Car Insurance: claim still unresolved - what happens to my no claims discount

joe_70

hello there,

I need some advice regarding my car insurance.

I was involved in a traffic accident that wasn't my fault on May'07. As the accident was quite nasty the Police was involved and took statements to all the drivers and all the witnesses.

A few moths ago I received a letter from the Crown Prosecution Service that the driver that caused the mayhem in the dual carriageway pleaded guilty to "Driving without due care and attention" and was fined £250 and his license endorsed with 6 penalty points.

As a result of the accident I was off sick fr almost 2 months. I am currently pursuing a claim for my whiplash injuries and my employer is also pursuing to recover my wages from the third party insurer.

To me everything is clear, but it seems that when the law, insurers get involved the reality ceases to exist and everything becomes extraordinarily complicated.

My problem is:

My Car insurance is due to be renewed in a couple of weeks, and my current insurer has put my "no-claims-discount" on hold as the third party has accepted no liability.

My questions:

1. Is this standard practice that when a claim is still unresolved the no-claims discount is automatically put on hold?

2. I know that insurers can be very crafty and drag things on an on in order to not to pay, or pay less. If I change my current insurers (A) for a different company (B) whilst my claim is still open with A , does it mean that insurer A (no matter how many police reports available) can decide to settle 50-50 to avoid hassles and because I am no longer with them be forced to accept?

3. If I insure with company B and my no claims discount is reinstated a year later once company A has been satisfied: what happens to my no claims discount? Can it backdated?

I know it's a long question, but I am so lost at the moment !

thank you

joe

dunstonh

1. Is this standard practice that when a claim is still unresolved the no-claims discount is automatically put on hold?

Yes.

2. I know that insurers can be very crafty and drag things on an on in order to not to pay, or pay less. If I change my current insurers (A) for a different company (B) whilst my claim is still open with A , does it mean that insurer A (no matter how many police reports available) can decide to settle 50-50 to avoid hassles and because I am no longer with them be forced to accept?

Actually, that isnt the case. The insurers want to close cases as quickly as possible as it can cost more in admin having them unresolved. However, they are not going to settle a case whilst things are unresolved. The court case could well be what the other insurer are waiting on before deciding who is liable.

3. If I insure with company B and my no claims discount is reinstated a year later once company A has been satisfied: what happens to my no claims discount? Can it backdated?

It can be backdated with the same company. Its upto the new company if you change if they accept it or not.

joe_70

thanks for the reply dunstonh

may I ask two more questions?

1. Can I change insurers (from A to whilst I still have an open claim with A?

2. Does changing from A to B in these circumstances somehow look bad, or is it quite common?

I am only asking these questions because my current insurer (A) is quoting me like £100 more for the same cover I could get from a different insurer (B).

thank you very much

joe

dunstonh

You can change insurers but personally I wouldnt. That is just a personal opinion but I think its better to remain a client of the insurance company whilst they resolve the claim.

joe_70

thank you dunstonh

joe