If you are lucky, a motor accident is merely annoying. Nevertheless, sorting it out can be a stressful process and you are likely to be out of pocket, at least for a while. This can seem particularly unjust when it was someone else’s negligence, and a common cry of protest from an accident victim is, “it’s not my fault, so I’m not paying my excess” or “the other driver’s insurance company should pay, so I’m not making a claim”. However, the solution is a little more complex than this in reality – here is an overview of what goes on when you make a claim, which should shed some light on the process.

What you should do if you have an accident

* Always make a note of the other driver’s name, address, telephone number, registration number, description of the vehicle and insurance details and be prepared to provide yours – even if you do not feel that the accident is your fault. Not to do so is a criminal offence. If you are unlucky enough to suffer a hit-and-run incident, try to take the registration number of the vehicle – your insurance company can trace the registered owner and his or her contact details.

Never admit liability, even if the other party becomes aggressive, or you suspect it really is your fault.

Never sign anything given to you by the third party unless you fully understand it.

If anyone has been injured, do not leave the scene of the accident until you have been given permission by the police.

How your insurance company deals with the claim depends on the circumstances of the accident and the type of policy you have.

Fully Comprehensive Cover

If you have chosen fully comprehensive cover, your policy will cover the cost of repairing your vehicle or the market value in cash if it is a “total loss”. Some insurance companies have a network of approved garages and will arrange the repairs themselves (even, in some cases, guaranteeing a courtesy car for a limited period) although others will expect you to obtain your own estimate and allow the insurer’s engineer to inspect your vehicle. In the former case, the resulting repairs are the insurer’s responsibility and any problems with them must be dealt with by the company.

Irrespective of fault, you will initially lose your No Claims Discount (NCD) and have to bear an excess (the first 100-400 euros of the claim, which is not covered) to be able to have your car repaired. Your insurance company will then decide, based on the circumstances of the accident, which driver was at fault (using legal guidelines) and if this was not you, contact the third party or his insurance company if possible.

Once contact has been made, your insurance company will seek an admission of liability from the third party, the ease of which could depend upon the facts of the accident – if they were ambiguous or your story and the third party’s conflict, this may take longer than you anticipated!

When (or if) the third party insurance company agrees that their policyholder was at fault, yours will be able to reclaim the costs of repairing your vehicle from them and will reinstate your NCD once a successful recovery has been made. They will also attempt to recuperate your own uninsured losses (which includes the policy excess, injury compensation and any other out-of-pocket expenses you may have reasonably incurred, such as taxi fares or hire car fees – so make sure you keep your receipts).
If the third party cannot be traced, did not have insurance or his insurer will not admit liability, a recovery cannot be made, meaning that you will lose both your excess and your NCD. Where two insurance companies agree a “50-50” recovery (usually when they have reached a stalemate in liability wrangling) you will recover half of your excess but again, lose your NCD.

You can avoid the claim procedure by approaching the third party insurance company directly, but will have to pay for your own vehicle repairs and wait to recover the money – not only will this leave you even more out-of-pocket for a while, but you are creating extra work and stress for yourself. It is always more advisable to leave your claim in the hands of your insurance company, who are experts in this area and are paid by you to do so.

Third Party Only Cover

If your cover is Third Party Only, you will not be able to claim for your vehicle to be repaired and, if the accident was not your fault, you will have to approach the third party insurance company yourself to reclaim the money – although your insurers will happily advise you on how to deal with this if necessary. If it is you who is at fault, your insurers will compensate the third party and, whilst you will not be subject to an excess, you will lose your NCD if the claim against you is successful.

If the car is not owner-driven, whose insurance pays the claim?

If you are driving someone else’s car, and are named on their policy, that person’s insurance company will pay for it – likewise if the car’s owner has an “open driver” policy (meaning anyone can drive it with the policyholder’s permission). However, if this is not the case but the vehicle is insured in your name (whether or not you own it) or you have a policy which permits you to drive any car with the owner’s agreement, then your insurance policy will cover the incident. If both policies appear to cover it, then both insurers should be notified.