I recently had a chat to my insurance broker after I damaged another car when reversing out of a parking space. (Mum was seriously ill, hence I was not in a fit state to drive.)
The cost of a small bump is the cost of the excess plus the increased insurance premiums over the following 3 years. This can amount to as much as £1K or more. I asked if it was legal to report the accident (a legal obligation) but pay out of my own pocket for the damage to the other persons vehicle. The broker said that this was legal, and the presence of an accident report with no claim would not lose my NCB. He did mention that I should get a signed statement from the other person confirming the arrangement so as to avoid them taking my money AND claiming against my insurance. Can anyone confirm this information? Thanks.
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I have seen them ask, "Have you had any accidents or losses in the last 3 years, regardless of whether a claim was made?"
So be careful, this is usually on online insurance sites, and on my House Insurance.
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It may not affect NCD, but it could have an affect on a premium as you would have to declare a 'claimless accident'
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How far along the scale of "accidents" would you consider to require reporting? A couple of years ago, a lady reversed into my car and smashed the number plate holder, no other damage to either vehicle. She was very apologetic and gave me the money for a replacement holder, nothing else was said about it and I certainly didn't tell the insurers. Should I have done so, or should she? What happens if someone spots a new car park ding, should one get on the phone and report it as damage?
Surely a claimless accident can occur for both parties and as far as the insurers are concerned both parties could be 100% to blame.
Jonathan
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exactly, only tell them if you have to.
otherwise it just creates more cost and paperwork.
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Insurance companies are not interested in hearing about very minor bumps or scrapes that you have had repaired yourself, only more serious happenings.
Even in the latter case, if you do get it done without involving the insurance company, let them know to prevent another driver involved trying to take advantage as already stated above.
My then young son once had a slight bump (his name was on my insurance cover) and I agreed to pay the other driver's repair costs (rear bumper damage on Ford Sierra after son took foot off clutch in stationary traffic not realising he was still in gear). I got a quote for a very modest sum and told him where to take his car (repair centre owner is a personal friend).
However, despite his assurances, the other driver got a staggering quote from another source for nearly £800 claiming, amongst other damage, the Sierra's chassis had been put out of alignment.
My son told me that the Ford's boot interior already had damage that could not have been caused by the slight bump and we quickly concluded that the man involved was taking advantage.
I then wrote to my insurance company, stating all the facts in full detail and that I believed a scam was being set up. It took up the matter and, in the end, the other driver failed to get away with his attempted deceit.
My premium was never affected afterwards, whilst my son went on to pass his IAM test well before the age of 30.
By the way, if you arrange for the work to be done yourself, most car repairers will ask whether it's an "insurance job?"
If not, then you will normally pay less for the repair work.....
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>>If not, then you will normally pay less for the repair work
If not, then you will normally pay FAR less for the repair work. Local RAC windscreen place charges 60% less if it's not an insurance job.
When hiring a Luton van the other week, I had to sign that I hadn't been involved in any accident giving rise to a loss of over £3,000 in the last 3 years. This is presumably to allow for broken numberplates.
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My son got caught out by this scam just after he started driving. He reversed about a yard and 1mph into a taxi. He owned up to the accident. The taxi driver came around the house and got the relevant details. He was leaving as I arrived. His car had far more damage than the lad caused with too much old rust. I could not stop him leaving, so I reported the scam to the Insurance Co. to prevent a fraud. Six weeks later an engineer rang to enquire/discuss this problem. He was not best pleased to discover what had happened and the delay. The taxi got fully repaired and my lad lost what little NCB he had.
Cheap happy snap cameras should be kept in every car for such occasions.
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What Scam are you talking about? The driver came round for the insurance details, presumably so he could make a claim. If the engineer thinks there was existing damage prior to accident he would say so on his report. But, yes, absolutely a minicamera is a MUST HAVE accessory to any car.
Having said that, I had an engineer tell me there was pre existing damage on a renault 5 which was written off, I objected and the engineer conceded, and adjusted the value accordingly.
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was kev_is_here
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Cheap happy snap cameras should be kept in every car for such occasions.
Absolutely. Mobile phones with cameras that have a zoom function are pretty handy in this sort of situation, too.
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Yes perfectly fine to do this, and yes you need to have the thirdparty sign a statement to the effect that they agree. something like this:
I HARRY Bloggs of 34 Rainwater Crescent, Harrowgate. Agree to accept the sum of $$$ from Mr Charles Leroy-Smith of 45 Mushroom Street, Harrowgate, in full and final payment against damages to my car as a result of an accident which occured between Mr Leroy-Smiths car Registration XXXXXX and My own car Registration YYYYY. I understand that Mr Leroy-Smith Is not admitting Liability for the accident but that this in an Exgratia Payment.
Signed.........
witnessed (you).........
The last part is just to protect you incase they suddenly come at you with an injuries claim, so you can pass it on to your insurance company as a normal claim.
I did this myself and that is what I wrote for the guy to sign. We had agreed to settle the damages (to his car) 50/50 250 = 125 each. Subsequently I got a letter from HIS insurers saying I was liable for the claim and could they have my details please..... I sent them a photocopy of the signed statement and I heard nothing more from them, not even an apology (which is what I thought was appropriate).
Note: He had made a claim and stupidly told the truth, but failed to tell them he had allready settled with me (which is a criminal offence). Once he had decided to make a claim, he should have told the insurers he did the damage himself (hit a lampost or wall) what a dummy!
For small accidents I don't bother to inform the insurers, but this can cause problems. I once had a claim for an accident which I hadn't reported (over a year later). The insurers said they might not honor the claim. I told them the accident caused no damage, and had been reported to the police and they told me not to worry, so I had not told the insurer at the time. (this is another long story which I won't go into.) Result was my insurer took on the claim, and It went to court (injuries claimed) and we significantly reduced the amount claimed, claimant was paid 400 pounds because he was found to be 90% responsible for the accident. Me 10% responsible, a considerable success story.
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was kev_is_here
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You have to be very careful if you decide to keep quiet. Exctract from my policy (so handy to have it online)
6 You must call our Claims Helpline on 0800 xxx xxx (open 24 hours) as soon as possible, even if you do not plan to make a claim. We may send you an Accident Report form and tell you what to do next. This is a condition of your policy.
They can reasonably turn round and refuse to pay if you (or a third party) puts a claim in without them having heard from you.
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There's no such thing as an uninsured car, under MIB rules they will have to pay anyway. But not telling can lead to a headache later on, I haven't heard of such a case but I imagine your insurers could subsequently sue you for their losses to the MIB.
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was kev_is_here
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