Car Parts and Accessories

Dealing with the Delay

Most insurers will settle this type of small claim promptly, to save becoming involved in legal costs. There may be delays, however, while they complete their own investigations into the accident, or wait for information from their own policy-holder.

Your first letter, making the claim, should be sent immediately after the accident. Do not wait longer than 10 days for a reply, or more than two weeks for a reply to your letter setting out your detailed claim, unless you know of some good reason for such delays.

If there is an unreasonable delay, send the insurer a brief reminder, threatening to take legal action. If this does not produce a satisfactory reply within 10 days, hand the claim over to your own insurer or go about seeking legal advice.

If the offer is too small

Many insurers will respond to your initial letter by offering less than the amount claimed. It is perfectly proper for you to reject such offers and insist on receiving the amount claimed. If the insurer does not increase the original offer without delay, seek legal advice.

When an acceptable offer is made, write confirming acceptance. If you are to be paid a reduced amount because the insurer claims that you were partly responsible for the accident, your letter should emphasise that, although you accept the offer, you do not admit liability.

In terms of the standard insurance policy you may not make any admission without the written consent of your insurer and to do so without consent may invalidate the policy.

When an insurer settles a claim, the claimant is asked to sign a discharge, which releases the insurer and its policyholder from any further liability.

If you are absolutely sure that all you are entitled to claim is included in the settlement, there is no reason why you should not sign the discharge.

Once you have signed the discharge, the insurer is not under any obligation to make further payments on your claim. This applies even if you did not claim all the compensation to which you were entitled, or did not know of a particular loss at the time you signed the discharge.

When someone claims against you Before you decide to deal personally with a claim against you by another driver, you must be certain that you are not committing yourself to a greater financial liability than seems likely at first.

Where repairing the damage to your vehicle clearly is going to be less expensive than the loss or reduction of a no-claim bonus, it will probably be safe for you to deal with the claim personally. You must, however, advise your insurer of the accident even if you do not intend to claim at this stage.

Ask the other driver for the estimated cost of repairing his car. If this is far more than was expected, or will not represent a saving on your no-claim bonus, pass the claim on to your insurer.

If the price quoted seems reasonable for the amount of damage done, try to settle the claim immediately. Make it clear that any payment is in ‘full and final settlement’, and is made without admission of liability.

If the Estimate is too high

If the estimate seems excessive in proportion to the damage, or appears to include damage which was not caused in the accident, pursue the matter with the other driver. If he is not prepared to have the amount reduced, you should obtain independent assessments from an experienced motor mechanic, a panel-beater or the technical department of a motoring organisation, such as the AA.

It is only worth going to these lengths if the amount involved is fairly large, because you may have to pay an inspection fee.

Where the driver making a claim refuses to co-operate—by not allowing his car to be inspected, for example write to him making a firm offer of what seems a fair amount. Record in the letter the specific instances of his refusal to cooperate. If he rejects the offer, refer the claim to your insurer or seek legal advice as to the best course of action.

The other driver may prefer to have the repairs done before accepting the settlement. If so, ask for the final account as well as the estimate.

If a claim is made for the costs of hiring alternative transport, such costs should not be out of line with the cost of running the vehicle. Documentary proof of all expenses incurred should be submitted, but no claims for petrol or oil used in the hired car should be considered.

Check that the period of hire does not, exceed the time in which the car is undergoing repairs.

Deciding Whether to Pay in Full

On receipt of the final details of the other driver’s claim, you have to decide whether or not to pay the full amount.

If the other driver was partly to blame for the accident, you will have a valid reason for reducing the claim. It is not worth arguing at length about liability, because the essence of settling a claim, without involving insurers, is to do so quickly and with minimal expense to the parties concerned.

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