How to Make a Car Insurance Claim UK 2026: Step-by-Step FCA Process

Making a car insurance claim is governed by a combination of the Road Traffic Act 1988 (which sets duties at the scene of an accident), FCA Handbook ICOBS 8.1 (claims handling obligations), the policy contract terms, and the FCA Consumer Duty (PS22/9). Understanding the process from the moment of an incident through to settlement - and knowing what obligations rest on the driver versus the insurer at each stage - is essential for obtaining a timely and fair outcome.

The ABI recorded £11.1 billion in motor claims paid in 2024. Write-off claims have their own specific process - see our car insurance write-off guide. For complaint escalation, see our FOS guide. For the full market overview, visit the car insurance hub.

Step 1 - At the scene: RTA 1988 s.170 duties

Section 170 of the Road Traffic Act 1988 imposes statutory duties on any person involved in an accident causing damage to another person, vehicle, animal or road property. Failure to comply is a criminal offence under s.170(4) - IN10 endorsement plus up to 6 penalty points or £300 fixed penalty.

Beyond the statutory duties, at the scene: photograph all vehicles (plates, damage, positions); note the location (GPS pin), time and weather; obtain the other driver's name, address, insurer, policy number and registration; take witness contact details; and document injuries photographically at the earliest opportunity.

Step 2 - Notify your insurer promptly

Most motor insurance policy terms require notification of any accident or incident as soon as reasonably practicable - typically within 24-72 hours - even if the policyholder does not intend to pursue a claim. Late notification can prejudice the insurer's ability to defend a third-party claim, though the insurer's primary liability to third parties under RTA 1988 s.151 remains regardless of late notification.

Under FCA Consumer Duty (PS22/9), an insurer applying late notification conditions in a disproportionate way may be in breach of the consumer support outcome obligation.

Steps 3-6 - From notification to settlement

Step 3 - Insurer assessment (ICOBS 8.1.1R). The insurer must handle the claim promptly and fairly, providing reasonable guidance to help the policyholder. The insurer will typically instruct a claims handler or approved repairer engineer to assess the damage and determine whether the vehicle is repairable or a total loss.

Step 4 - Repair or total loss decision. If repairable, the insurer directs the vehicle to an approved repairer or allows the policyholder to use their own (at potentially different labour rates). If assessed as a total loss (write-off), the insurer offers a market value settlement. For write-off categories and valuation dispute rights, see our car insurance write-off guide.

Step 5 - Courtesy car entitlement. Whether a courtesy car is provided depends on the policy terms - it is not a statutory entitlement. Most comprehensive policies include a courtesy car during approved repairer repairs. For non-fault accidents, the policyholder may be entitled to a credit hire vehicle from the at-fault third party's insurer - a different legal mechanism, subject to credit hire rates being reasonable at common law.

Step 6 - Settlement and NCD effect. On settlement the insurer applies the policy excess and records the claim on the CUE database. A fault claim triggers the NCD step-back (typically 2 years under standard scales). A non-fault claim where the third party admits liability should not affect NCD, though it remains recorded on CUE and may affect the insurer's risk assessment at renewal.

Claims handling obligations - ICOBS 8.1 and Consumer Duty

Frequently Asked Questions

How quickly should I report an accident to my insurer?

Your policy specifies the timescale - typically 24-72 hours or 'as soon as reasonably practicable.' Notify even if you do not intend to claim, because the other party may submit a third-party claim against your insurer. Late notification can give the insurer grounds to challenge indemnity where it suffers prejudice, though it remains liable to third parties under RTA 1988 s.151 regardless.

Does a non-fault claim affect my no-claims discount?

A genuine non-fault claim where the third party admits liability and the insurer recovers its costs should not affect NCD under FCA guidance. However, the claim is recorded on the CUE database and may affect the insurer's risk assessment at renewal even if the NCD level is not reduced. Check your policy terms for the specific NCD treatment of non-fault claims.

What is the 24-hour police reporting rule under RTA 1988 s.170?

Section 170(3) RTA 1988 requires a driver to report to police within 24 hours where injury was caused and the driver did not exchange details at the scene. This is a criminal law obligation separate from the insurer notification requirement. If injury occurred and full details were exchanged at the scene, the s.170(3) 24-hour police reporting obligation does not apply.

What can I do if my insurer rejects my claim unfairly?

Submit a formal written complaint under the insurer's internal complaints process. Under ICOBS 8.1.1R, the insurer must not unreasonably reject a claim. After 8 weeks without a satisfactory final response (DISP 1.6.2R), refer to the FOS (financial-ombudsman.org.uk) within 6 months of the final response letter. The FOS applies the fairness standard in DISP 3.6.1R and can direct payment with interest for unjustified delay.

Sources

• FCA Handbook ICOBS 8.1 (claims handling) - handbook.fca.org.uk/handbook/ICOBS/8/1.html
• FCA Handbook DISP 1.6.2R (8-week final response) - handbook.fca.org.uk/handbook/DISP/1/6.html
• FCA Handbook DISP 3.6.1R (FOS fairness standard) - handbook.fca.org.uk/handbook/DISP/3/6.html
• FCA Consumer Duty PS22/9 - fca.org.uk/publication/policy/ps22-9.pdf
• Road Traffic Act 1988 s.170 (accident duties) - legislation.gov.uk/ukpga/1988/52/section/170
• Road Traffic Act 1988 s.151 (insurer liability to third parties) - legislation.gov.uk/ukpga/1988/52/section/151
• ABI motor insurance market data 2024 - abi.org.uk - total claims paid £11.1bn
• CUE (Claims and Underwriting Exchange) - cue.org.uk