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:
Accident Management services are the most beneficial choice If you have been in an accident that wasn’t your fault. Speak to one of our non-fault accident experts today on 0330 128 1407 or begin your claim process by clicking here.
Generally, insurance providers say that ‘a claim may reduce or remove a driver’s No Claims Bonus’ even if a claim is processed directly through the driver’s insurance policy who was not at fault
There are many reasons why your No Claims Bonus could be affected when claiming with your insurer, including:
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:
One
15%
Two
16%
Three
17%
Four
18%
Five
18%
Six
18%
Seven
18%
Eight
18%
Nine
27%
(This table is referenced from an external data source, Admiral, and does not necessarily represent all insurance providers throughout the UK.)
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.
Speak to a Non-Fault Claim Specialist
We manage everything on your behalf, ensuring that the claims process is as smooth and stress-free as possible.
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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
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: 18%
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: £820
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:
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.
Auto Claims Assist
First contact after a car accident
Our team of non-fault claim specialists are ready to answer any questions you have. Provide your details here to request a callback. One of our advisors will call you back as soon as possible. Alternatively, call us on 0330 128 1407 to speak to someone now.
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