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I have two cars insured with two different insurers - do I need to tell one of a claim that occurred with the other?

I have two cars with two different insurers. In August last year, another car crashed into my car and the accident is still being resolved by the insurance company, though I hope it will be a no-fault claim. However, I recently received a letter from my other insurance company which insures my other car, saying that they were going to increase my premium due to them being notified of an undisclosed claim. Should I have notified them of the accident, even though it was on a car insured with another company?

Asked on 2 April 2019 by Ricky

Answered by Honest John
You do not generally have to notify them until the inception of the new policy if it is a claim ongoing. I would go back to the insurer of your second vehicle and ask how can they load a premium on a "non-fault" claim on a vehicle that they are not insuring? They have no "insurable interest" in the other claim. You have not increased in risk if the incident was not your fault. If they say you are more likely to make a claim as a result of making this one. Ask them "why would I not make a claim when the incident was not my fault"? They are basically penalising you based on chance and are Breaching the FCA regulations under ICOBS 8.3.3 by suggesting you should not make a claim.
It is about time insurer's stopped penalising people for having to make a claim when it is covered under "tort law". That is why you have insurance. I would suggest claiming this increased premium for both policies from the at-fault Insurer.

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