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.
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 USWICH.
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.
(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.)