The effect on your no claims bonus and motor insurance policy excess of accepting an offer of settlement for car damage in a road traffic accident made “without prejudice” to liability.
Without prejudice settlement question
I was driving my car down a one way street in Nottingham city centre on my way to Oxford when a car unexpectedly turned the wrong way onto the street and bumped into the driver’s wind of my car.
Clearly this accident wasn’t my fault and the driver’s insurance company are willing to fix my car “without prejudice” and are not accepting liability. I just wondered if I accepted this offer if my no claims bonus on my own car insurance would be affected, or if I would have to pay out my motor policy excess which stands at £300?
Road traffic accident solicitor response
I presume from your description that you only have vehicle damage – if you also suffered an injury such as whiplash I recommend that you speak to a specialist RTA personal injury lawyer before you attempt to settle any part of your claim “without prejudice” to liability.
In answer to your specific question:
1. If you have made a claim on your own motor insurance for repair of your vehicle you will have paid your excess and your no claims would very likely have initially been affected, but your excess should be refunded and your no claims bonus reinstated if your insurer receives the full sum from the driver at fault’s insurance company. You do need to check this with your own insurance company.
2. If you are liaising direct with the person at fault’s motor insurance company – the offer would seem to be you direct and as it is not going through your insurance company no excess should be deducted nor your no claims bonus affected. Again if your insurance company has been notified in anyway of the accident or is involved in some way (as is appropriate in a car accident of this nature) you should check first with insurance company before you agree any form of settlement of all or part of your claim.
3. If you have a solicitor acting on your behalf that solicitor should first answer your question before accepting any offer made so you fully understand all the implications to your particular claim.