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Will car insurance go up after a claim?

It doesn’t matter what type of claim you make, it can affect your next car insurance quote. Even if you are involved in an accident that is not your fault or your car has been stolen, your car insurance is likely to go up.

By how much will my car insurance go up after a claim?

It’s difficult to know how much your insurance will increase by. Some motorists have found that premiums have gone up by as much as one third.

Many people are surprised to find their premiums go up after an accident that was not their fault. Insurance companies justify this by saying that any claims add to their risks of insuring cars.

Will making a claim affect my no claims discount?

Some insurance policies have a protected no claims discount, meaning that a claim will not affect the discount. If your policy does not have a protected no claims discount, you will lose some of it and this will increase the insurance cost.

Whether you have a protected no claims discount or not, your car insurance cost will go up after making a claim.

Finding a cheaper policy

After you have made a claim, when it comes time to renew the policy, the new quote will be higher based on the fact that a claim has been made. Of course, you can always try to find cheaper insurance by using a broker, price comparison website or going directly to an insurance company. When applying for a quote, you must tell the broker, comparison site or insurance company the details of any accidents you have been involved in over the last five years, even if they were not your fault. Reported accidents must include ones for which no claims were made.

Don’t be tempted to leave relevant information undisclosed in the hope of getting a cheaper quote. It is very likely that any non-disclosure will be picked up as insurance companies share data. Any failure to disclose accident and claim details will invalidate the policy.

If your household has more than one car, insuring multiple cars on the same policy may reduce the cost, but if one driver has made a claim and others haven’t, this could mean you do not save anything with a multi-car policy.

If you have low annual mileage, you may be able to get a quote based on not driving far each year. You can also reduce premiums by using the car only for social purposes and not for work.

You could change your car for a smaller one that is in a lower insurance band. Another way to save money is to increase the excess amount paid for any claim.

Driving after your car insurance goes up

By law, cars have to be insured. Car insurance gives you the peace of mind of knowing that if you are involved in an accident, repairs will be covered. Unfortunately, if a claim is made, your insurance premiums will inevitably go up. Even after shopping around you could find that you pay more for a new policy than your existing policy. 

If you rely on your car, you may have no option but to pay extra for car insurance after a claim. However, as mentioned previously, there are ways to keep your insurance costs to a minimum, and it’s important to shop around to make sure you get the best deal.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

Unfortunately, making any kind of insurance claim will often increase your renewal premium – even if the accident wasn’t your fault.

Car insurance can go up for a number of reasons – especially if you’ve had an accident or received a fixed penalty in the last year. If you haven’t, you might find you’re just getting a poor deal when your deal automatically renews – so don’t be afraid to shop around until you’ve got a better price.

A no claims bonus is a discount that’s applied after your insurance premium is calculated by a car insurance provider. The discount doesn’t stop your premium from going up; instead, it simply gives you a percentage off your premium – and that discount grows with every claim-free motoring year you have.

Insurers generally do not offer the facility to put your car insurance on hold – and cancelling and restarting your car insurance cover rarely makes financial sense. If you’ve got a reason for needing a break in cover, talk to a specialist company who cater for your circumstances – like classic car insurers or student policy providers.

Backdating car insurance cannot be done under any circumstances. Since it is a criminal offence to do so, you will not find any broker or insurance company who will be able to do this for you.

Car insurance is usually calculated based on the likelihood of you making a claim in the future. A range of factors are taken into consideration too, such as age, occupation, your driving history and the details of your vehicle.

Unfortunately, it’s impossible to accurately calculate how much your car insurance is going to cost without getting a range of quotes. As well as looking at national driving statistics, insurers will seek a huge amount of information about you and your vehicle before deciding on a personalised price.

If you’ve had an accident of any kind, you’ll need to report it to your insurer soon afterwards. When you do, they’ll seek a detailed explanation of what’s happened and assess the damage done to your car. When they have a clear understanding of what’s occurred – and assuming you have fully comprehensive cover, they’ll arrange to repair your vehicle – or pay its market value if it’s written off.

If you make a claim on your insurance policy, car insurance excess is the amount you will pay towards that claim. There are two types of car insurance excess – one compulsory, the other voluntary. The compulsory excess that your insurance company sets is the amount you must pay towards any repair done to your vehicle if you cause an accident. The voluntary excess is an optional amount on top of this – which means you’ll pay more towards repairs – but your annual premium price will come down in exchange.

In the UK, every car is allocated an insurance group. This helps insurance companies determine the cost of cover. The groups run from 1, which offers the cheapest premiums, to 50, which offers the highest. The cheapest car insurance group is therefore group 1.