Save, make, understand money


Making a claim adds £184 to cost of car insurance

Joanna Faith
Written By:
Joanna Faith

Claiming on your car insurance adds an average of £184 to the cost of an annual policy, analysis reveals.

Premiums jump to £844 on average if a driver has made a claim because their vehicle has been stolen or in an accident, according to data from Comparethemarket.

This is significantly more than the typical £660 premium for a driver who has made no claims in the past five years.

However, the cost of insurance will typically fall each year if a motorist does not submit any new claims after their initial incident. The average premium for a driver that made a claim between one and two years ago is £705.

The comparison site said claims numbers had increased in recent months as more people are driving following the easing of Covid restrictions.

The impact of making a claim on the cost of a driver’s annual premium varies significantly depending on whether the incident was their fault.

The typical premium for a driver who was at fault for an incident in the past five years is £742. If another driver was to blame, then the average premium is £640 – £102 cheaper.

If both parties are at fault, then the typical premium will cost £778.

Unsurprisingly, serious incidents raise premiums the most. The average premium for a driver who has written off their car in an incident in the past five years is £748.

While drivers do not have to claim on their insurance if they have had an accident, they should inform their insurer.

“It may be tempting to keep quiet, especially if you think it might save you from a price hike. But if your insurer finds out later from the other driver or another party, then they could refuse to honour your policy for failing to report it,” said Dan Hutson, head of motor insurance at Comparethemarket.

“Any increase in your premium will usually be much cheaper than the thousands of pounds it could cost to cover any repairs from an accident out of your own pocket.”