No-Fault Claim
A no-fault claim is an insurance claim where you are not responsible for the incident. In motor insurance, a no-fault claim means the accident was caused by another party — but the term has implications for your premium and no-claims discount that many policyholders do not expect.
Definition
A no-fault claim is an insurance claim arising from an incident for which the policyholder bears no responsibility. In motor insurance — where the term is most commonly used — it means the accident was caused by another driver, and the policyholder's insurer pays out (or seeks recovery from the at-fault party) without attributing blame to their client.
The term is sometimes used loosely to mean "any claim where I wasn't at fault." But in insurer practice, the classification depends less on actual fault and more on whether costs are recovered from the third party. An unrecovered no-fault claim — where the other driver is uninsured, untraceable, or successfully disputes liability — may still be treated as a "fault" claim for NCD purposes.
No-fault claim FAQ
Frequently asked questions
- Not automatically. If your insurer cannot recover costs from the at-fault party's insurer — for example because the other driver is uninsured or disputes liability — the claim may be treated as unrecovered and your NCD could be affected. "No-fault claim" describes who caused the accident, not whether the costs are recovered. See no-claims bonus for how NCD is affected by different claim types.
- Yes. All claims — fault and no-fault — are typically recorded on your insurance claims history and shared via industry databases. When you switch insurer and are asked about claims in the past 3–5 years, you must declare no-fault claims too. Failing to disclose a claim can void a policy or lead to declined claims. See material fact for disclosure obligations.
- You can claim through your own insurer, who will then seek to recover costs from the at-fault party's insurer (subrogation). Alternatively, you may approach the third-party insurer directly. Using your own insurer is often simpler — they manage the claim on your behalf — but may temporarily affect your NCD until recovery is confirmed. Some credit hire companies offer to manage the process without involving your insurer at all, but this route has its own risks.
- Insurers sometimes classify a claim as "fault" if they cannot recover costs from a third party — not because you caused the accident, but because liability cannot be established or costs are unrecovered. This is a technical classification for accounting purposes. It does not mean you were legally at fault. The distinction matters for how your NCD is affected. Always ask your insurer how a claim is classified before accepting their offer to settle.