It’s a question your insurer will never answer: how much does your car insurance go up after a claim?
Complex algorithms, individual circumstances, the nature of the accident and a list of other factors are all in play, making a definitive answer hard to come by – especially when your premium often rises each year regardless.
Two insurance experts we spoke to on the record couldn’t offer any firm guidance – though they did lift the bonnet on the processes involved and how any increase might be calculated.
Perhaps the only reliable indicator is anecdotal evidence – so we asked Money blog readers for their stories, many of which we’ve included at the bottom of this piece.
They show huge disparities, with some facing 10% to 50% increases, while others were – counterintuitively – quoted a cheaper price when they came up for renewal.
One reader’s premium increased by as much as 207% – and around one in five ended up paying at least 170% more.
A recurring theme was that initial renewal quotes jumped significantly, but some of the edge was taken off by shopping around.
Can you sort it out without involving an insurer?
All of this might make you wonder if it’s cheaper, after a minor accident, to sort things out directly between both parties.
It can be done – but it’s a risky road to go down.
As one insurance insider told us, agreements a few hours after an accident regularly dissolve.
“They all say they’re happy, and then…”
Injuries, real or exaggerated, are not always apparent in the immediate aftermath, and what appears to be superficial damage on, say, your bumper, can end up requiring a new radiator.
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So this route can leave you in a tricky spot, legally and financially – you need to be really sure about who you’re dealing with and it’s always best to seek independent advice.
Don’t forget, too, that most policies will be invalid…
