Can a car insurer change its mind after a payout

[Brad57]

Hi, In February my daughter had an accident where someone ran into the back of her. We were told via phone and in our log in area of their website that the incident was,'not disputed' and that our NCD was not affected. Our car was a write off and we were paid £1200 for it which we received about 6 weeks ago. We have since bought a replacement car (£1700) Now, today we have had an email to say that the other insurer is disputing liability and can we provide a sketch map of the incident and photos of the damage to our car (not possible cus it has been scrapped - against our wishes)

 

This seems very strange to us and a bolt out of the blue. Can anyone advise it they can change their minds and make us pay the money back? No one I have spoken to has ever heard of anything like it.

 

Thanks

Brad57

[Brad57]

Still looking for advice. Now had an email to say that they are hoping for a 50:50 split in the settlement as our account differs from the third party. Anyone know if they can ask for their money back?

[Itokuzu]

Still looking for advice. Now had an email to say that they are hoping for a 50:50 split in the settlement as our account differs from the third party. Anyone know if they can ask for their money back?

 

The only thing I can think of is that they decided to waive your policy excess before they realised that the third party insurers were disputing liability. If they did waive the excess and now agree 50/50 they might ask for 50% of the excess back. However, I think that is highly unlikely.

 

Other than that scenario they cannot ask for any money back from you. You made a claim on the foot of your comprehensive policy as is your right. That is why you insured comprehensively rather than just third party, fire & theft.

 

The worst thing that can happen is that if they do not get a full recovery your No Claims Discount will be affected when you renew next year.

 

Incidentally if the other driver rearended your daughter they would need a very good reason to settle on a 50/50 basis. The vast (and I do mean vast) majority of rear-end accidents settle fully in favour of the front car. To protect the NCD you should press them to seek full recovery.

Edited June 8, 2010 by Itokuzu
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