Car Insurance.

[geoffrey]

Someone reversed into a friends car and caused some damage. My friend notified his insurance company but later that day the woman who reversed into him came around and apologised for the second time and offered to pay the bill of £245 personally and that she did immediately the repair was done and my friend immediately informed his insurance company that he would not be proceeding with the claim. However, when his insurance renewal arrived there was a considerable increase and he was informed that it was due to that incident even though he made no claim. Surely this is wrong?

[des8]

Re: Car Insurance.

Unfortunately it is not wrong.
The fact that your friend withdrew the claim does not remove the incident from the records.
The fact that he was not at fault does not remove the incident from the records.
Any incident such as this SHOULD be reported to the insurers (of course many won't be).

Each insurance company has its own way of rating proposals.
Some companies will ignore a few minor non fault accidents, others will factor even one into its calculations.
It is perfectly OK for an insurer to increase premiums at renewal without explanation.
It might be bad business practice, but it is perfectly correct.
An insured can, on the other hand, try negotiating with the company, or seek cover elsewhwere.