Comparison of at fault claim or settling with other party outside insurance

[AGlandlord]

Hello,

 

I'm at fault for causing damage to another driver's car - as we were pulling out of a car park and I hit the nearside rear bodywork panel wheel arch, causing minor cracks along the arch and some chipping but no dents. Driver uninjured and I admitted blame. He's called back saying his lowest repair cost is £650. His car is a 2002 reg car and not that great looking. It's more than I can afford to pay direct in cash, and I'm not sure that I'm getting a vfm quote either, so I'm thinking:

 

1. Admit an at fault claim with my insurer Admiral. I've got 19 years NCB protected (I'm over 40) and a great premium of £211, so I'm then worried about the £ increase in annual premium - anyone have any ideas on the % increase? My excess is £150

2. Offer £250 bank transfer to settle the claim outside insurance (I don't think he'd spend it on the car!). I'm told I need to still notify Admiral on an 'information only' basis to avoid invalidating premium - but does this increase next year's premium, and should I get the other party to sign a statement promising to not submit a claim through insurer? If I take this route, is there a risk of invalidating my premium only if the other party notifies his insurer to make a claim? I assume that this would invalidate the premium if found out, but is not technically illegal? Or am I wrong?

 

At this point I'd like to get a feel of the likely % increase in premium for option 1, and the same for 2 if I just notify the insurer - if anyone here can help?

 

Many thanks and kind regards

AGlandlord

 

 

[unclebulgaria67]

Do not deal with yourself, as you have to notify your Insurers anyway.  With protected no claims, the no claims will remain, but with a fault accident, you are probably looking at a premium loading of about 20 to 30% (guestimate based on previous underwriting rating knowledge).  And the premium loading will reduce over about 3 years, if you remain claim and accident free. Your excess is normally for own damage, unless your policy states it relates to all claims.

 

If you tried to go down the private deal route, you could end up with problems.  Yes the third party could notify their Insurers, who will tell yours and you could end up arguing with your Insurers who may later refuse to offer renewal.

 

  £650 repaie for a 2002 reg car, may be more than the cars value.  So they may just pocket the £650 and then scrap it to get more money.

 

You pay Insurance, so use it and let them deal with the third party insurers.  Tell the third party they will have to claim on their Insurance and their Insurers will claim back from your Insurers.

 

Lesson for future,  NEVER ADMIT LIABILITY, EVEN IF YOU THINK IT IS OBVIOUS. Can invalidate Insurance as your policy will tell you not to admit liability.