Standing the cost of a car crash vs motor insurance claim?

November 28, 2017 · Posted in FAQ 
motor insurance
Wayne H asked:

My son recently had a motor accident, we intend to stand the cost of a replacement car (insurance premium would rise a further £2000 for the following year).

Do we have to inform the insurance company of the accident and if we do will this have an impact on his insurance considering the we stood the cost and didn’t claim?

The current insurance company seem unwilling to answer the question fully and an independant insurance broker was of little help too. Please help!

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12 Responses to “Standing the cost of a car crash vs motor insurance claim?”

  1. mike-from-spain on May 16th, 2010 7:26 am

    yes, you MUST inform the insurance company, failure to do so would invalidate the policy. You just tell them what happened, and that you are not going to make any claim.

  2. TallPaul on May 17th, 2010 11:03 am

    As I assume your insurance company already knows about the accident, then they will put the premium up regardless.

  3. RRM on May 18th, 2010 3:24 am

    If you’re not going to make a claim then I don’t see what it has to do with the insurer.

    The reason for insurance is to transfer a risk, in this case from your son to the insurer, however, if you make no claim and intend to replace the car from your own pocket it has absolutely bugger all to do with the insurer.

  4. Barry Von Leotard III on May 19th, 2010 12:59 am

    If you don’t claim it does not affect your premium. They don’t need to know.

  5. cbr1000rr on May 20th, 2010 8:58 am

    bmw will pay off youre car and give you a nother new car but you still have to pay for it however you only pay what you owed on the other and notthe full price

  6. Greed_2.0 on May 23rd, 2010 8:36 am

    Depends, in some places third party insurance rates differ from collision insurance rates.

    That being said, one covers your damages and the other for things you damaged.

    If the claim is deemed 0% liable it should not effect your rates.(ie not your fault — but note most providers ALWAYs want a 50/50 of 80/20 split to raise everyones rates…)

  7. proud walker on May 24th, 2010 12:31 pm

    ALWAYS inform the insurance company. They get very tetchy if they find out you haven’t. My daughter had a total loss. They paid for recovery (it was burned out) but we didn’t claim on our insurance and we didn’t loose any no claims

  8. noeusuperstate on May 24th, 2010 4:34 pm

    If the accident was not reported to the Police and your son is not likely to face any charges(perhaps it was not his fault for eg) then you need not say anything to the insurance company as there is no official record.
    If however, there is a record (the other driver may claim on their insurance if they were at fault and have fully comp) and you are asked when re insuring if you have been involved in an accident in the last 5 years etc. then you will risk invalidating your insurance by not disclosing.

    The issue is not the cost or the severity, it is whether there is a formal record with the police or an insurance company.
    Technically you should still advise concerning the event, I am sure any solicitor would advise you to do so as there will be records from repairers.

    It is a risk factor, if you think your son is likely to be involved in other incidents then you must remember the potential for prosecutors/solicitors finding out about the incident and using it in a future court case.

    How unlucky was your son?
    How much was it his responsibility?

    No disrespect intended but is he at the age of more testosterone than brains?

  9. betty m on May 25th, 2010 12:41 am

    if your son was not at fault then there is not a surcharge to your policy for the incident. if he was at fault then your insurance compnay took care of the claim and then you will feel the surcharge. you do not need to inform your company of the loss.

  10. Colin M on May 26th, 2010 7:15 pm

    You’re required to advise the insurers of any material facts. When you report it, make it plain that you are reporting “for information only” and that you are not making a claim. Then it will not affect his “no claims” discount.

  11. welcome news on May 29th, 2010 9:54 am

    It is normally a policy requirement that all incidents that could give rise to a claim be reported to the insurance company even if a claim is not being made at that time. I suggest you read the policy wording.

    If you don’t intend to make a claim the details should be submitted for ‘information purposes only’ in which case the no claims bonus will not be lost following this incident.

    I assume that there are no other vehicles or people involved and no one else has suffered loss or damage as a result of you son’s negligence. If this is the case then you might as well claim for the material damage as the insurance company will pay the third party’s costs and disallow the no claims bonus anyway.

    The fact that your son has had an accident, even if a claim is not made could very well affect the insurance premium – as he has shown that he can have accidents. Failure to declare this incident at any future period could very well result in your son’s insurance policy not protecting him in the event of a further incident – this time it’s £2000 – next time it could be £200,000.

  12. namrepus on June 1st, 2010 12:51 pm

    Well dont depend on them, you can find some other relevant information if you will search it on the net, seek some guidance to the insurance company and im sure they will help you try to visit this site I hope you can collect information about your problem. Goodluck

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