So, you’ve had an accident, or your car’s been damaged, and now you’re faced with the big question: How will this affect my car insurance? Whether it’s a minor fender bender or a more serious incident, car insurance claims are part and parcel of driving. But many drivers get nervous at the thought of making a claim, unsure of what it means for their premiums, their insurance, and their future driving history.
In this post, we’ll cover everything you need to know about car insurance with claims—from what happens when you make a claim, to how it affects your future premiums, and what you can do to prevent rising costs. We’re here to ease the stress and provide you with clear, actionable insights so you can make smart decisions moving forward.
What Happens When You Make a Car Insurance Claim?
Let’s start with the basics. After an accident or an incident where you need to claim on your car insurance, here’s what you can expect to happen:
1. Reporting the Incident
The first thing you need to do is contact your insurer and report the incident. This is crucial, even if you’re not at fault. Most insurance policies will require you to report any accidents, theft, or damage within a specific time frame (usually within 24-48 hours). Failing to report a claim in time can lead to the denial of your claim.
2. The Claims Process
Once you’ve reported the claim, your insurance company will assign you a claims adjuster (or sometimes it might be handled by the customer service team) who will assess the situation. They may ask for:
- Photos of the damage
- Police reports (if applicable)
- Contact information of any witnesses
- Details of the other parties involved (if it’s a car accident)
They’ll also assess the costs of repairs or damages and decide whether they’ll cover the cost.
3. Claim Approval and Payment
Once your insurer has assessed the situation, they’ll either approve the claim and begin repairs, or they may deny it. If the claim is approved, the insurer will either pay the repair shop directly or reimburse you if you’ve already paid for repairs.
If you’re at fault, the insurer might pay for the damage to the other party’s vehicle, but they won’t cover the damage to your own car unless you have comprehensive or third-party, fire, and theft insurance.
4. No Claims Bonus Impact
One of the biggest concerns after making a claim is the impact on your No Claims Bonus (NCB), which is a discount on your premium for each year you don’t make a claim. If you’ve been driving without making any claims for a while, this bonus can reduce your premiums by up to 60%.
But here’s the catch: if you make a claim, whether or not it’s your fault, your NCB could be affected. Let’s break down the possibilities:
| Type of Claim | Impact on NCB | Explanation |
|---|---|---|
| No Fault Claim | Might lose some NCB | Some insurers may reduce your NCB even if you’re not at fault. |
| At-Fault Claim | Lose all NCB | If the claim is your fault, you will lose your NCB completely. |
| Protected NCB | No loss of NCB | If you’ve opted for Protected NCB, you won’t lose your discount, even if you make a claim. |
5. Premium Increase After a Claim
Once your claim is processed and your insurer has paid out, they’ll likely reassess your premium when it’s time to renew your policy. Here’s the catch: after making a claim, your premium might increase, sometimes substantially. A study by Confused.com found that drivers who make a claim can see their premium increase by as much as £100-£200, depending on the type and severity of the claim.
But don’t panic! While it’s common for premiums to rise after a claim, there are steps you can take to manage the impact.
How to Prevent Your Premiums from Spiking After a Claim
The good news is that you don’t have to be stuck with a higher premium after making a claim. Here are some strategies that might help reduce the impact:
1. Shop Around for Quotes
Just because your current insurer raises your premium doesn’t mean you’re stuck with them. Comparison sites like Compare the Market and GoCompare let you compare prices from different insurers. You could find a better deal with another provider, even after making a claim.
2. Opt for a Higher Excess
If you’re willing to take on a larger share of the cost in the event of a claim, consider increasing your excess. This is the amount you pay upfront when making a claim, and increasing it can reduce your premium. However, be sure that you can afford to pay this amount if the worst happens.
3. Consider Comprehensive Insurance
While third-party insurance is cheaper, it offers less coverage. Comprehensive insurance can sometimes cost a little more, but it might save you money in the long run—especially if you’re likely to make a claim. Comprehensive coverage protects you whether you’re at fault or not, and it often includes additional benefits, such as roadside assistance or a courtesy car.
