Do I lose My No Claims if it is Not My Fault?

M.TaimooR
August 15, 2024
Accidents and Claims
do i lose my no claims if it is not my fault, loss of no claims, no claims

When drivers go a year without making a claim, even if they are non-faulty, they earn a no-claim bonus from their insurance company. This bonus is a reward for safe driving and is the opposite of an at-fault claim, which is a claim you make when you are responsible for an accident.

The no-claim bonus is one of the easiest ways to lower the insurance premium cost. The concern is what happens to your no-claim bonus if the car accident is not your fault.

Unfortunately, you can lose your no-claim bonus even if the accident is not your fault. However, you can save this bonus in alternative ways, such as hiring a professional accident claim management company. Continue reading to get the answer to your questions related to no-claim bonus or compensation in detail.

What is a No-Claim Bonus?

A no-claim bonus is what you get as a reward if you are not entitled to make any claim throughout the year from your insurance company. However, losing the no-claim bonus is as much more accessible as it is challenging to build it up.

As a driver, you can make a huge difference in your insurance premium by securing your no-claim bonus. However, saving your no-claim bonus is entirely up to you, especially if you have had a non-fault accident.

Think Wisely: Hire an Accident Claim Management Company

If the accident was not your fault, hiring an accident claim management is one of the best ways to preserve your no-claim bonus. Indeed, it would be best to rely on an accident management claim company to process your claim rather than contacting your insurance firm even after a non-fault accident.

Most drivers think contacting their insurance company after a non-fault accident is the safest choice. However, this is wrong, especially if you want to save your no-claim bonus. Calling your insurance firm is okay only if the accident was your fault.
In short, processing the claim after a non-fault accident through your insurance company ultimately risks your no-claim bonus.

Why Should I Process My Claim with an Accident Claim Management Company?

When you choose an accident claim management company such as Continental Car Hire to proceed with your non-fault accident insurance claim, they work directly and independently with you.

This way, you can save your yearly rewards and no-claim bonuses without bringing your insurance policy into the overall process.

Besides keeping your no-claim bonus, you can also get the following benefits when you choose an accident claim management company to process your non-fault accident claim:

There is no need to pay the excess amount for claim processing.
There is no effect on your no-claim insurance bonus.
Accident claim management companies work independently.
If your car is undrivable or unroadworthy after a non-fault accident, you can also request credit hire or like-for-like vehicle replacement.
Instant vehicle recovery and storage until the repairs have been done.
You are not entitled to pay for anything, as the faulty party insurance company will pay for all as compensation.

So, hiring an accident claim management company is highly beneficial if you have been involved in a non-faulty accident rather than contacting your insurance company.

Does the Level of Insurance Affect the No-Claim Bonus?

If the accident was not your fault, it will also not affect your insurance payout. However, it will affect your no-claim bonus and overall claim process. You can claim directly against the other driver’s insurance company if you have third-party insurance coverage. Suppose the accident was entirely not your fault. In that case, the faulty party insurance company will be responsible for providing you with a replacement car, for all repairs and other compensations such as personal injury.

However, you cannot claim directly if the other driver is uninsured. You must claim through MIB (Motor Insurance Bureau) in this scenario. If you have a comprehensive insurance cover, you can contact your insurance company for a claim with maximum compensation. However, you’ll only need to pay for your insurance policy excess if you claim through your insurance company rather than an accident claim management company.

How Much Discount Can I Get for a No-Claim Bonus?

If you are a non-faulty driver, processing your claim directly through your insurance company will remove your no-claim bonus altogether.

Here are a few reasons that indicate why your no-claim bonus completely vanished even if you are a non-faulty and process your claim directly through your insurance company;

The claim is still a liability even if you are not at fault.
Your insurance company cannot pay for all costs of repairs and other compensations due to a non-fault accident.
Your no-claim bonus is calculated partly at fault even when you are a non-faulty and process your claim through your insurance firm.
An insurance company cannot recover all compensation from another driver’s insurance company.

For an insurance company, it doesn’t matter whether an accident was your fault or not. That’s why it is sometimes unfair for non-faulty drivers to process their claims through their insurance firms, as their no-claim bonuses will vanish completely.

That’s why it is always recommended that you process your claim through an accident claim management company, especially if you are not at fault, to protect your no-claim bonus.

Why Do I Need to Protect My No-Claim Bonus?

As a driver, you can get yearly discounts on your insurance cover renewal when you protect your no-claim bonus. A sudden or unexpected loss of a no-claim bonus may affect you in the long run at the time of insurance cover renewal, as you may need to pay higher as a penalty even if the accident was not your mistake.

Besides this, losing your no-claim bonus means high insurance coverage costs at renewal, even after a non-fault accident. So, initiating your claim directly with your insurance company, even after a non-fault accident, is not wise.

Make a Claim with Continental Car Hire And Save Your No-Claim Bonus

According to legal requirements and standards in the UK, the time limit to file a claim for personal injury compensation after a car accident is three years. However, this time will be calculated further on from the date of the accident.

If the affected person is a child, this time limit will start once the kid has reached his 18th birthday. So, a non-faulty driver can claim and fight for compensation once he is mentally ready or has recovered from the accident.