What does "fault claim" mean?
A fault claim doesn’t mean that you were necessarily responsible for the accident. It simply means we haven’t been able to recover the full cost of the claim from another party.
In the insurance world, a claim is considered “fault” when your insurer (Marshmallow) pays out and isn’t reimbursed by someone else’s insurer. This can happen even if someone else was involved.
Common reasons a claim might be settled as fault
Here are the most common scenarios where a claim may be recorded as fault:
1. We couldn’t get the other party’s details
If we don’t have the other driver’s name, contact details, and insurer, we can’t recover the cost of the claim. Without this, we have to settle it as a fault claim.
Tip: If you're ever in an accident, try to safely collect the other party’s full details, even if the damage seems minor.
2. The other party didn’t accept responsibility
Even if you believe the other driver was at fault, they may not agree—and without clear evidence (like dashcam footage or an independent witness), it becomes difficult to prove otherwise. In these cases, insurers often share the cost, or we cover the full cost ourselves.
3. No one else was involved
If your claim was for a single-vehicle incident (like hitting a parked object or skidding into a barrier), it will be classed as a fault claim, as there's no other party from whom we could recover costs.
4. A shared responsibility outcome
Sometimes, both drivers may be partly responsible for what happened. This is called "split liability." Even if you were only partly at fault, we may still need to cover the full cost upfront, and it can be recorded as a fault claim.
Will this affect my No Claims Discount?
Yes, a fault claim usually impacts your No Claims Discount (NCD), unless:
You have NCD Protection on your policy, or
We later recover all costs from the other driver’s insurer (in which case we can update the claim to non-fault and restore your NCD).
Can a fault claim be changed later?
Yes. If the situation changes and we’re able to recover the full cost from the other driver’s insurer later on, we can update the claim to non-fault. We’ll need proof, such as a claims document or a No Claims Discount certificate from a previous insurer that shows the updated status.
What you can do if you disagree with the outcome
If you believe the fault decision is incorrect, we understand that this can be frustrating. Here’s what you can do:
Review any evidence you provided (e.g., dashcam footage, witness details).
Contact your file handler at existingclaims@marshmallow.co - we’re happy to explain the reasoning behind the decision and check if there’s anything else we can do.
Check your legal cover (if you added this to your policy). Legal cover can help you recover losses like your excess or challenge a decision.