How does a non-fault claim affect your insurance?

Not all car insurance claims are the same — if you've had an accident that wasn’t your fault, this could be considered a non-fault claim. 

Non-fault claims are handled differently to other car insurance claims.

A non-fault claim is when another driver is involved and has complete liability for the incident. Maybe they pulled out at a junction and hit your car, or they hit you from behind while your car was waiting at traffic lights

In a non-fault claim, your insurer will attempt to recover any repair/replacement costs from the other driver’s insurance company.

But - and it is a big but - if your insurer can’t recover the costs from the guilty party, for example in the case of vandalism or a hit and run accident, the claim may be considered as a fault claim even though you were not to blame for the incident.

In many cases a non-fault claim will increase the cost of your car insurance, but it shouldn’t have as much of an effect as an at-fault claim. If you make a non-fault claim, it’s possible you’ll lose some or all of any no-claims discount you’ve accrued over the years. If you have chosen to protect your no-claims bonus, it won’t be affected.

It may come as a surprise that you’d lose your no-claims discount for an incident that wasn’t your fault

If you do lose some or all of your no-claims bonus, you will notice an increase in your car insurance premiums:

Yes you must declare a no-fault accident, even if the other driver offers to pay for any damage in full and you make no claim on your insurance. If you switch car insurance providers you will be asked your claims history.

Car insurance claims can take a couple of months to process. Before your claim is settled, you will be considered to be at fault as your insurer may still be investigating the circumstances.

Yes, you may need to claim this back from the insurance company of the driver who caused the accident once the claim is settled, if you don’t have legal expenses cover to pay this for you. 

Case study: Isabella, 45, Cambridge

In December 2018 I was driving home from London in the dark when my car hit something. Within a mile my oil was leaking and I realised there had been some serious damage to my car.

I had to call my insurance company’s breakdown cover to come and pick up myself and my then four year-old daughter.

We went back to the scene of the accident and found that I had gone over the base of a bollard, the bollard itself had obviously been damaged and removed otherwise I would have seen it. My husband Andrew and I could see other cars had suffered the same fate.

I called my insurance company who suggested I make a register claim with the local authority who manages the roads.

We took pictures of the site and explained what must have happened.

It’s taken two years to get my money back and get my premium reduced back to the same level. In the meantime I got a new car, and had to insure that. Even though it was a smaller car with a much smaller engine I paid £15 more a month in premiums. So £55 instead of £40 previously.

Doing the claim was worth it as I was able to get my insurer to reduce that premium, giving me back £180 a year.

If you’ve made a non-fault claim, there are general measures you can take to reduce the cost of your car insurance when it’s time to renew your policy.

These include:

If you’ve lost some or all of your no-claims bonus as a result of a non-fault claim, consider protecting it when you take out a new policy.

A credit hire company pays for the cost of you hiring a replacement vehicle while yours is being fixed and pays for the cost of repairs. 

The company then claims back these costs from the insurance company of the other driver who is at fault.

Using a credit hire company means:

Your insurance company will need to know about the accident for their information, even if you don’t claim through them. 

The credit hire company may offer to contact your insurance company for you, or ask you to let them know.

Experienced drivers and have a good driving record can still get a good deal on their insurance. If you are not an experienced driver you can cut car insurance costs by adding a named driver who is older and more experienced to the policy. 

Taking a Pass Plus course if you are a new driver may also reduce your premiums but you will need to check with the insurer first.

Having a car with is the type of car you drive, with the car’s speed, security features, and value all playing a big part in increasing the cost of your insurance.

This will result in a cheaper monthly premium. Before you take out car insurance make sure you can afford any voluntary excess. This excess is in addition to the compulsory excess set by your insurance provider. This is what you would have to pay if you ever have to claim. 

Pay for your insurance in one go if you can. Spreading the cost of your car insurance over 12  monthly payments may seem cheaper but remember you will be paying interest on top of the amount you pay towards your car insurance premium.    

Limiting your miles makes you less of an insurance risk. Simply because you are reducing your risk of having an accident. When you take out your car insurance policy the insurer always asks for an estimate of your maximum annual mileage. You need to try and you’re your mileage low, although you need to be realistic as to how much you will drive. 

Having an alarm or immobiliser is considered a theft deterrent and by deterring car thieves you can reduce your car insurance. Not all insurers will offer this, so check first.

Black box, or telematics, insurance can help reduce your car insurance over a period of time. 

A small device, the black box is installed in your car.