Will a non-fault accident affect my insurance?
Yes. A non-fault accident can still affect your insurance because insurers record all incidents, and drivers involved in claims are often seen as higher risk, which can increase premiums at renewal.
A “non-fault” accident simply means the insurer has recovered the full cost of the claim from another party. It doesn’t erase the fact that you were involved in a collision. For that reason, insurers still take it into account when calculating your renewal price. Many drivers are surprised to see premiums rise after an accident that wasn’t their fault, but from an insurer’s perspective, statistics show that drivers who have claimed once are more likely to claim again.
For example, if your car is hit while parked, the other driver’s insurer may cover the cost in full. You won’t lose your no-claims bonus, but your next premium could still creep up because of the perceived risk. The effect is usually smaller than an at-fault claim, yet it can still make a noticeable difference.
This article will explore what counts as a non-fault accident, how insurers record them, why they sometimes increase costs, and what you can do to reduce the financial impact.
What counts as a non-fault accident?
A non-fault accident is one where your insurer recovers the full cost of the claim from another party, meaning you were not financially responsible for the incident.
This could happen if another driver admits liability, if clear evidence shows they caused the accident, or if the claim is settled through the Motor Insurers’ Bureau when the at-fault driver is uninsured. The important point is that your insurer has not paid out permanently for the damage, even if they handled the claim upfront.
Not every scenario is straightforward, though. Some cases begin as non-fault but shift to split liability if the other driver disputes responsibility. For example, you might be hit while stopped at traffic lights, which is normally a clear non-fault situation. But if the other driver claims you reversed suddenly, the claim could move into shared fault territory.
Here are some typical examples:
| Scenario | Non-Fault Outcome | Why |
|---|---|---|
| Your car is rear-ended at traffic lights | Yes | Other driver failed to stop safely |
| Another driver hits you while overtaking | Yes | Fault lies with unsafe overtaking |
| Car damaged while legally parked | Yes | Other driver’s insurer covers repairs |
| Collision with uninsured driver | Yes (via MIB) | Motor Insurers’ Bureau steps in |
| Accident where both drivers contributed | No (split liability) | Costs divided between insurers |
The definition matters because your premiums and no-claims discount are treated differently depending on whether an accident is classed as non-fault, at-fault, or shared. Understanding where the line is drawn helps set realistic expectations before renewal.
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Get QuotesHow do insurers record a non-fault accident?
Insurers record every accident, even non-fault ones, because your claims history is used to calculate risk when setting premiums.
A common misconception is that if you weren’t to blame, the incident disappears from your record. In reality, insurers ask about all accidents over the past five years, regardless of fault. This isn’t about punishment, but about building a statistical picture of how likely you are to claim again.
When you report a non-fault accident, your insurer files the details on the Claims and Underwriting Exchange (CUE), a shared database used by most UK insurers. This means other providers can see your accident history if you shop around. If you’ve been involved in multiple non-fault accidents, insurers may consider you a higher risk, even though none were your fault.
Several factors shape how the accident is recorded:
Key details insurers log about non-fault claims
- Date and type of accident
- Circumstances and liability decision
- Costs of repairs and compensation paid
- Whether a third party or the Motor Insurers’ Bureau covered costs
For example, if your car is hit while parked and the other driver’s insurer pays, the accident is still logged on CUE. When you next apply for car insurance, you’ll need to disclose it. Failure to do so could void your cover entirely if discovered later.
Why might a non-fault accident increase costs?
Non-fault accidents can increase costs because insurers rely on statistics that show drivers involved in any claims are more likely to make future claims.
Even though another driver was responsible, insurers still record the incident and factor it into your risk profile. It’s less about blame and more about probability. If you’ve been unlucky once, the data suggests you’re more likely to be unlucky again. This is why premiums often rise, even if modestly.
Your no-claims discount (NCD) plays a major role. A non-fault claim usually doesn’t reduce your NCD, but the underlying premium may still climb. If you’ve protected your NCD, it guards the discount itself, not the overall cost of cover. So while you keep your years of discount, the base premium can still increase after the accident.
