Deciding whether to make an insurance claim isn’t always straightforward.
While insurance is there to protect you when things go wrong, making a claim can sometimes affect your future premiums and No Claims Discount. Understanding when it’s worth claiming—and when it might be better to pay for repairs yourself—can help you make a more informed decision.
Visit our valuation guidance hub for more expert guides on insurance, claims, and reducing the cost of motoring.
Here’s everything you need to know.
Should You Report Minor Accidents to Your Insurer?
Even if you don’t intend to make a claim, most insurers require you to inform them about any accident involving your vehicle, regardless of who was at fault.
This includes:
- Minor bumps and scrapes
- Parking incidents
- Non-fault accidents
- Damage caused by an unknown third party
While you may decide not to claim, failing to notify your insurer could create complications later if a future claim is made.
For example, if your vehicle is inspected after another incident and previously unreported damage is discovered, your insurer may ask questions about when and how the damage occurred.
It’s also worth remembering that if another driver was involved, they may report the incident to their insurer, meaning your insurer could be notified anyway.
Always check your policy terms and conditions to understand your reporting obligations.
Will Your Insurance Increase If You Don’t Make a Claim?
Possibly.
Many insurers consider accident history when calculating premiums, even if no claim was made.
Insurers assess risk using a variety of factors, including:
- Previous accidents
- Claims history
- Driving experience
- Vehicle type
- Annual mileage
Being involved in an accident doesn’t automatically mean your premium will increase significantly, but it may influence future quotes.
Every insurer uses different underwriting criteria, so the impact can vary.
How Long Do You Have to Notify Your Insurer?
Most insurers expect you to report an accident as soon as reasonably possible.
The exact timeframe varies depending on your insurer and policy wording.
Some policies may specify:
- Within 24 hours
- Within 48 hours
- As soon as reasonably practicable
Always check your policy documents to ensure you comply with the reporting requirements.
Things to Consider Before Making a Claim
Before making a claim, it’s worth considering the potential financial impact.
Your No Claims Discount
If you’ve built up several years of No Claims Discount (NCD), making a claim could reduce or remove those savings unless you’ve purchased protected NCD cover.
Consider whether the value of the claim outweighs the potential loss of your discount.
Your Excess
Your insurance excess is the amount you’ll contribute towards any claim.
This may include:
- Compulsory excess
- Voluntary excess
In some cases, minor repairs may cost less than your excess, making a claim less worthwhile.
The Cost of Repairs
If the damage is relatively minor, obtaining repair quotes before claiming can help you compare the costs.
Paying for repairs privately may sometimes be more cost-effective than making a claim.
Future Premium Increases
Making a claim can affect future premiums, particularly if you were at fault.
It’s worth considering both the immediate benefit of claiming and the potential long-term cost.
How to Make an Insurance Claim
If your vehicle has been stolen, seriously damaged, or involved in a major collision, making a claim is often the most practical option.
The process generally involves:
- Contacting your insurer.
- Reporting the incident.
- Providing supporting evidence where available.
- Supplying details of any other parties involved.
- Allowing the insurer to investigate the claim.
Useful evidence may include:
- Photographs
- Dashcam footage
- Witness details
- Police reference numbers (if applicable)
Your insurer will explain the next steps and keep you updated throughout the process.
Will Making a Claim Affect Your Premium?
In many cases, yes.
A claim becomes part of your insurance history and may influence future premiums.
Factors that insurers often consider include:
- Whether you were at fault
- The value of the claim
- Your previous claims history
- The type of incident
However, every insurer assesses risk differently, so the impact can vary.
Certain claims, such as windscreen repairs, may have little or no impact on premiums depending on the policy.
How Long Does an Insurance Claim Take to Settle?
The length of time depends on the complexity of the claim.
Straightforward Claims
Claims where liability is clear and accepted by all parties may be settled within a few weeks.
More Complex Claims
Claims can take several months if:
- Liability is disputed
- Multiple vehicles are involved
- Injuries are being investigated
- Additional evidence is required
The more complex the circumstances, the longer the process is likely to take.
When Is It Worth Making a Claim?
Making a claim is generally worth considering when:
- Repair costs are substantial
- Your vehicle has been stolen
- There is significant damage
- Another party is clearly responsible
- Injuries are involved
For smaller repairs, comparing the repair costs against your excess and the potential impact on future premiums can help you decide whether claiming is the best option.
For more information on insurance, check out our article on The Motor Ombudsman: What Is It and What Does It Do?
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