The claim process explained

Why do I need to tell my insurance provider about an accident if I don’t want to claim?

Personal injury claims can be made against you years after you have an accident, so notifying your provider means they can be prepared. It also means that your insurance provider won’t compensate a third party without your knowledge.

Is there a car accident claim time limit?

You should tell your insurance provider about your accident (whether or not you want to make a claim) within a reasonable amount of time. The definition of ‘reasonable’ will be set out in your policy documents.

Some insurance providers expect to be told within two days, while others will give you two weeks. Stick to whatever your policy states, as not doing so could invalidate any claim you make.

Why would I not make a claim on my insurance?

You might decide that you’d be financially better off paying for any repairs yourself. This could be the case if you stand to lose some (or all) of your no claims discount, which could impact on the cost of your insurance at renewal.

And if the repairs to your car are likely to cost less than your excess, your insurance provider will probably expect you to sort out paying for any damage yourself.

How do I tell my insurance provider about an accident?

Give your insurance provider a call – some of them have dedicated claim lines. Make a note of what you want to say, so that you don’t forget to tell them anything. You’ll probably be asked to complete a claim form detailing the accident. Include any photos you have as these will back up your statement and show any damage first-hand.

Your insurance provider may ask that you have your car repaired in an approved garage, so don’t do anything until you’ve spoken to them. Getting your car fixed in an unapproved garage could mean your insurance provider decides not to pay out.

If you decide you don’t want to make a claim when you tell you provider about an accident, make this very clear and back it up in writing. Send a letter or email stating that the details you’re providing are for information only.

Will making a claim affect the cost of my insurance?

Making a claim could affect your insurance. Even if the accident wasn’t your fault, if you make a claim and your insurance provider can’t recoup all the costs from another driver’s insurance provider, your premium is likely to rise as a result of the claim.

And even if you don’t make a claim you could see an increase in your insurance. That’s because some insurance providers have statistical evidence to show that those drivers who have had an accident (even one that wasn’t their fault and they didn’t claim for it), are more likely to be involved in another accident later on.

Will making a claim affect my no claims discount (NCD)?

If you’ve protected your no claims discount, then making a claim shouldn’t affect the number of years that contribute to your NCD. However, your car insurance premium could still increase, and that’s because your insurance premium is calculated before your NCD is applied. So, if you’ve had an accident, the basic cost of your premium is likely to go up.

Your NCD is applied after that premium is calculated, so although your NCD discount remains the same, the actual cost of your premium has risen – resulting in an overall increase.

If you haven’t protected your NCD, making a claim for an accident that was your fault will certainly affect your NCD years.