What are non-fault claims and do they affect your car insurance?
If you’re in a car accident that wasn’t your fault, it’s natural to assume you won’t be left out of pocket - unfortunately non-fault claims are not always so straightforward. Here’s how they work and what you can expect if you need to make a claim.
Key Takeaways
Non-fault claims are when you make a claim on your car insurance policy for an accident that wasn’t your fault - normally when there is a liable party to blame
In these cases your provider may be able to recover the entire cost of the claim from the liable party
If there isn’t a liable party, for example if they’re unidentified or if the accident was caused by an animal - here you’ll be liable
What is a non-fault car insurance claim?
A non-fault car insurance claim is when you’re involved in an accident that isn’t your fault, where your insurer is ideally able to recover all the costs from the third-party that was at fault. Unfortunately if there is no responsible third party - for example, if the accident involved an animal, or it was a hit-and-run - then you’ll be considered at-fault.
How do I know who is at fault for a car accident?
Your insurer will generally decide who is at fault by conducting their own investigation, using evidence such as:
Camera footage, from CCTVs, dashcams, witnesses with mobile phones or even speed cameras
Your own evidence, including any photos you take of the scene
Statement from eye witnesses
Medical reports
Police reports
If you disagree with their decision you can make a formal complaint through your insurer, and if you still aren’t happy with the result you can go to the Financial Ombudsman Service. You’ll need a final response letter from your insurer before they’ll get involved.
Do I need to declare a non-fault accident?
Yes, you will need to declare any and all accidents you’re involved in, even if it isn’t your fault. In fact, most insurers have clauses in their policies that require you to inform them of any accidents you’ve been involved in for the last five years - if you don’t your cover may be invalidated.
Does declaring a non-fault claim affect my insurance premium?
Unfortunately, even a non-fault claim is likely to increase your car insurance premiums. This is because insurers are likely to view the circumstances of the claim as indicative of a high claim risk - for example, if you drive in high-traffic areas where accidents are more common.
Will I lose my no-claims bonus?
Unless you’ve protected it, it’s likely that even a no-fault claim will affect your no-claims bonus. It may be reduced or possibly wiped completely - so it’s worth considering protecting your discount to keep your premiums low.
Does my level of insurance affect my non-fault claim?
Your level of cover, whether it’s fully comprehensive or third-party only, shouldn’t affect your cover - all motorists are legally required to have at least third-party insurance in place.
If you have third-party cover: You should claim on the other driver’s insurance, and if they agree you weren’t at fault they should cover the cost of repairs, compensation and even a courtesy car. You should inform your insurer of the claim, although they shouldn’t need to get involved. However if they aren’t insured then you won’t be able to claim - so you should try to seek compensation via the Motor Insurance Bureau
If you have fully comprehensive cover: You should claim on your own policy. You’ll likely have to pay excess when you claim but your provider will try to recover this from the other side. If they don’t, however, you might lose your excess and your no-claims bonus. If you’re deemed to be at fault for the accident, you might be able to claim compensation through a fully comprehensive policy
Is it worth making a claim if the accident wasn’t my fault?
If the accident is not your fault, you need to establish whether you can get the other party to pay for the damage. Ideally, the liable party will cover the cost of repairs to your vehicle. But if they are uninsured, you will have to decide whether to claim on your own insurer.
If the damages are minor, you might decide it's not worth making a claim. This could be due to potential increases in your insurance premium or because the excess you have to pay is close to the cost of the repairs.
You may also be interested in adding cover for legal expenses to your car insurance policy, which can help cover the costs of pursuing a claim if the other party is uninsured or underinsured.
Do I pay excess?
When you're at fault in an accident and need to claim on your own insurance for damages to your car, you'll typically have to pay the excess. However, if you're claiming on someone else's insurance because they were at fault, or if a third party is claiming on your insurance, you won't need to pay the excess.
What if someone makes a claim on my car insurance premiums?
If someone makes a claim against your car insurance, it's likely to increase your premiums, although a non-fault claim will generally have a lesser impact than an at-fault claim. Your insurer will handle the claim process, but it's important to provide them with all the necessary information and cooperate fully to ensure the best outcome.
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Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Saarrah Mussa
Former Content Writer
Saarrah was a MoneySuperMarket's in-house pet insurance expert. With broad experience writing across insurance products Saarrah is acutely aware of the complexities and costs consumers have to face...
