Motor coverage can be sometimes tricky in most countries and UK makes no difference. There are many disputes over this type of insurance. One big problem is the loss of the “no claims discount”. This happens when a company has to pay when the driver says he is guilty. The owner of the policy then has to inform the insurer of the accident but they are not obliged to make claims. If there is no damage, then the insurer is notified and that is all.
Also, there are some people that agree to pay for the damages by themselves and then they give the bill to the insurance. According to ombudsman, a partial cure must be adopted and it exists in many countries. But such a register is not in UK.
Moreover, when the drivers are insured by the same identical company, there is often a contention area regarding the apportionment of the blame and also the result effect. In this case sometimes the insurer can decide that both parties are to blame. On the same time, both parties can lose the discounts. This internal matter is much debated in UK.
The ‘Knock for Knock’ agreement can also be the cause for trouble with motorists. These are accounting procedures with the purpose of reducing the costs. Ombudsman states that insurance companies must protect themselves against these unfair implementations. But in the last few years these types of agreements have been abolished.
Another area of contention is the amount of the “write-off”. Usually the best evidence available is taken into consideration.
The scope of “cover to drive” is often misunderstood. When a name of another person is on the certificate this does not mean they can drive other vehicles. This extension, to drive other vehicles, has to be solved depending on the case.