Claiming on your car insurance policy
 | When something bad happens, you naturally want to race out and claim on your insurance as soon as possible. After all, that's what it's for. |
However, your insurer must make sure your claim is valid to protect other policy holders from paying higher premiums, and the company's shareholders from losing capital due to paying false claims.
Here's how you can satisfy your insurer's requirements and maximise the success of your claim:
Things to think about before you claim
You should consider:
What happens if you make a claim?
Car insurance policies often have special conditions about making a claim. Check what the financial consequences will be if you claim on your policy, for example:
Will you have to pay an excess towards the claim?
Your insurer usually requires you to pay an excess when you make a claim. If you cannot pay a lump sum, check to see if you can arrange to pay it by instalments.
Will you lose all or part of your 'no claim' bonus?
If you make a claim, you may have to pay more for insurance next year. Check with your insurer about the circumstances in which you will lose your 'no claim' bonus.
| TIP! | If the amount of your claim is small, it might be worth considering not making a claim and bearing the cost yourself, if you can afford to do so. |
How much is your car worth?
Your policy may say that the insurer only has to pay the 'market value' of your car rather than a specific figure. The market value is determined by:
- examining the condition of your car, and
- assessing the going rate for that make and model of car.
If you and the insurer cannot agree on the amount to be paid, you can take your complaint to the general dispute resolution scheme, the Financial Ombudsman Service (FOS): see How to complain.
| TIP! | FOS cannot make the insurer compensate you for any expenses you might have because of the delay in paying the claim. Ask the insurer to pay upfront the part of the claim that's not in dispute, or ask FOS to determine your complaint as quickly as possible. |
Can you claim for garage costs?
Most policies do not cover the cost of storing your car while it is waiting to be repaired. If your car is not being repaired for some time (while your claim is being assessed), garage costs can add up and quickly become a significant amount.
Avoid garage costs by:
- keeping the car at home rather than at a garage or
- getting written agreement from the insurer that they will pay the garage's storage costs while they are investigating your claim.
More about:
FIDO Website: Printed 02/10/2010
