Car Insurance FAQs (N-S) 

New Claim Notification:

Q : I was involved in an incident recently where there was no damage to my car, other than scuffmarks. Do I still have to notify my insurance company?

A : You should notify your insurer. The policy conditions say that you must report it but the choice of whether to claim is down to you. You could report it 'for information purposes only'. That way they would at least know of it if they were approached by the third party directly. If you don't you might breach policy conditions and your insurer refuse to deal with the third party damage.

No Win No Fee :

Q - What is No Win No Fee

Legal Aid was replaced for personal injury litigation by Conditional Fee Agreements - the so called No Win No Fee. You ask a solicitor to pursue a claim against someone you blame for your injury. They evaluate how good your case is and enter into a Conditional Fee Agreement. You will need to ask your solicitor for full details of the agreement and how it works. Some schemes will deduct a fee from your damages some will not.

Police - reporting to:

Q : If you have an accident in which someone is injured, do you have to report this to the police?

A : The answer is 'yes'. You should report it at the time of the accident but it must be reported within 24 hours. They will also check your RTA certificate of insurance which must also be produced to them within 7 days. (If you haven't got it with you when you report, they will serve you with an 'HO/RT1' form\line demanding sight of it). However there is the new MID (Motor Insurers Database) and the police can check your insurance on this computer system at the scene of an accident. Failure to report it or failure to produce the RTA certificate could result in criminal prosecution.

Road Tax:

Q : Is the insurance policy still effective if I haven't taxed the car?

A : The answer to your question is 'yes'. There are no standard terms or conditions in your motor contract that says you must tax your car. They might not be that happy though! However, if you use the car on the road without tax that is a criminal offence for which you could be prosecuted. If you do not plan to use your car on the road for some time, i.e. it is 'laid up' and kept off the public highway, then not only could you save money on not taxing it but you could also ask your insurer to reduce cover to 'laid up fire and theft'. This would mean returning your certificate of insurance and then you would not be covered if you took the car out on the road.

Smoke damage:

Q : There was a lot of smoke but all that was damaged was the wiring loom. Why will you not pay my claim?

A : Where the wiring loom has sustained damage by an electrical breakdown, but there were no flames as such, there has been no fire. Just an electrical fault. These are excluded by the policy. So, sorry, but you will have to pay for the repairs to the wiring yourself. If the wiring loom has set the rest of the car on fire, then that damage can be paid for by the policy (assuming you have at least 'third party fire and theft cover'). Strictly the wiring loom should not be paid for but it might not make any difference if the rest of the damage renders your car a total loss.

Same Insurer:

Q : I was hit by another car and although the other driver was clearly at fault and I have a witness, the other driver denies liability. The trouble is, we are both covered by the same insurer. So I think it is impossible for them to represent me impartially.

A : When I have been in this position, I have relied upon the witness evidence, when available, to make an impartial decision between the two clients. However, if you feel you are not being treated fairly, then you have the option of using the Financial Services Ombudsman or commencing an action in the "Small Claims Court".

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