‘Do I lose my no claims if not my fault?’ – Accident questions answered.
A common question searched online after an accident is ‘do I lose my no claims if not my fault’ and the unfortunate answer to this question is… Yes, you may lose it. However, you may be able to avoid losing it.
A person’s no claims bonus is something that takes years to build up but only a moment to lose.
A long-standing no claims bonus can make a huge difference to a driver’s annual car insurance premium. Some insurers can offer NCB discounts of up to 75% on an annual premium.
Naturally, it’s a driver’s priority to protect their no claims bonus; especially if they’ve been in an accident that wasn’t their fault.
There are multiple factors that contribute to whether someone may lose their no claims bonus after an accident that is not their fault. It also depends on your individual scenario and which insurance company you are with.
However, if you were not
the at-fault party,
there is a way to help ensure that the safe keeping of your No Claims Bonus doesn’t come down to chance: Choosing to work with an Accident Management Company rather than processing the claim through your own insurance company.
Continue scrolling for more information. Below is an extensive
guide on ‘Do I lose my no claims if not my fault?’.
Making the more beneficial choice after an accident.
Lots of people believe that the first thing that you need to do after an accident, whether it is your fault or is not your fault, is to call your own insurance company.
This is only correct if the accident was your fault.
It is not the most beneficial first step to take if the accident was not your fault.
By calling your insurance company after a non-fault accident, you are potentially initiating the claim process directly onto your own insurance policy. By doing this, you put your own no claims bonus at risk.
If you choose to work with an Accident Management Company such as Auto Claims Assist, we work with you to process the non-fault accident claim directly to the at-fault driver’s insurance provider.
This avoids the need to bring your own policy into the claim process; protecting those well-deserved yearly discounts.
By working with an Accident Management Company, you’ll also receive a series of other non-fault driver benefits that you wouldn’t receive if processing the claim through your own insurance company, these include:
- You will not need to pay an excess for the claim
- There is no risk to your insurance premiums
- Your accident is managed from start to finish by non-fault accident professionals
- We act as an independent expert who is on your side
- You can receive a comparable vehicle replacement on the same working day that you contact us
- Access to a 400+ garage repair network which includes manufactured-approved repair centres
- Best of all… there’s no cost to you for the entire service – we claim back all of the costs from the at-fault driver’s insurance policy
There are many reasons why your No Claims Bonus could be affected when claiming with your insurer, including:
- The claim liability is still ongoing and your insurance policy comes up for renewal. Your insurer may remove the NCB at least until the claim is concluded, if not indefinitely.
- Your insurance company is unable to recover all of the costs and expenses from the other insurance company (this can happen for many reasons).
- The fault liability did not conclude solely on the other driver in the end and your claim is concluded as partly at fault.
- Your insurance company is simply unable to recover their losses from the other driver.
Unfortunately, a ‘No Claims Bonus’ is not looked at as a ‘No Blame Bonus’.
When you initiate a claim with your own insurance company, circumstances can mean that it doesn’t matter if the accident wasn’t your fault. As the claim is being managed by your insurance company, it can be too late at that point to get better, independent, non-fault advice.
As the non-fault driver, this isn’t a fair outcome from a situation that you didn’t cause. This is why we strongly recommended that you work with an Accident Management Company if you’re in this predicament.
Here is an average example of how insurance providers calculate a no claims bonus discount from your years of no claims:
|No Claims Bonus Years||Average Insurers Premium Discount|
As a driver builds up their discount for every successful year without a claim, the reduction on an annual insurance premium provides significant savings.
For someone to lose the entirety of their No Claims Discount based on an accident that was not their fault could cause an unexpected and drastic financial penalty.
If you would like to speak to one of our non-fault accident experts about a non-fault accident that you have been involved in, give us a call now on 0330 128 1407. Alternatively, you can request a callback from us and we’ll be in touch shortly
As well as losing your no claims discount, your insurance may also go up on your next insurance renewal after a non-fault accident.
In addition of a reduction in your no claims bonus, your insurance provider may also increase your annual premiums on your next renewal after a non-fault accident if you choose to initiate your claim directly with them.
How your insurance
could go up.
For more information on how your insurance could go up after a non-fault accident, we have detailed article here with all of the possible increases you may face if you make your claim directly with your own insurance company rather than with an accident management company
Claiming directly with your own insurance company places a ‘pending claim’ onto your policy. If your next renewal comes around with the claim still in progress, this pending case is essentially classed as non-concluded.
Some providers deem this as the same risk level as an ‘at-fault’ case.
This is because, until the liability is accepted by the at-fault driver’s insurance provider, your own policy may yet potentially be liable for some, if not all, of the costs.
This increase can be anything from 20%-50% according to research undertaken by USWITCH
As each year’s insurance premium is calculated on risk, this may cause your next premium to be increased by up to this much.
You can avoid this increase completely by working with an accident management company
By choosing not to initiate the claim with your own insurance,
the process doesn’t include a claim initiation on your own insurance policy. Auto Claims Assist, as your Accident Management company, only claim directly on the at-fault driver’s insurance policy.
Here is a generic example of how your insurance policy could be affected if your no claims discount was reduced while your claim was pending when your next renewal came about.
|The previous year's policy premium:||Your next policy’s premium during a pending non-fault claim with a 2-year NCB reduction:||Your next policy’s premium during a pending non-fault claim with a full NCB reduction:|
|Policy premium before a NCD reduction:||Policy Premium + 50% accident claim increase:||Policy Premium + 50% accident claim increase:|
|Premium quotation before bonus discount: £1,000||Premium quotation before bonus discount: £1,500||Premium quotation before bonus discount: £1,500|
|Five years no claims discount bonus: 27%||Five years no claims discount reduced to Three years due to claim (minus avg. two years): 17%||Five years no claims discount reduced to zero years due to claim (Full NCB wipe out): 0%|
|Your total policy quotation before the accident claim: £730||Your total policy quotation after the accident claim: £1,245||Your total policy quotation after the accident claim: £1,500|
(Please Note: The insurance costs in this example are not based on any particular data and do not represent any particular insurance company or policy. The discount rate estimates in this example are based on average external source data and should not be used as factual guidance for your insurance policy or no claims bonus. All insurance providers have their own process, terms and conditions. This table does represent the facts of your insurance provider or policy.)
If you’re concerned and searching ‘Do I lose my no claims if not my fault’, this is how you can make a non-fault insurance claim and avoid losing your no-claims bonus.
Like many, you may be searching do i lose my no claims if not my fault after you’ve been involved in a non-fault accident.
Knowing what to do in a car accident is not always everyones area of expertise. The most beneficial first point of contact after a ‘no fault’ accident is always Auto Claims Assist.
In order to avoid the risk of losing your no claims if the accident was not your fault:
- Call our non-fault New Claims team on 0330 128 1407 or begin your claim by clicking here.
- We will collect as much information about the accident, including any evidence you collected.
- You will be provided with a dedicated claims handler for your accident claim who will be with you every step of the way.
- Our accident expert teams will then begin processing and managing your claim, keeping you updated throughout.
How else might a non-fault accident affect my insurance?
A driver’s insurance can be affected in other ways after a non fault car accident in the UK.
These effects are usually if a driver chooses to speak to their insurance company to process a claim instead of a Credit Hire Company.
We’ve developed a knowledge base of car accident resource which includes how a non-fault accident can affect my insurance.
If you have any questions after a road traffic accident or would like some general advice about our services, please feel free contact us and our team will be ready to help.