HM Courts & Tribunals - motor claim against me

[LightandAiry]

In December 2022 I had a minor accident - my fault - clipped the corner of someone's Mercedes on a sharp bend and it left a scratch. I offered to pay for the damage but it would cost over £1000 so I gave him my Insurer's details. I've just received a letter from the courts saying I owe the person money, a lot more than the figure from the quote.

They claimed on their own insurance instead of mine and want me to pay for the reduction of the value of their car due to the accident. I've passed the matter on to my insurance company, but I'd like to understand why would someone claim on their own insurance when they had the opportunity to claim from someone elses, and all this time later go after me. Think he has a no win no fee solicitor.

Has anyone had the same thing happen?

When I was hit by someone accepting liability I went home and told my insurance company - giving them the ladies details - and she rang and told her insurance company.

Did you ring your insurance company and register the accident?

Because he's got to report it to his insurers anyway, and that's what he pays his premiums for.

Isn't that how insurance works? His company make sure he's not left without a car etc (where appropriate) and his company claims from yours for fixing the damage?

I don't get how a scratch can reduce the value of a car, except for by the amount it costs to fix the scratch.

As another poster says, that is how insurance works. If you have an accident, you claim from your insurance. If another driver is at fault, your insurer will claim from their insurance.

If they issued a claim your insurance company have potentially not been responding to demands for payment (can happen, insurers have thousands of claims and some occasionally get overlooked). Just keep an eye on this and make sure your insurers pay the claim.

There's an argument that a car that's all original and has never been in an accident is worth more than one that's had bits replaced/fixed. Some lawyers will push the boundaries of this argument quite a lot.
https://motorway.co.uk/sell-my-car/guides/diminished-value#:~:text=Essentially%2C%20it%20is%20the%20money,make%20up%20for%20this%20depreciation.

I reported an accident to my insurer. 100% other person's fault. My insurer fixed my car and then billed the other insurer. That's quite standard. Did you not tell your insurer? Your insurer won't fix anything unless you tell them - otherwise randos could phone up anyone's insurer and say they want stuff done.

I did tell my insurer. I didn't expect a court claim but would expect him to claim from my insurance

Not sure I've made this clear

@Feelingstrange2 yes I did ring my insurance company. I didn't expect a court summons accused of reducing the value of his car.

@LiveOutLoudRose thanks that may explain it

If it was repaired he cannot also claim loss of value. Did his insurance company contact yours? Presumably this is via the small claims process?

It is not normal for a driver in an accident to claim direct from the other driver's insurance even when the other driver admits fault. You normally claim from your own insurance, and they then try to recover any money they have paid out from the other driver's insurance.

Yes you can, the idea behind the claim is that even if it's been repaired, a car that's been in a crash has lost resale value over a pristine one. Punchy claim IMO but it is a thing.

@AsTheyPulledYouOutOfTheOxygenTent thanks, this feels very unfair. It was only a scratch!

@LIZS yes this is through the small claims court. I've never heard of this before....my insurance company have taken it on. I hope I don't have to attend court.

@LIZS I don't know if his insurance company contacted mine, he certainly had all the details

It would be surprising if his insurers did not contact yours. The fact this is going to court does not necessarily mean your insurers weren't responding as a previous poster suggests. It simply means they haven't agreed. It could be that your insurers don't agree with his as to how much his claim is worth, e.g. they may not agree that his car has lost any value.

I hope the solicitors (from my legal cover) can get this person off my back. That sounds likely @prh47bridge if they don't agree he wants £3000, which I am assuming if the claim goes in his favour my insurance company will pay. Thanks for your reply.

It was slight damage.

Thanks everyone for replying

@LightandAiry When you refer to a letter from the Court Service saying you owe the money is it actually a judgment against you - ie an order for you to pay? I suspect not and that it's a claim form.

Usually County Court proceedings for a small claim start with what used to be called a summons. A formal notice telling the defendant that the claimant alleges they owe sum £x and asking them to admit, defend or make a counterclaim. The terminology has changed down the years but the principle is the same.

As long as you've sent the paperwork from the court to your insurer they, and their solicitors are dealing with it it's nothing to worry about.

It may go to a hearing but that's pretty much the exception; once barristers are on their hind legs in front of a court the costs go off scale.

The lawyers tend to play around with each other until one or the other's nerve, and/or that of their client, fails and they agree a settlement figure.

Yes, your insurance company will pay if his claim succeeds. They will also cover all your legal costs. You may have to attend court if it gets that far, but it won't cost you anything.

Just to clarify, even where an insurance company is dealing with the claim, you have to be named personally as the defendant I.e. the claim form can’t be a claim against Admiral. That’s why you have been named and served directly. As long as your insurers agree that they are covering the claim (which it sounds like they are) you can just leave them to it. However they may need you to assist them if any evidence is required about what happened.

Sounds like he is trying it on

As long as you had a picture of the damage

That’s not correct re naming someone personally as Defendant. if indemnity is granted D can be an insurance company under the EU Regs as amended after Brexit. If indemnity is not granted then the insurer will need to be joined in as a co-Defendant as RTA insurer so they have a standing in the claim to protect their financial interest.

This will be a Diminution in Value claim that are starting to increase. Your insurance company will have paid the repair costs and that is the end of their involvement. The other driver can’t claim diminution from them, but they can from yours. Each will be handled on their own facts. The claim is more likely to succeed for newer vehicles than old, if fillers have been used, the vehicle ‘stretched’ to fit replacement parts or any welding was done. There should be an engineers report attached to the court documents. That will explain what damage was caused and how the DIM claim has been calculated.