4. Protect Your No Claims Bonus
If you’ve built up a strong No Claims Bonus, it’s worth paying the extra to protect your NCB. This means you can make a claim and still keep your discount intact when it’s time to renew. Of course, this will cost you a little extra, but it might save you more in the long run.
5. Drive Safely and Avoid Future Claims
If you’ve already made a claim, focus on keeping your driving record spotless moving forward. Avoiding any more claims will help you maintain or rebuild your NCB and reduce your premiums over time.
Other Things to Consider After a Claim
- Your Car’s Repair History: If your car was repaired after a claim, it’s important to keep track of the repairs. If you’re selling the car later, be sure to mention the repairs to the buyer, as this can affect the car’s value.
- Claim Fraud: It’s important to be honest about the details of your claim. Making a fraudulent claim can lead to criminal charges and the cancellation of your policy.
- Small Claims: If the damage is minor and the cost of repairs is relatively low, consider whether it’s worth making a claim at all. Sometimes, paying for the repairs yourself can save you from losing your NCB or facing a premium increase.
Final Thoughts: Don’t Let Claims Be the End of the Road
A car insurance claim doesn’t have to derail your financial journey. While it’s true that claims can lead to higher premiums and potential losses in your NCB, there are steps you can take to minimize the impact. By shopping around for better deals, protecting your No Claims Bonus, and making smart decisions after an incident, you can keep your car insurance costs in check while getting the protection you need.
FAQs About Car Insurance with Claims
Here are some frequently asked questions (FAQs) regarding car insurance claims in the UK. We’ve answered them to help you navigate the claims process and understand the impact on your policy.
1. Will my car insurance premium go up after making a claim?
Yes, it’s common for your premium to rise after you make a claim. According to research, premiums can increase by £100-£200 on average. However, the increase depends on factors like the type of claim, whether you were at fault, and your insurer’s policies.
2. How does making a claim affect my No Claims Bonus (NCB)?
Making a claim can impact your No Claims Bonus (NCB). If you’re at fault, you’ll likely lose your NCB, but if the claim is not your fault, some insurers may still reduce your NCB. You can protect your NCB for an additional cost, which means you won’t lose it even after making a claim.
3. Can I make a claim if the accident wasn’t my fault?
Yes, you can. Even if the accident wasn’t your fault, you are still entitled to make a claim. Your insurance policy should cover you for damage to your own car, as well as any third-party damages. However, keep in mind that your NCB might still be affected, depending on your insurer’s policy.
4. Should I always make a claim after an accident?
Not necessarily. If the damage is minor and the cost of repairs is low, it may be cheaper in the long run to pay for the repairs yourself. Making a claim can affect your premiums and NCB, so weigh the pros and cons before proceeding.
5. What happens if I make a claim and my car is written off?
If your car is written off, the insurance company will typically pay you the car’s market value, minus any excess. If you have a comprehensive policy, you’ll be covered for repairs or replacement. However, if the claim is your fault, you’ll need to pay your excess, and your premiums may increase when you renew your policy.
6. Does making a claim for theft or fire affect my premiums?
Yes, claims for theft or fire can also lead to higher premiums, although the impact might be less than if you’re at fault in an accident. Insurance companies might consider you a higher risk if your car has been stolen or damaged by fire.
7. How can I reduce the impact of a claim on my premiums?
- Shop around for new quotes after your claim is processed.
- Increase your voluntary excess to lower your premium.
- Consider protecting your No Claims Bonus (if you haven’t already).
- Drive safely to avoid future claims and rebuild your NCB.
8. Can I claim on my car insurance if I accidentally damage my car?
Yes, you can make a claim if you accidentally damage your car. If you have comprehensive insurance, you can claim for repairs. Keep in mind that if the accident is your fault, it may affect your NCB and lead to a premium increase.
9. Can I still drive if my car is being repaired after a claim?
Yes, you can still drive while your car is being repaired if your insurance policy allows it. Some policies include a courtesy car as part of your cover while your car is being repaired. If your policy doesn’t cover this, you may have to arrange alternative transport.
10. Will a claim stay on my record forever?
A claim typically stays on your insurance record for 3-5 years. After this period, it may no longer affect your premium. However, during this time, your insurer will likely take it into account when renewing your policy.
