How to Reduce Car Insurance After a Claim: UK Guide (2026)

If you’ve made a car insurance claim in the UK, your premium is likely to rise—often by 20% to 40%—when you renew. However, you can still reduce your car insurance after a claim by shopping around, increasing your excess, using telematics, and taking advanced driving courses. This guide explains how claims affect your premium and actionable steps to save.

---

How Car Insurance Claims Affect Your Premium

Making a car insurance claim in the UK almost always leads to higher premiums at renewal—even if the accident wasn’t your fault. Insurers view claimants as higher risk, and this is reflected in the increased cost of cover.

Average Premium Increases After a Claim

According to data from the Association of British Insurers (ABI), the average fully comprehensive car insurance premium in the UK was £561 in 2025. After a fault claim, premiums typically rise by 20% to 40%. For non-fault claims, the increase is lower but still significant—usually 10% to 20%.

Example:
If your premium was £500 before a fault claim, you might pay £600–£700 at renewal.

Claim Type	Typical Premium Increase	Example Old Premium	Example New Premium
Fault	20%–40%	£500	£600–£700
Non-fault	10%–20%	£500	£550–£600
Windscreen Only	0%–5%	£500	£500–£525

Note: The exact increase depends on your insurer, claim details, and personal profile. Some specialist providers may penalise claims more heavily.

Why Do Premiums Go Up?

Insurers use statistical models that show drivers who have claimed are more likely to claim again. Even non-fault claims suggest increased risk, as you may drive in higher-risk areas or at busier times. This is why your premium rises regardless of blame.

Impact on No Claims Bonus (NCB)

Your No Claims Bonus (NCB) is a discount for each year you don’t claim—up to 60% or more after five years. A claim can reduce or remove your NCB, making your renewal price jump even higher.

---

Protected vs Unprotected No Claims Bonus

Your NCB is one of the most valuable discounts you can have. Whether you’ve protected it or not will affect how much your premium rises after a claim.

What Is Protected NCB?

Protected NCB is an optional add-on (costing around £20–£40 per year) that allows you to make a set number of claims without losing your NCB. Typically, you can have one or two claims in three years and keep your discount.

Important:
Protecting your NCB stops you losing the discount, but it doesn’t guarantee your premium won’t rise. Insurers may still increase your base premium due to the claim, but the NCB discount remains.

Unprotected NCB: What Happens?

If your NCB isn’t protected, a single claim can reduce your bonus by two years or more. For example, if you had five years’ NCB and made a fault claim, you might drop to three years’ NCB at renewal—losing a significant discount.

NCB Years Before Claim	NCB Years After Fault Claim (Unprotected)	NCB Years After Fault Claim (Protected)
5	3	5
3	1	3
1	0	1

Should You Protect Your NCB?

If you have four or more years’ NCB, protecting it is usually worthwhile. However, always check the cost of the add-on versus the potential savings. Some insurers offer “step-back” protection, where your NCB drops by one year instead of two after a claim.

---

Fault vs Non-Fault Claims: What’s the Difference?

How your claim is classified—fault or non-fault—matters for your premium and NCB.

What Is a Fault Claim?

A fault claim is any claim where your insurer pays out and cannot recover the cost from another party. This includes:

• Accidents where you are to blame
• Hit-and-run incidents (if the other driver isn’t found)
• Claims where blame can’t be established

What Is a Non-Fault Claim?

A non-fault claim is when your insurer recovers all costs from another party. For example, if someone hits your parked car and their insurer pays for the repairs, your claim is “non-fault”.

Key Point:
Even non-fault claims are recorded on your insurance record and can increase your premium, though usually less than fault claims.

How Insurers View Each Type

Claim Type	Impact on NCB (Unprotected)	Typical Premium Increase	Example Scenario
Fault	Lose 2+ years	20%–40%	Rear-ending another car
Non-fault	Usually no loss	10%–20%	Hit by another driver, not at fault
Partial	May lose 1 year	15%–30%	Blame is shared

Windscreen and Glass Claims

Most insurers do not penalise you for windscreen or glass-only claims. Check your policy wording, as some may still record these and increase your premium slightly.

---

How Long Do Claims Stay on Your Record?

When you claim, the details are recorded in the Claims and Underwriting Exchange (CUE) database, managed by Motor Insurers’ Bureau. All UK insurers can access this information when you apply for cover.

How Long Are Claims Visible?

• Claims are kept on CUE for six years from the date of the incident.
• Insurers usually ask for details of any claims in the past five years when you get a quote.
• Some providers may ask for six years’ history.

Tip:
You must declare all claims when asked—even if you switched insurers or the claim was non-fault. Failing to disclose can invalidate your policy.

What About Minor Incidents?

Even if you don’t claim, you may need to declare incidents where you notified your insurer (e.g., a minor bump you reported but paid for yourself).

Can You Remove a Claim Early?

No. Claims remain on your record for the full period. The impact on your premium lessens each year, but you must disclose them when asked.

---

Shopping Around After a Claim

One of the most effective ways to reduce your car insurance after a claim is to shop around at renewal. Insurers price risk differently, and some are more competitive for drivers with recent claims.

Why Loyalty Rarely Pays

The Financial Conduct Authority (FCA) banned “price walking” in 2022, but many insurers still offer better deals to new customers. Your renewal quote after a claim is unlikely to be the cheapest on the market.

