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.
