Will claiming on your insurance increase your premium?


Insurance vs private

Will Claiming On Your Insurance Increase Your Premium?

Is claiming on your car insurance always a good idea or is it simply a false economy? It is quite common for many people to get a bump, scuff or scrape on their car in the course of its lifetime, but in such a scenario, should you claim?

For example, if you bumped or scraped the side of your car whilst trying to squeeze into your garage or a narrow parking space , it might not make much financial sense to claim on your insurance.

The majority of drivers will typically have an excess, which can cost anywhere from £50 to £500 (perhaps even more). On top of this, there is also the potential loss of any no-claims bonus you have built up over the years to contend with. This could see your premium rise when you come to renew and it may remain higher for a number of years.

Even if you haven’t yet built up a no-claims bonus, the fact that you’ve made a claim at all may still increase the price of future cover.

Many people may also be quick to assume that if the damage was caused at no fault of their own, then there is no cost. However, even if another motorist admits liability and allows your insurance to receive any repair costs, your premium may still rise.

On the other hand, if you caused an accident, your premiums might rise not only through the loss of no claims, but because you now represent a higher risk in your insurer's eyes.

Studies have also shown that those who have been involved in accidents that weren’t their fault go on to make more claims than those who haven’t. This is because many drivers assume that since the accident wasn’t their fault, their premiums won’t rise.

When deciding whether or not to tell your insurance provider, it is important to take into account the damage caused to your vehicle. If, for whatever reason, you think the safety of the car has been compromised, then it may be best to tell your insurance provider. They’ll want to know that the work being carried out is being completed to a high standard, by an insurer approved repair centre such as Paintwork Express, so that the car is safe to drive and the risk of further accidents is minimised.