Why You Should NEVER Apologize!

…and how one innocent sentence could cost you your insurance payout

When you’re involved in a car accident, a pipe bursts in your flat, or a customer slips on your shop floor — what’s the first thing you feel like saying?

“I’m so sorry!”

But here’s the truth:
In the world of insurance, saying “sorry” can be a very expensive mistake.

Let me explain why — and introduce you to a powerful but often misunderstood insurance principle: Subrogation.

What Is Subrogation, and Why Should You Care?

Subrogation is a fancy legal word, but here’s what it means in simple terms:

When your insurer pays out a claim, they gain the right to step into your shoes and recover the loss from the party who actually caused the damage.

Think of your insurer like your Big Brother at school. Someone stole your lunch money, and your Big Brother sees it. He gives you his lunch to make sure you’re fed — but then he goes after the bully to get the money back.

Here’s the catch:
If you’ve already gone to the bully and said:

“It’s okay, I forgive you. I know it was just a mistake…”
You’ve just tied your Big Brother’s hands. He can’t do anything. You’ve compromised his ability to act on your behalf.

In insurance terms: you’ve just compromised subrogation — and that can void your claim.

3 Ways People Accidentally Destroy Their Own Claims

1. Admitting Fault at the Scene

It’s human nature to be polite and take responsibility — even when it’s not clearly your fault.
But saying things like:

“I didn’t see you”
“I’m so sorry, I was in a rush”
“It’s probably my fault”

…could be interpreted as an admission of liability.

2. Making a Side Deal with the Other Party

After an incident, someone may say:

“Let’s sort this out privately — no need to go through insurance.”

If you agree and later decide to claim, the insurer may refuse because the situation is legally compromised. They no longer have the right to pursue the third party, thanks to your agreement.

3. Failing to Report All the Facts

Some people hold back on reporting the details to avoid conflict. But leaving out key facts (or not mentioning the other party’s involvement) can cost you — especially if your insurer needs to recover costs from them.

What You Should Do Instead

✅ Stay calm and polite — but don’t admit fault
✅ Document everything: photos, names, contact info
✅ Report the claim to your insurer as soon as possible
✅ Let the insurer handle all third-party discussions

Remember: Your insurer is your Big Brother.
Their job is to protect you, pay you out, and fight your battles if necessary.
But only if you haven’t already given away the fight.

Bonus: You Might Get Your Excess Back!

Many people don’t realise this:
If your insurer recovers the cost from the responsible party, you may be refunded your excess.
But again — only if you haven’t compromised their legal rights by saying the wrong thing or settling without them.

Final Thought

Subrogation isn’t just a technical clause buried in your policy wording. It’s a powerful tool that protects you — but only works if you understand it and use it wisely.

So next time something goes wrong?

Don’t apologise. Don’t admit fault. Don’t make promises.
Let your insurer fight the fight.

Disclaimer: This article is provided for general information purposes only and does not constitute financial or insurance advice. Every situation is unique, and insurance policies differ in wording and coverage. Always consult your broker or insurer for guidance on your specific circumstances before making any decisions.