If you own a car, have it insured with a Car Insurance and have been wondering if there’s ever an unlucky day whereby you met with a Minor Car Accident – should you claim against it or to settle it privately… here’s a true case study that I have personally came across which may help you to decide…
The Story:
I recently came across one real case whereby a guy who just got his car license recently got into a minor accident with a lorry truck driver who did not manage to brake in time and decide to “kiss” his car. Both parties were not injured but my friend’s car did need a day of servicing.
This guy decided to ask his other friends who have lots of experience in claiming his car insurance on what to do since his car is insured and this was his first unlucky event… the advice given was to claim against the lorry truck driver’s car insurance company for cost of repair as well as for medical expenses.
Furthermore this guy was asked by his friends to go for further medical checkups and to complain of some “unknown pain like aches and giddiness” so that he can get a few days of medical leave as well!
On the other side of this situation, the Manager who employed this Lorry Truck Driver decided to write a Personal Letter to this Guy asking if they can settle this accident privately (they will pay for the damages and cover the necessary medical costs) and if best, not to claim against the car insurance… this guy refused because his friends have asked him to go all out (even to engage a lawyer) to claim as much compensation as possible!
The Verdict:
This guy got his money back from fixing his car and managed to get some form of compensation for the “injuries”. Last I heard about the Lorry Truck Driver was that he was sacked from the Company.
So What Will You Have Done If You Are The Guy Here?
If you are the guy here… the question is that would you have settle this issue privately or would you have go through all the processes of claiming against each others’ car insurance policy?
If I am the guy here or I do know the guy here, I would have settled this privately because of a few considerations:
– Actual Claims Made Will Affect/Increase Your Car Insurance Premiums
If you ever ask why car insurance premiums increase drastically (almost like every year), it is due to these actual claims that are being made. Any actual claims that are made and approved will add on to the overall claim experiences for the Insurance Company and these companies are not out to make a loss with their General Insurance Business so naturally they will revise the premiums (upwards) and pass it back to the customers.
But if you do settle this privately (note that it’s still a must for you to notify that your insurance company of the accident), the impact is definitely much lesser (if other people are willing to do the same as well). Making it known to the Insurance Company about the Accident but not claiming against it will not have any effects on the current benefits of your car insurance plan.
– Actual Claims Will Affect Your Benefits And Renewability
Claiming against your Car Insurance will affect your Benefits especially the No Claim Discount (or NCD) and even affect your renewability in the future. If the accident is minor and both parties are willing to settle it privately, it is more beneficial to hold onto your current NCD and your eligibility for renewability.
– Your Generosity Can Help Save The Other Person’s Job
It may be hard to accept the fact that your vehicle was the one that got “kissed” because of somebody’s carelessness… But if this person is working as a driver as a source of income, your generosity in accepting to settle it privately can help to save the other person’s job!
Does That Mean You Can Never Claim With Your Car Insurance Ever?
If the accident is serious till the stage whereby your car is beyond repair or the damages are beyond acceptance… or that the injury sustained is serious and/or long term… or that the other party is shifting the blame and refusing to come to an agreement to settle the issue… claiming with your car insurance is the best thing to do!
I do hope that this post can help you to set the right stage when it comes to settling of your car insurance claims.
