You are here: Home - Insurance - News -

Making a claim adds £184 to cost of car insurance

Written by:
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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week