Car Insurance Claims

A Guide to Making Car Insurance Claims

All you need to know about making car insurance claims

We buy car insurance in case we have to make a claim. But how many of us fully understand the car insurance claims process or appreciate how stressful it can be?

If your car has been stolen or vandalised, you might be in a state of shock. Or you might have been psychologically shaken or physically injured in a road accident. You will also usually have to deal with the police. It can be a traumatic time and lodging a car insurance claim only adds to the distress.

The paperwork alone can be daunting, but you will also have to relive the incident and probably wait some time to find out if the claim is successful.
Of course, no one wants to really think about the claims procedure because no one wants to think the worst could happen. But if you are informed and prepared, the whole process can seem much more straightforward.

Emergency services

You do not have to call the police if a collision is minor. But you should dial 999 immediately if anyone is injured. You should also contact the police if the other driver is drunk or flees the scene of the accident.

If you are involved in an accident, do not admit liability at the time as it could later harm your case if there is a dispute. Note down the names and contact information of the other drivers, plus their insurance details. It will also be useful if you can take the contact details of any witnesses.

Gather evidence

The best way to ensure a speedy resolution to a claim is to gather as much evidence as possible at the time of the incident. Of course, this is not easy if you are involved in a road accident, but it can help your case so try to keep calm.

You should write down as much information as you can about the incident, even if it seems unnecessary. You will be surprised how much the insurer will want to know – and how much you will forget.

So, log the date and time, plus the weather conditions and any speed limits or other restrictions. Then try to sketch the accident to fix it in your mind. You should also take a photo on your mobile phone of the position of the cars and any damage to your vehicle.

Crime scene

If you car has been stolen or vandalised, you should contact the police promptly. You should also take note of the date and time and any photographic evidence of a break-in or damage to the vehicle.  But remember not to touch anything as you are effectively dealing with a crime scene.

The police should give you a crime reference number, which you will need to pass on to the insurer.

Contact the insurer

It’s important to get in touch with your insurer as soon as possible to lodge a claim as there is often a time limit. It also helps if the incident is fresh in your mind. Most insurers run a dedicated claims department and you should find the contact details on your policy documents or on the company’s website.

The firm will probably ask for your policy number, so it can speed things up if you have the relevant paperwork to hand.

You will probably be feeling a bit nervous at this stage and it can help to write down your account of the incident before you make the call. Briefly explain what has happened and answer all questions honestly.

If you don’t tell the truth, or you later change your version of events, you could be guilty of committing insurance fraud.

Claim form

The insurer won’t normally want any detailed information at this stage but will send out a claim form. You should then complete the form fully, enclosing any supporting evidence.  Make a copy of the form for your records and keep it in a safe place. It is also advisable to keep a record of any phone calls or emails that are relevant to the claim.

It can take time for an insurer to deal with a claim, so try to be patient. And don’t attempt to fix your car at this stage. If your vehicle has been damaged, the insurer will normally send out a claims assessor to estimate the repair costs and then direct you to a list of approved garages.

If you take the car to your own garage without prior approval, the insurer might not reimburse the costs.

Insurance write off

In the unfortunate event that your car is a write off, the car insurance company will pay out a sum equal to its value before the accident. Bear in mind that the figure will almost certainly be less than the purchase price of the car, but if you think the valuation is unfair you should appeal to the insurer.

You will have a stronger case if you can provide examples of similar cars on sale for higher prices. You can also refer to guides such as Parker’s and other online valuation sites for typical values of used cars. But remember that the condition of the vehicle will have an impact on its value, as will its service history.

If you are still unhappy with the insurer’s valuation, you can take your case to the Financial Ombudsman Service (FOS).

No claims bonus

If you make a claim on your car insurance, it could affect your no claims bonus. In other words, the cost of your policy could jump up at renewal.
There is also an excess on most claims. So, if you put in a claim for £500 and the excess is £200, the insurer will pay out only £300. It is therefore worth weighing up the pros and cons of putting in a claim. If the damage is only minor, it might make sense to fund any repairs out of your own pocket.

They might not cost much more than the excess, plus you will safeguard your no claims discount.