According to a relatively recent report by the AA in 2014, innocent motorists are being charged more money for car insurance if previously involved in an accident that wasn’t their fault. Hold on a minute, not their fault you say? Yes, you read that right!
In fact, drivers that made one non-fault claim on their cover were quoted 30 per cent higher premiums by a small number of insurers. For drivers with two non-fault claims, the price was 10-50 per cent more than those with none.
To discover this information, the AA posed as an everyday driver and searched for quotes on Compare the Market. “We compared a driver with no no-fault claims with one having suffered one no-fault claim and one who had suffered two no-fault claims,” noted AA spokesman Ian Crowther.
Although this may seem to be, at least on the face of it, a rather covert way of going about finding out the real nitty gritty details of what has been, and still is, happening the research has paid real dividends as you will see if you continue reading!
But why do guilt-free motorists have to pay more for somebody else’s negligence? And how can you avoid the extra cost of a non-fault accidents claim?
The cost of non-fault claims
Drivers with one no-fault claim will be pleased to hear that approximately 60 per cent of insurers applied no loading to the premium at all. However, around 35 per cent applied an average load of 5 per cent, while a further 5 per cent of insurers applied an average load of about 30 per cent.
But things are very different if you have two no-fault claims, as just 4 per cent of insurers did not charge more. Around 5 per cent applied loadings of up to 10 per cent, but the rest applied loadings between 10-50 per cent.
The reason for hefty premiums
Insurers say that even if drivers are not at fault, statistical evidence shows they will be more likely to be involved in an accident later on. “In many cases no-fault claims can be a proxy for the environment in which you drive,” said Adrian Webb, a spokesman for esure.
“For example, you may drive through certain awkward junctions, an accident black spot, or be in a certain postcode that suffers from poor signage, all of which puts drivers at risk.”
Ways to minimise increases
Irrespective of whether you have ever been involved in an accident that wasn’t your fault and subsequently claimed on insurance, the following tips can often result in cheaper premiums.
- Increase your voluntary excess. If you are willing to pay more for potential repairs, your premium should come down.
- Protect your no-claims discount. This may end up costing between 5-10 per cent more on your premium, but could be less than non-fault increases.
- Consider adding a name driver. If they have a clean driving history, this will spread the risk of having an accident.
- Complete an advanced driving course. For example, insurance firm Direct Line offers a 5 per cent discount for drivers that take the “PassPlus” course.
- Claim compensation. If you suffered an injury from a non-fault accident, think about claiming compensation with the help of a specialist solicitor, like Accident Compensation 4UK.
Due to these findings, it might be tempting to disregard minor incidents. However, the Association of British Insurers (ABI) strongly recommends you report any road accident or traffic collision to your insurer, even if you don’t intend to claim.
Seeking helpful information regarding everything to do with claims relating to car or vehicle accidents? If so, then you should Visit Accident Compensation 4 UK for some useful advice to help your decision-making process.