Key takeaways
- A non fault accident doesn’t automatically increase your insurance premium but providers may see you as a more risky driver when it comes to renewal, which can push up your insurance costs
- A Protected No Claims Discount does not guarantee your premium will stay the same
- You should report accidents to your insurer even if you were not at fault.
- Shopping around at renewal may help reduce insurance costs after a claim.
- An accident management company may help you avoid having to pay an excess, subject to eligibility, and reduce the stress of a non fault insurance claim.
Liability is an important factor when it comes to car insurance claims.
Incidents are usually split into at-fault and no-fault claims.
If you weren’t at fault, your insurer will usually recoup the costs from whoever caused the accident.
If you are wondering "will a non fault accident affect my insurance in the UK?" your future insurance policy premiums may still go up even if you aren’t to blame.
Another option is to use a car accident management company instead of claiming on your own policy, although this won’t necessarily limit any insurance increase.
What is a non fault accident?
Fault is an important factor when it comes to car accident claims.
If you are at-fault in a car insurance claim, then your insurer will need to pay up but if you didn’t cause the accident then you may need to file a no-fault claim.
A non fault accident typically involves injury or damage to your vehicle that was caused by someone else such as if they drive into the back or side of your car.
The first issue may be getting the other driver to admit liability for a car accident claim and you may need evidence and witnesses to prove your claim and that you weren’t at fault.
If it is clear that you are not at fault then your insurance provider will recoup any costs of repairs back from the other party’s insurer.
You may still have to pay the excess for any repairs but you should get this money back.
Insurers also make a distinction between the everyday language of blame and official insurance rules on liability when considering who pays out.
This can cause issues for motorists as your issue may be registered as a fault claim rather than a non-fault accident.
For example, the Financial Ombudsman Service (FOS) highlights that a driver may not be to blame if someone drives into their parked car and can't be found but they will still be liable for the damage if they make a claim for repairs [1].
Additionally, an insurer may accept liability for a car accident claim even if you are not to blame.
The FOS said: “It may mean they’ve considered the evidence and decided to pay out, rather than fight a claim they think they might lose in court.
“Most policies say the insurer can decide to accept liability. But we often find they haven’t always explained this to the customer.”
How much does a non fault claim affect my insurance?
One of the biggest fears of making a car accident claim is that your premiums will increase when you come to renew your policy.
Even if the cost of repairs is recovered, an insurer can still record the incident on the driver's claims history.
That can be even more frustrating if you weren’t at fault for an accident.
Annoyingly an insurance increase non fault accident can still happen, particularly causing a future premium upsurge.
MoneySuperMarket explains that this is because an insurer is likely to view you as at “higher risk of an accident.” [2]
If your premium does go up at renewal, that provides a good time to shop around for a new deal, although you will still need to disclose information about the premium increase accident and the claim.
Why can premiums increase after a non fault accident?
Insurers consider a range of factors when pricing insurance and deciding a premium.
These include claims history and any previous accidents.
Other issues can also cause your premiums to rise regardless of a non fault accident such as market conditions, the cost of repairs, your location and type of vehicle as well as the insurer’s overall pricing.
Does a non fault claim affect your No Claims Discount?
In some good news, your no claims discount may not be affected with a non-fault claim.
But there may be a temporary issue. CompareTheMarket explains: “When you make a non-fault claim, your no-claims bonus could be affected while your insurance provider investigates who’s at fault [3].
“But this is different if they confirm that you’re not liable and they’re able to fully recover their losses from the other provider. If that happens, your full no-claims bonus can be reinstated.”
You could lose your no claims discount though if you are found to be at fault or liable for an accident.
This is why it can be worth paying for a protected no claims discount so that it won’t be reduced even if you make an at-fault claim.
Bear in mind though that protecting a discount does not guarantee your premiums will stay the same as these are two different parts of your insurance.
Do you have to tell your insurer about a non fault accident?
It may be tempting to not tell your insurer about an accident, especially if the other party agrees to pay for any repairs themselves.
But whether you are at fault or not, confused.com warns that you may put your policy at risk by failing to declare an incident [4].
The comparison website said: “Most insurers require you to declare all incidents from the past five years. Check your policy, as this timeframe can vary.
“If you don't declare an accident and your insurer finds out, they could cancel your policy.”
GoCompare highlights that disclosing an accident can protect you from dishonest claims made by the other driver [5].
If you don’t want to claim, GoCompare suggests making it clear to your insurer that your report is for “information only.”
Can you reduce the impact on future premiums?
While a non-fault claim can push up your premium, there are steps you can take to limit the increases.
A common tip is shopping around, especially as your current insurer may offer a discounted renewal deal to stay.
Another way to reduce your premium is to offer to pay a higher excess in the event of a claim. The Association of British Insurers explains: “This could reduce your premium, but it means you will need to pay more upfront in the event of a claim.” [6]
You could also check and reduce your declared annual mileage if it is too high or consider switching to a vehicle that is cheaper to insure.
How accident management can help after a non fault accident
Dealing with insurance companies can be stressful, especially if you are still recovering from an accident or are dealing with the stress of a damaged vehicle.
This is where an accident management company can be a helpful alternative.
An accident management company can help with the stress and the strain of the aftermath of a non fault accident.
As an alternative to claiming through your insurer, an accident management company may be able to arrange vehicle recovery, repairs and replacement vehicles if needed, subject to eligibility.
