If you have been involved in a road accident, you may hear your insurer talk about a “fault” or “non-fault” claim. The wording can sound as though someone is being blamed, but that is not always the case.
In car insurance, the difference often comes down to one question: can your insurer recover all the money it paid from another person or their insurer?
This guide explains what fault and non-fault claims mean, how insurers decide between them and what each type of claim may mean for your car insurance.
Fault vs non-fault claims: the quick answer
A fault claim is usually recorded when your insurer pays for a claim but cannot recover all its costs from another party.
A non-fault claim is usually recorded when your insurer can recover all its costs from the party responsible, or from their insurer.
This means a claim may be classed as fault even when you did not cause the damage. “Fault” is an insurance term and does not always mean you were to blame.
What is a fault claim?
A fault claim may be recorded when:
- You caused an accident.
- Both drivers share responsibility.
- Your insurer cannot identify the person responsible.
- Your insurer cannot recover all the money it paid.
For example, imagine your car is damaged while parked and the other driver leaves without giving their details. You may not have done anything wrong. However, if your insurer pays for the repairs and has nobody to recover the cost from, it may record the claim as a fault claim.
Other examples could include reversing into a wall, losing control of your vehicle in poor weather, or your vehicle being stolen.
What is a non-fault claim?
A non-fault claim is usually recorded when another person was responsible and your insurer recovers all its costs from them or their insurer.
For example, another driver may hit the back of your car while you are waiting at a red light. If their insurer accepts responsibility and repays the full cost of your claim, it would usually be recorded as non-fault.
The claim may stay open while the insurers review the evidence and recover the money. This means it might not be marked as non-fault straight away, even if you believe the accident was clearly not your fault.
The main differences at a glance
The exact outcome will depend on your policy, the details of the accident and whether the insurer can recover its costs.
What is split liability?
Sometimes, there is not enough evidence to place full responsibility on one driver. The insurers may agree that both drivers share responsibility. This is known as split liability.
For example, a claim may be settled on a 50/50 basis. Each side accepts half of the responsibility and part of the cost. Because your insurer has not recovered all the money it paid, this will usually be recorded as a fault claim.
How do insurers decide who was at fault?
Insurers look at the facts and evidence from everyone involved. This may include:
- Accounts from each driver
- Photos or videos from the scene
- Dashcam footage
- Witness statements
- The position and type of damage
- Police reports, where available
- Relevant parts of the Highway Code
The other driver admitting fault at the scene does not always settle the matter. Their insurer will still review the evidence before accepting responsibility.
If the drivers give different accounts and there is little evidence, it can take longer to reach a decision.
How could a fault claim affect your no-claims discount?
A fault claim is likely to reduce an unprotected no-claims discount. The amount lost will depend on the insurer’s rules and the terms of the policy.
If your no-claims discount is protected, the discount may stay in place after a claim, within the limits set by your policy. However, protected no-claims discount does not freeze the overall price of your insurance, nor mean that you do not need to disclose the claim to future insurers. Your renewal price could still change.
During an open claim, your no-claims discount may be affected until your insurer confirms who was responsible and recovers its costs.
Can a non-fault claim increase your car insurance price?
It can. Insurers use many details to work out the price of cover, including your claims and accident history. As a result, your price may change after a non-fault claim or even after you report an incident without making a claim.
This does not mean that every non-fault claim will lead to a higher price. Each insurer calculates risk in its own way, and other factors may also affect your renewal quote.
Will you have to pay an excess?
Your excess is the amount you agree to pay towards a claim made under your own policy.
If you make a claim through your own policy, you may need to pay the excess even if the accident was not your fault. You may be able to recover it from the responsible driver or their insurer once responsibility has been agreed.
The process can vary, so check your policy documents and ask your insurance broker how your excess will be handled.
Do you still need to report an accident if you do not want to claim?
Yes. You should tell your insurance broker about an accident as soon as possible, even if you do not plan to make a claim. Your policy will explain how quickly you need to report it.
If no claim is made by you or anyone else, and your insurer does not pay anything, the event may be recorded as “notification only”. It is still part of your accident history and may need to be declared when you apply for insurance in future.
What should you do after an accident?
If you are involved in an accident:
- Stop somewhere safe and check whether anyone is injured. Call 999 if emergency help is needed.
- Exchange names, contact details, vehicle registrations and insurance information.
- Take clear photos of the vehicles, damage and road layout, if it is safe to do so.
- Ask for the contact details of any witnesses.
- Avoid accepting blame. Give a clear and honest account of what happened.
- Report the accident to your insurance broker as soon as possible.
- Keep any photos, dashcam footage, receipts and messages linked to the accident.
Good evidence can help those handling your claim understand what happened and may make the claim easier to resolve.
Frequently asked questions
Does a fault claim always mean I caused the accident?
No. A fault claim means your insurer could not recover all its costs. This can happen even if your parked car was damaged and the person responsible could not be found.
Is a non-fault claim the same as not making a claim?
No. A non-fault claim is still a claim and will usually stay on your insurance record. You may need to declare it when asked about previous accidents or claims.
How long does it take to decide whether a claim is fault or non-fault?
There is no set time. It depends on the evidence, whether the drivers agree about what happened and how quickly the insurers respond to each other.
What if I disagree with the decision?
Ask the insurer who handled the claim to explain how the claim was settled and what evidence was used. If you are still unhappy, you can follow the relevant insurers’ complaints process. You may then be able to ask the Financial Ombudsman Service to review the complaint.
The main point to remember
The difference between fault and non-fault claims is not simply about who caused the accident. It is also about whether your insurer can recover all the money back that it paid.
Every claim is different, so check your policy documents and speak to your insurance broker if you are unsure how an accident has been recorded.
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This article provides general information only. Your cover, excess and claims process will depend on the terms and conditions of your policy.
