Whilst is a requirement for all car drivers to hold valid insurance on the roads of the UK, if there is a car accident it is not compulsory for drivers to pursue claims through their insurance provider. Many people choose not claim on their insurance as it will mean paying an excess amount, losing any no claim bonuses and also they are likely to see an increase on their next insurance policy. The alternative option to not claiming on the insurance policy is paying for the damage caused to the other parties car.
Before deciding whether to claim on the insurance or to settle the accident privately, people should first weigh up whether they have the finances to settle it privately. This will mean the other party getting a quote for the damage caused to their car. If this quote is relatively low then the individual responsible may choose to pay it, although if they feel it is too high they should provide the other party with their insurance details. The individual is then likely to lose their no claims bonus and will be likely to have a higher premium next year, especially younger drivers.
Settling a car accident privately is quite different to if processing the claim through an insurance company. For example, normally an insurance company would manage the claim, although in this situation it is down to individuals involved. One major element which many people over look is that no matter how the claim is settled, there is a legal requirement to report the accident to the insurance companies of the drivers. This is regardless of whether a claim will be made through them, failure to report an accident may lead to an insurance policy being regarded as void for future claims.
If the people involved in an accident choose to settle a claim privately then they must complete a private settlement form. This form can be obtained from the insurance provider and is completed to inform the relevant insurance companies that a crash has happened. This information is gathered in case any other accident derive from the work which was corrected on the car which was not an insurance selected garage.