A third party insurer wants to settle directly with us after an accident - what's the downside of accepting? | Ask Honest John

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A third party insurer wants to settle directly with us after an accident - what's the downside of accepting?

My wife was driving my daughters' car recently and was hit in the rear by another car causing major damage to the rear offside. She was also pushed into the car in front, creating some minor damage/scuffing. The driver of the car who hit her immediately admitted full liability to the police. Our insurers Admiral have said the car is a write off but are being very slow to make an offer to us. Meanwhile LV, the insurers of the third party, have been to take pictures and have made a good opening offer for the car saying its a Cat C right off. Why would LV try to settle directly and what is the downside of accepting any such offer?

How is this no fault claim likely to affect future insurance premiums for my daughter (as the policy holder) and my wife as a named driver involved in the incident?

Asked on 6 October 2017 by Robert Darby

Answered by Honest John

LV would want to settle early to mitigate any out of pocket expenses or ongoing credit hire or loss of use. Should you deal with the at fault party directly (LV) then you would have no right to go to the financial ombudsman should you have any complaints or not be happy with the value they finally come to. Should your premiums increase as a result of the incident, if you have legal protection, make use of it to claim any increase for the next five years back. If you do not, try freemotorlegal.co.uk who do it for free.

Tags: insurance claims insurance write offs no fault accident cat c third party insurance

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