How to Make a Car Insurance Claim UK: FCA ICOBS Rules Explained

What to do at the scene before you think about claiming

The strength of a future car insurance claim is usually decided in the first few minutes at the roadside, long before any paperwork is submitted. The Road Traffic Act 1988 imposes legal duties that exist regardless of what your policy says: you must stop, and where anyone is injured or property is damaged you must give your name, address and vehicle registration to anyone with reasonable grounds to ask. If you do not exchange these details at the scene, you are required to report the incident to the police within 24 hours.

Beyond the legal minimum, the evidence you gather will shape how quickly your insurer can assess liability. Photograph the position of both vehicles before anything is moved, the damage to each car, the road layout, any skid marks and relevant road signs or signals. Note the make, model, colour and registration of the other vehicle, and take the other driver's name, address, telephone number and insurer if they will share it. Independent witness details are valuable because liability disputes often turn on a single contested point about right of way or speed.

Avoid admitting fault at the scene even if you feel responsible. Liability is a question your insurer determines on the evidence, and an admission can complicate that assessment. Stating the facts of what happened is appropriate; conceding legal blame is not your role and may conflict with a policy condition requiring you to leave liability to the insurer.

Notifying your insurer and what the FCA requires of them

Almost every motor policy contains a condition requiring you to notify the insurer of any incident that might give rise to a claim "as soon as reasonably possible", and many require notification even where you do not intend to claim, because a third party might. Telephone the claims line, which is usually open outside office hours, and have your policy number, the date and time of the incident and the basic facts ready.

Once notified, the insurer's conduct is governed by the FCA's Insurance Conduct of Business Sourcebook. ICOBS 8.1 requires firms to handle claims promptly and fairly, to provide reasonable guidance to help a policyholder make a claim, to give appropriate information on its progress, and not to unreasonably reject a claim. A rejection on grounds of non-disclosure or misrepresentation is only fair where it is consistent with the Consumer Insurance (Disclosure and Representations) Act 2012, which distinguishes between honest mistakes, careless misrepresentation and deliberate or reckless misrepresentation.

The insurer will typically allocate a claim handler and may instruct an engineer to inspect the vehicle. Keep a record of every conversation, including dates, the name of the person you spoke to and what was agreed, because this contemporaneous note is useful if a dispute later arises about what the insurer said or promised.

Fault, non-fault and how it affects your excess and premium

UK motor claims are categorised as fault or non-fault, and the label is about who pays rather than who is morally to blame. A "fault" claim means your insurer cannot recover its outlay from another party, even if the accident was genuinely not your doing, for example where the other driver is untraced. A "non-fault" claim is one where your insurer expects to recover its costs in full from the responsible party's insurer.

This distinction matters for two reasons. First, your policy excess: on a non-fault claim your insurer should ultimately recover the excess you paid from the third party, whereas on a fault claim you bear it. Second, your no-claims discount and future premiums: any claim, including a non-fault one that is still being recovered, can affect renewal pricing while liability is open, although a successfully recovered non-fault claim should not reduce your no-claims discount.

Where the other party is uninsured or untraced, the Motor Insurers' Bureau exists to compensate victims. The MIB operates two schemes funded by a levy on insurers, one for uninsured drivers and one for untraced drivers, and your own insurer or solicitor can guide you on making an MIB application where appropriate.

Repairs, total loss and how settlement is calculated

If your vehicle is repairable, the insurer will usually direct you to an approved repairer, and using that network often comes with a repair guarantee and avoids you fronting the cost. You are generally entitled to use your own repairer, but the insurer may only pay what its approved network would have charged, so check before instructing an independent garage.

Where repair costs approach or exceed the vehicle's value, the insurer may declare a total loss, commonly called a write-off. The settlement is based on the market value: what it would cost to buy a comparable vehicle of the same make, model, age, mileage and condition immediately before the loss, not what you originally paid or what you owe on finance. If you believe the offered figure is too low, you can challenge it with evidence such as advertised prices for genuinely comparable vehicles and trade guide valuations.

Vehicles assessed as total losses are placed in salvage categories: Category A and B vehicles must be destroyed, while Category S (structural) and Category N (non-structural) vehicles may be repaired and returned to the road subject to safety checks. The DVLA must be informed and the V5C updated where a written-off vehicle is repaired and kept.

Timescales, complaints and escalating to the Ombudsman

There is no single statutory deadline by which an insurer must settle a motor claim, but the FCA's overarching requirement to act promptly and fairly applies throughout. Straightforward windscreen or own-damage claims can settle in days, while disputed liability or injury claims take considerably longer because liability and quantum must both be resolved.

If you are dissatisfied with how the claim is being handled, raise a formal complaint with the insurer. The FCA's dispute resolution rules give a firm up to eight weeks to issue a final response. If you remain unhappy after that response, or if eight weeks pass without one, you can refer the matter to the Financial Ombudsman Service, generally within six months of the final response.

The Ombudsman provides a free, independent review and can direct an insurer to pay a claim, increase a settlement or pay compensation for distress and inconvenience where it finds the firm acted unfairly. Its decisions are binding on the insurer if you accept them. Because the service publishes complaint data and uphold rates by firm, it provides a useful gauge of how individual insurers handle disputes.

Frequently asked questions

How long do I have to report a car accident to my insurer?

Most policies require notification "as soon as reasonably possible", which in practice means within a day or two. Some set a specific window such as 48 hours or seven days. Reporting late can give the insurer grounds to argue it was prejudiced, so notify promptly even if you have not decided whether to claim.

Will making a claim always increase my premium?

Not necessarily. A genuine non-fault claim that your insurer fully recovers from the third party should not reduce your no-claims discount, though some insurers still load premiums because any claim activity is a rating factor. A fault claim usually affects both the discount and the premium at renewal.

Can I use my own garage for repairs?

Generally yes, but the insurer may limit what it pays to the cost its approved repairer would have charged, and a repair guarantee may not apply. Check the policy and speak to the claims handler before committing to an independent garage.

What is the difference between a fault and non-fault claim?

The labels describe whether your insurer can recover its costs, not who is morally to blame. Non-fault means the insurer expects full recovery from the responsible party. Fault means it cannot recover, even if you were not actually at fault, for example where the other driver cannot be traced.

What can I do if my insurer offers too little for a written-off car?

Challenge the figure with evidence of the market value, such as advertisements for genuinely comparable vehicles and recognised trade valuation guides. If the insurer will not move, raise a formal complaint and, after its final response, refer the matter to the Financial Ombudsman Service.