If you are not at fault, you may not have to pay upfront, depending on liability and eligibility, as fees are usually recovered from the liable insurer where liability is accepted or established. If costs can’t be recovered, you could become responsible for some or all charges. The accident management company can often help with any insurance paperwork required. You may also avoid paying an excess to your insurer, although this isn’t guaranteed.
Even with all this help, you will still need to disclose the accident for your insurer’s record.
Sadly, an accident management company won’t have any influence on your future insurance premiums as a result of making a claim or reporting the accident to your insurer.
Common myths about non fault accidents and insurance premiums
A non fault claim never affects premiums
Annoyingly, being involved in an accident regardless of fault makes you more risky for an insurer, which can push up premiums
If the other insurer pays, my insurer ignores the accident
Even if you aren’t liable and the other driver’s insurer paid out for repairs, any issue will still be recorded on your claims history.
"Protected No Claims Discount means my premium cannot increase."
Your no claims discount is treated differently to your premium. Even if you no claims discount is protected, the insurance premium is set based on a range of risk factors including previous claims history and any recorded accidents.
"I don't need to tell my insurer.”
Most insurers’ terms and conditions require you to disclose any accidents or claims from the past five years or you may void your policy.
FAQs
Will my premium definitely go up after a non fault accident?
It may go up, depending on your insurer, claims history, renewal pricing and wider market conditions after a non fault accident if you have made a claim as your risk has increased. Several factors can affect how much will car insurance go up after a claim.
How long does a non fault accident stay on my insurance record?
Any claims or accidents stay on your insurance record for five years for many insurers, but it is better to check your policy wording.
Does a non fault accident affect all insurers the same way?
Each insurer will have their own claims handling, underwriting and risk management rules. This is why it may be worth shopping around when it is time to renew after you have made a claim as premiums and risk assessments can vary across different providers.
Should I tell my insurer if I don't claim?
It can be a requirement of an insurance policy to inform them of any accidents if you don’t claim. Failing to disclose an incident could mean losing your cover and make it harder to get insurance elsewhere.
Will using an accident management company affect my premium?
Using an accident management company may affect your premium even if you haven’t made a claim. This is because once the accident is reported on the insurer’s records they may see you as a higher risk driver. There may also be other factors that push up your premium anyway such as your age or the current market.
Can I shop around after a non fault accident?
Your insurer may recommend garages for repairs in a non fault accident but there is nothing stopping you shopping around for better deals.
Similarly, you can shop around for a new insurance deal at renewal if your premium has increased as a result of a non fault accident.
Ultimately a non fault accident still needs to be reported to your insurer even if you decide against making a claim.
The good news is that your no claims discount may be reinstated if you are found not to be at fault and your insurer recovers its costs.
An alternative option is to use an accident management company to arrange repairs, subject to eligibility, with costs sought from the liable insurer where liability is accepted or established.
Whichever route you choose, you need to disclose any accidents from the past five years to your insurer.
This can impact your insurance premium, even if it is a non fault accident. This isn’t guaranteed and the premium may vary across providers but you will be seen as a higher risk once you have been in any sort of accident or involved in a claim.
You can keep costs down by comparing other providers or amending your agreed excess.
Consider Professional Help
Accident management brand Claimsline can explain the options after a non fault accident and, where appropriate and eligible, arrange support with the practical aspects through working partners such as a recovery company, repairer or hire company. Where liability is accepted or established, the hire company or repairer seeks the charges from the at-fault insurer.
This may include helping arrange recovery of your vehicle and repairs. You may even be able to choose your own garage.
Claimsline can also help drivers understand the claims process, and its working partners such as a recovery company, repairer or hire company may speak to insurers and other relevant parties where needed, especially if there are disputes about liability.
This can reduce some of the stress of making a claim through your own insurer. You may still need to notify your own insurer, depending on your policy terms. If you are not at fault, the financial and legal obligation rests on the at-fault insurance company where liability is accepted or established.
Support depends on your circumstances, liability and eligibility, and outcomes aren’t guaranteed, but it may help you focus on recovering from the accident or getting your car repaired.
Claimsline is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activities (FRN 831196).
Sources
- the Financial Ombudsman Service (FOS) highlights that a driver may not be to blame if someone drives into their parked car and can't be found but they will still be liable for the damage if they make a claim for repairs - https://www.financial-ombudsman.org.uk/consumers/complaints-can-help/insurance/motor-insurance/fault-claims-no-claims-bonuses
- MoneySuperMarket explains that this is because an insurer is likely to view you as at “higher risk of an accident.” - https://www.moneysupermarket.com/car-insurance/non-fault-claims/
- CompareTheMarket explains: “When you make a non-fault claim, your no-claims bonus could be affected while your insurance provider investigates who’s at fault - https://www.comparethemarket.com/car-insurance/content/do-non-fault-claims-need-to-be-declared/
- But whether you are at fault or not, confused.com warns that you may put your policy at risk by failing to declare an incident - http://confused.com
- GoCompare highlights that disclosing an accident can protect you from dishonest claims made by the other driver - https://www.gocompare.com/car-insurance/guide/non-fault-claims-and-accidents/
- The Association of British Insurers explains: “This could reduce your premium, but it means you will need to pay more upfront in the event of a claim.” - https://www.abi.org.uk/policy-and-guidance/general-insurance/personal-insurance/motor-insurance/reducing-the-cost-of-motor-insurance
