Although it is entirely sensible to go after the other driver directly to recover losses arising from an accident for which you can prove you were not to blame, failure to report the fact of an accident to your insurer may be regarded as withholding a material fact, and thereby invalidate your own insurance for future claims. A typical motor insurance policy includes among the material facts which should be reported "Details of any accident or loss involving your vehicle (whether or not you make a claim)". I volunteer as a Citizens Advice adviser and have seen recent cases in which insurers have ruthlessly cancelled insurance policies because of a failure to disclose matters that the policy terms said should be reported.

The problem is not whether a no-fault accident is a material fact; clearly that is debatable, but that the inclusion of it in the policy terms makes reporting it a contractual obligation. In a judicial challenge a court would be likely to find for the insurer. However unpalatable the premium hike arising out of reporting a no-fault accident may be, it is nothing compared with the problem of obtaining future insurance for anybody who has previously had cover withdrawn.