Wpukd really appreciate some advicd on this car insurance conundrum:

If someone, hypothetically speaking, lost control of their car and dented the entire driver's side on the central metal barriers of a dual carriageway, what should they do?

The driver was at fault, but no other people or vehicles were involved and no property was damaged (except the driver's car). 

The car was only worth about £2k beforehand, and insurers would unquestionably want to write it off. It wouldn't be financially viable to repair.

The driver managed to get the car home without roadside assistance, but hasn't driven it since.

It seems the available options are:

1. Inform the insurance Co, get it written off and make a claim for money towards a new car.

2. Inform the insurance Co, who will write it off, but not make a claim.

3. Not Inform the insurance company of the incident, get the car scrapped (tell the insurers that the car has been scrapped, stating electrical faults and age which are also genuine reasons that the car isn't much use) get a refund on insurance and car tax plus the scrap value of the car.

Would options 1 and 2 affect future insurance premiums? 

Is option 3 legal, or could there be other unforeseen problems down the line with insurers?

Thanks in advance for your answers, who knows why this entire situation has suddenly crossed my mind.

Nasqueron

What about option 4 - highways agency has some evidence from a camera and comes after you for the repairs?

As far as I know with 2, if you simply inform the insurance of an incident but do not wish to make a claim, they won't know anything about the details so would not write it off. You could repair it yourself from a scrap yard parts or something if it was cost effective?

1 - depends what money you can get for the car given the damage will reduce the value they will pay out
2 - costs you higher premiums but no money
3 - probably what most people will do and unlikely to ever come out but still dishonest

No-one could tell you what the difference would be between 1 and 2, I'd assume 1 would make premiums higher because you cost them money but I couldn't state that with any evidence

I scrapped my old car after a skid on ice that ended up damaging the radiator in a ditch, the car looked pretty much ok after it was pulled out by a passing guy but the patching up of the leak / repairs wasn't worth the cost so I scrapped it. I told the insurance I had had a skid and car was a bit banged up - I didn't go into detail but I didn't lie either, I said as it was getting old (was planning to replace it anyway as it was just shy of 10 years old and getting costly to repair) and wasn't worth doing it up but didn't want to gamble on a claim and them prying too much

Mildly_Miffed

@Nasqueron gives option 4, which is entirely feasible.

There's also options 5a and b, depending on how bad the damage is. Shrug, and continue to drive it as-is, or get some cheap used panels from a breaker and fit them.

But if you do decide on your option 3, you don't need to make up reasons to give the insurer if you cancel the policy. Just... cancel the policy.

Car_54

Option 2 - why would the insurers write it off? Cars are only written off if the cost of repairs etc. are disproportionate to the value of the car. There are no costs for them with this option.

Option 3 - is it legal? No, first you're obliged contractually to tell the insurers. Second, it's a crime (fraud).  The "problems down the line" are not "unforeseen"  - if it comes to light, then a policy cancellation which you'd have to declare for ever at eye-watering cost.

Option 4 (as per Nasqueron's post above) - how does the driver know there's no damage to the barrier? I doubt he would have been in the right frame of mind or qualified to assess that properly. If there was, it's another criminal offence, failure to stop and report.

FWIW I'd go with option 1. What's the point of paying insurance premiums and then not claiming for legitimate losses?

Ectophile

Car_54 said:

FWIW I'd go with option 1. What's the point of paying insurance premiums and then not claiming for legitimate losses?

It's a £2K car.  The excess is likely to be at least £500.  So the OP would have to find a new car with less money than the old one was worth.

Then the OP loses 2 years no claims bonus, and the premiums will go up for around 3 to 5 years as well, as they will have to disclose a total loss claim.

The alternative is to get the dents knocked out, and carry on driving the car for a few more years.

DullGreyGuy

Are you sure there was no damage to the central reservation? 

Claims for street furniture tend to come in many months, or even years, after the date of the accident and can be very expensive; it's a few grand to replace a lamppost for example. 

As others have said 2 wouldn't happen, the car wouldn't be written off if you dont claim. 3 is simply fraud

caprikid1

I  think the majority of the general public would do the following.

1. How old am I ?
2. What are my current Premiums ?
3. How many years No Claims Bonus.
4. Likely premium rise.

Likely insurance value of car ? Will they really value it at £2K.

All of the other points are valid in terms of technically what you should do.

You need to fully understand the possible outcomes of claiming and not claiming.

Personally in a similar situation on a known blackspot for losing control I did not claim or inform anyone.