Is claiming on your car Insurance always a good idea?

In some cases, claiming on your car insurance isn’t always the best idea. In this article we run through different scenarios and the best way to deal with them.

An introduction to car insurance claims

If you’re involved in an accident and decide to claim on your insurance first and foremost, there’s the cost of the excess on your policy, which could be anything from the first £100 to £500 of the claim.

Following the excess on your insurance you then need to consider how the claim will affect your no claims bonus. If you loose your no claims, when you come to renew your car insurance your premium will be higher. This will remain higher for a number years following the claim. 

If you have just started driving or have been in a previous accident and don’t have a no claims bonus, claiming could still increase the price of your insurance in the future.

Therefore, if you have been involved in minor accident such as clipping your wing mirror on the garage door, it makes financial sense to avoid claiming on your car insurance.

No Fault Claims

Unfortunately, no fault doesn’t mean no cost. Consequently if you’re involved in an accident where your vehicle has been damaged by another, you could still be out of pocket if you decide to claim.

As a recent campaign by Labour’s shadow transport minister John Woodcock has highlighted, blameless motorists can still face premium increases simply because they’ve been involved in an accident.

Calculating the impact

Calculating an estimate for the impact of an accident can help you in deciding whether or not to claim on your car insurance. For example if you calculate the damage to be roughly around a few hundred pounds, you may be better off not claiming at all. 

You can calculate an estimate by using comparison sites. You can then see how much the cost of cover changes based on having no claims compared with having a no-fault claim of a particular value.

Disadvantages for young drivers 

The age of the driver in the accident along with the make and model of the cars involved can have a large impact on whether or not you should claim on your insurance.

For example, for an older Jaguar driver, who is paying a relatively low premium, it is more than likely worth making a claim. This is because the cost of repairs will be significant when compared to the premium.

On the other hand, if you are a younger driver with a relatively old car, a limited no-claims discount and a higher premium, it may be more financially beneficial to replace the damaged parts. 

Legal Requirements 

In the small print on most insurance policies: providers generally say that customers should report any and all accidents, whether they want to pursue a claim or not.

Therefore if you are in an accident but decide that it would be more beneficial not to claim of your insurance you must still remember to report the accident. If you fail to do so and your insurance provider finds out, you could risk your policy being cancelled.

In addition, even if you haven’t made a claim on your insurance, your premiums may still increase in future because you have been involved in an accident.

How we can help

By using Call Brian you don’t need to worry about any of the above. With NO excess, NO loss of No Claims Discount and NO increase in insurance premium, It won’t cost you a penny!

At Call Brian, we have specialists with over 25 years experience in the motor insurance industry, all of whom are keen to provide appropriate advice and support, all of which is free of charge.