Here’s how the difference looks in practice:
| Policy Type | Accident Type | Outcome |
|---|---|---|
| NCD protection in place | Non-fault accident | NCD remains intact, but premium may still rise |
| No NCD protection | Non-fault accident | NCD stays intact, but insurer may still adjust risk and raise premium |
| Multiple non-fault claims | Non-fault accidents | Premium rises more significantly, regardless of NCD protection |
The nuance often frustrates drivers. They expect NCD protection to shield them fully, but it only preserves the discount, not the underlying premium. This distinction explains why some motorists feel penalised even when they’ve done nothing wrong.
What legal and insurance protections exist?
Drivers involved in a non-fault accident are protected by UK law and insurance schemes that ensure their losses can still be recovered.
If the other driver is insured, their insurer is responsible for covering the costs. This usually means your car repairs, injury compensation, and other losses are paid without damaging your no-claims bonus. If the at-fault driver is uninsured or untraceable, the Motor Insurers’ Bureau (MIB) steps in to compensate victims, though claims can take longer to resolve.
Beyond direct repair costs, you can also claim for uninsured losses. These include things like your excess, car hire charges, and lost earnings if you’re unable to work. Insurers may provide legal expenses cover within your policy, which helps recover these costs from the other party.
Drivers also have the right to challenge insurers if premiums rise unreasonably after a non-fault accident. While there’s no law preventing insurers from increasing prices, you can take your business elsewhere. The Financial Ombudsman can investigate if you believe an insurer has acted unfairly in handling your claim.
These protections don’t eliminate every difficulty, but they ensure that being hit by another driver doesn’t leave you carrying the entire financial burden. Knowing how to access them is often the difference between a smooth claim and a costly ordeal.
How can you minimise the impact of a non-fault accident?
You can reduce the impact of a non-fault accident by disclosing it honestly, protecting your no-claims discount, and shopping around for better cover at renewal.
Start with disclosure. Some drivers are tempted not to mention non-fault accidents when applying for new policies. That’s a mistake. If the insurer later finds the claim recorded on the industry’s database, they could cancel your cover entirely. Always disclose, even if it feels unfair.
Next, consider protecting your no-claims discount. While this won’t stop premiums from rising, it safeguards the discount you’ve built up. In practice, this means your renewal cost may still increase, but not as steeply as it would without protection.
Shopping around also makes a difference. Not all insurers treat non-fault accidents the same way. Some apply modest increases, while others are far stricter. Getting quotes from multiple providers often reveals significant savings.
Finally, think longer term. Completing an advanced driving course or opting for telematics cover can help rebuild an insurer’s confidence in your risk profile, softening the financial impact over time.
Final thoughts
A non-fault accident doesn’t remove every consequence: while you won’t lose your no-claims bonus, premiums can still rise because insurers view all accident history as an indicator of risk.
We’ve seen how non-fault accidents are defined, how insurers record them, and why they can still affect what you pay. From the outside it feels counterintuitive—you didn’t cause the crash, yet your insurance may still become more expensive. From the insurer’s perspective, though, it’s a numbers game. The data shows that drivers who’ve been involved in accidents are statistically more likely to claim again.
That doesn’t mean you’re powerless. Protecting your no-claims discount, shopping around at renewal, and investing in measures like dashcams or advanced driving courses can all help. Legal protections and industry safeguards like the Motor Insurers’ Bureau also mean you’re not left footing the bill when another driver is clearly at fault.
The key is understanding how the system works. By knowing what to expect, you can plan ahead, challenge unfair costs, and keep your insurance affordable—even after a non-fault accident.
Frequently Asked Questions (FAQs)
Yes. You must disclose all accidents, even non-fault ones. Failure to do so could invalidate your cover if discovered later.
Usually no. If your insurer recovers all costs from the at-fault driver, your no-claims discount should remain intact.
Not always. Protection keeps your discount intact, but insurers can still raise the base premium if they see you as higher risk.
Non-fault accidents normally remain on the Claims and Underwriting Exchange (CUE) database for five years, and insurers will ask about them during this period.
Yes, multiple non-fault accidents may cause some insurers to increase premiums significantly or decline cover, as they still signal risk.
Yes, if another driver hits your parked car and accepts liability, or if their insurer covers costs. If the driver can’t be traced, MIB may handle the claim.
The claim may be disputed and investigated. If insurers can’t agree, liability could be split, turning a non-fault accident into shared fault.
Yes, but you must declare the accident when applying. Some providers may increase prices, while others may be more lenient, so it pays to compare.