How to Compare Effectively

1. Start Early: Begin comparing quotes three to four weeks before renewal.
2. Use Multiple Comparison Sites: Try MoneySuperMarket, Compare the Market, and GoCompare.
3. Check Direct Insurers: Some brands like Direct Line and Aviva may not appear on comparison sites.
4. Be Accurate: Disclose all claims and convictions for the past five years.
5. Tailor Your Cover: Adjust your excess, mileage, and cover level to see how it affects the price.

Specialist Insurers

If you have multiple claims, consider brokers or insurers specialising in higher-risk drivers, such as Adrian Flux or Swinton. They may offer more competitive rates than mainstream brands.

Provider Type	Best For	Example Brands
Mainstream Insurers	0–1 recent claims	Aviva, Direct Line, LV=
Specialist Brokers	2+ claims, convictions	Adrian Flux, Swinton, A-Plan
Online-Only Providers	Telematics, young drivers	By Miles, ManyPets, Marmalade

Don’t Auto-Renew

Letting your policy auto-renew after a claim is almost always more expensive. Always compare and switch if you find a better deal.

---

Using Excess Strategies to Lower Your Premium

The “excess” is the amount you pay towards a claim. Adjusting your excess can help reduce your premium—especially after a claim.

Voluntary vs Compulsory Excess

• Compulsory Excess: Set by the insurer, non-negotiable.
• Voluntary Excess: You choose this amount, usually between £100 and £500.

Increasing your voluntary excess can lower your premium, but only set an amount you can afford to pay if you claim.

Example:
Raising your voluntary excess from £100 to £250 could reduce your premium by 5%–10%.

How Much Should You Set?

Voluntary Excess	Typical Premium Reduction	Risk to You
£100	Baseline	Low out-of-pocket
£250	5%–10%	Manageable
£500	10%–20%	High if you claim

Excess Insurance

You can buy separate “excess insurance” (from £20/year) to cover your excess if you do need to claim. This can be a good safety net if you set a higher excess to lower your premium.

---

Advanced Driving Courses: Do They Help?

Completing an advanced driving course can show insurers you’re a safer driver, which may help reduce your premium after a claim.

Recognised Courses

The most widely recognised course is the IAM RoadSmart Advanced Driver. Other options include RoSPA Advanced Driving and the Pass Plus scheme for new drivers.

Typical Savings

Not all insurers offer discounts, but those that do may reduce your premium by 5%–15% if you complete an advanced course. Always check with your insurer before booking.

Course	Cost	Typical Discount	Recognised By
IAM RoadSmart	£149–£200	5%–15%	LV=, Direct Line, Saga
RoSPA Advanced	£60–£80	5%–10%	Some brokers
Pass Plus	£150–£200	0%–10%	Mainly for young drivers

How to Prove Completion

You’ll receive a certificate after passing. Provide this to your insurer when you renew or switch. Some comparison sites allow you to declare advanced driving status for tailored quotes.

---

Telematics (Black Box) as a Reset Button

Telematics insurance uses a device or app to monitor your driving. For drivers with a recent claim, telematics can help “reset” your risk profile and lower your premium faster.

How Telematics Works

A black box records data such as:

• Speed
• Acceleration and braking
• Cornering
• Time of day you drive

Safer driving leads to lower renewal premiums—even if you’ve claimed recently.

Who Should Consider Telematics?

• Young drivers (under 25)
• Drivers with recent claims or convictions
• Anyone struggling to find affordable cover

Potential Savings

Telematics policies can be 10%–30% cheaper than standard policies for drivers with claims. Some providers, like By Miles and ManyPets, offer pay-as-you-drive or app-based cover.

Telematics Provider	Typical Saving (after claim)	Key Features
By Miles	15%–30%	Pay-per-mile, app-based
ManyPets	10%–25%	App, rewards for safe driving
Marmalade	10%–20%	Young drivers, black box

Downsides to Consider

• Driving at night or in high-risk areas may increase your premium.
• Poor driving scores can lead to higher prices or even policy cancellation.

---

Additional Tips to Reduce Car Insurance After a Claim

Beyond the main strategies above, there are several other ways to keep your premium down after a claim.

1. Review Your Cover Level

• Comprehensive vs Third Party: Sometimes, comprehensive cover is cheaper than third party, as it attracts lower-risk drivers.
• Remove Unnecessary Extras: Deselect add-ons you don’t need (e.g., courtesy car, legal cover) to reduce your premium.

2. Update Your Details

• Reduce Mileage: Lower annual mileage can cut costs.
• Improve Security: Install an approved alarm or tracker.
• Change Parking Location: Park in a garage or driveway if possible.

3. Add a Named Driver

Adding an experienced, claim-free named driver (such as a parent or partner) can sometimes reduce your premium. Never add someone as the main driver if they’re not—that’s “fronting” and is illegal.

4. Pay Annually

Paying your premium in one lump sum avoids interest charges (often 10%–15% APR) compared to monthly payments.

5. Check for Group Discounts

Some employers, unions, or professional bodies offer group car insurance schemes with better rates—even if you’ve claimed recently.

6. Avoid Small Claims

If the damage is minor, consider paying for repairs yourself to protect your NCB and avoid a premium hike. Always report incidents to your insurer, but you don’t have to claim.

---

Conclusion: Take Control of Your Car Insurance After a Claim

A claim will almost always increase your car insurance premium, but you’re not powerless. By understanding how claims affect your NCB and premium, shopping around, adjusting your excess, considering telematics, and taking advanced driving courses, you can take practical steps to reduce your costs. Always compare quotes, disclose claims honestly, and review your cover to find savings.

For more guidance, visit MoneyHelper or the FCA’s consumer insurance pages.

Take action at your next renewal—don’t let a claim dictate your premium for years to come.