Fault and no fault claims – think you know the difference?
You might think the difference is obvious and it’s true that no fault claims are what you expect them to be – they’re claims made where the liability (or fault) lies completely with someone else. For example, if your car was stationary and another driver backed into it – they are at fault. When you tell your insurance provider about what happened, they’ll try and recoup the costs of any repairs to your vehicle from the person whose fault it was. If they’re successful in getting all the costs back, your insurance history will record this as a ‘no-fault’ claim.
Fault claims on the other hand work in two ways. First – the most obvious way – where an incident is completely your fault and there’s clearly no denying it. Secondly, a fault claim could be attributed to you if your insurance provider can’t find anyone else to blame – such as if your car’s been vandalised and the culprits are no-where to be found or if your insurance provider can’t get back all the costs associated with repairs.
Whilst you’re shaking your head at the unfairness of it all, insurance providers have evidence that shows those who make a no fault claim are statistically more likely to make another claim in the future .