American style, "Sue for Anything" mentality

stupot52

In early December of last year I was involved in a minor accident with a pedestrian. At the exit to a supermarket car park the person walked out in front of my car as I was pulling away on to the main road. The impact was of a very minor nature and the person was soon on heir feet, a little shaken but none the worse. Of course I stopped and offered to call police and ambulance. He did not appear to be badly hurt and refused this. I provided my details and a few weeks later I was requested by the local police to make a report of the accident and produce my driving documents at the police station.. A week or so after this I received a letter from the police stating that they will be taking no further action.

Now, just under 6 months later, I have received a letter from the person’s solicitor claiming “damages” for all kinds of medical problems which resulted from this accident. In the letter I am told to inform my car insurance company and send them a copy of the solicitor's letter.

There is little doubt in my mind that this is a “no win,no fee” firm of solicitors and that their client’s claims are highly suspect, although I have no immediate proof of this. What concerns me is that if I inform my insurance company, my no-claims goes up in smoke, whatever the outcome of the claim, thus increasing my premium substantially next time around. In other words, through no fault of my own, I am to be penalised financially whatever happens, thus over 30 years of careful driving flushed away in the toilet...for a minor accident which was not even my fault.

Does anybody out there have any advice they can give me on this, based upon their experience or qualifications ?

raskazz

The advice I can give is that your no claims discount will most certainly not 'go up in smoke'. If you protect your no claims discount then (assuming you have had no other recent claims) it will not be affected whatever the outcome. If you do not protect your no claims discount then it will be reduced by 2 years if your insurer does have to indemnify the third party.

Forward the letter to your insurers. If you don't then you will firstly be breaching the terms of your policy, and secondly you could end up having to fork out much more than your premium in legal fees if you insist on defending any court case yourself.

stupot52

Thanks to raskazz for the prompt reply....May I ask these questions....If I attempt to protect my no claims discount now, knowing full well there will be a claim against my policy in the coming weeks or months would an insurance company still honour that protection?

As and when my Car Insurance is up for renewal, if this claim has been paid by my insurers, would my premiums automatically rise even if my no claims discount was still intact ?

Steve1981

stupot52 wrote: »

Thanks to raskazz for the prompt reply....May I ask these questions....If I attempt to protect my no claims discount now, knowing full well there will be a claim against my policy in the coming weeks or months would an insurance company still honour that protection?

As and when my Car Insurance is up for renewal, if this claim has been paid by my insurers, would my premiums automatically rise even if my no claims discount was still intact ?

you cant protect against this incident if you dont have the protection already, if you call and try to add it on then file the claim, they will probably view it as you trying to defraud them. you had the option to protect at the start of the year and anyone trying to add protection midterm is viewed as somewhat dodgy by the insurer.

the protection for bonus would only protect against losing your discount it does not protect against a loading being applied.

Steve1981

also whilst it will be listed as an open claim until it is resolved, to take into consideration that your own insurers will want proof of medical examinations etc and if as you say there is a fast one being pulled they will smell a rat. remember insurers make money by not paying out on claims

raskazz

Most insurer's won't let you add protection during the term of the policy. Even if you did manage to add it, it would only protect your discount from being reduced due to claims for incidents occurring after the date you added it. So it wouldn't prevent any reduction if your insurer has to settle this claim.

Secondly, yes your premium would increase if you incurred a claim but had the same no claims discount - because the discount would be applied to a higher 'base premium'.

stupot52

I have provided my motor insurers with the letter received from the claimants solicitor and am awaiting further news regarding this claim.

There is little doubt in my mind that my insurance company will smell the proverbial rat and conclude that this claim is totally spurious, and consequently refuse it. However, it is likely that my next insurance premium will be loaded higher to reflect the claim, through absolutely no fault of my own. My no-claims discount will be adversely affected also, as discussed above.

Provided the above comes to pass, is it worthwhile making my own claim for compensation against this claimant for my out-of-pocket expense as and when my insurance renewal notice is received? I would assume that a renewal premium is the logical baseline to use in such a case as this.

Stupot52

Altarf

Your description of the accident would not lead me to assume that the case is clear cut. From your description is sounds like you didn't see a pedestrian that was walking in front of your car. Regardless of the pedestrian's responsibility, I would say that you had a responsibility to not run people over.

Debt_Free_Chick

stupot52 wrote: »

However, it is likely that my next insurance premium will be loaded higher to reflect the claim, through absolutely no fault of my own.

Insurance covers accidents - accidents often don't involve "fault" just an unfortunate sequence/timing of events.

Try to think of it as "one of those things". Your insurance company will be footing any bill so you can bet that they, too, will want to keep any payout to the minimum that is strictly needed.

Good luck