Does Making One Car Insurance Claim Increase Your Next Premium?

Yes, making a car insurance claim can impact the premium you pay at the next renewal, but the impact is not always the same. It can depend on the type of claim, your no-claim bonus, the cover you hold and other pricing factors considered at renewal.

Looking at these elements separately makes it easier to understand why one claim may affect your next premium and by how much.

Why One Claim Can Affect Renewal

When you make an own damage claim, the main impact may come through your no-claim bonus. This is a discount linked to claim-free policy periods and applies to the own damage part of the premium.

If you make an eligible own damage claim during the policy period, the NCB available at the next renewal may be affected, unless an applicable NCB protection benefit allows it to continue. As a result, the amount payable at renewal may be higher than it would have been without that claim.

The Claim Does Not Decide the Entire Premium

A car insurance renewal premium is not based on claim history alone. Several policy- and vehicle-related factors may be considered when the renewal quote is calculated.

These may include:

• The Insured Declared Value of the vehicle
• The age and model of the car
• The location of the vehicle
• The type of cover selected
• Add-ons chosen at renewal
• Applicable deductibles
• The available no-claim bonus

This means a change in the final premium cannot always be linked to one claim alone.

Understand the Role of No-Claim Bonus

NCB is relevant to the own damage portion of a motor policy. It rewards a claim-free period through an applicable discount at renewal. After an own damage claim, this discount may be reduced or no longer apply at the following renewal, depending on policy terms.

The renewal amount may therefore appear higher even when other details remain similar. Before making a claim for minor damage, compare the repair requirement with the possible effect on your NCB.

Does Every Type of Claim Have the Same Effect?

No. The effect depends on the type of claim. An own damage claim relates to insured loss or damage to your vehicle and can affect NCB. A claim involving liability to another person is handled differently.

Third party car insurance is intended to address legal liabilities arising from injury, death or damage to another person's property. NCB does not apply to the third-party part of the policy in the same way it applies to own damage cover. This distinction matters when assessing how a claim may affect renewal.

What if You Have NCB Protection?

Some policies allow you to add an NCB protection benefit to eligible own damage or comprehensive cover. Its purpose is to help retain the accumulated no-claim bonus after certain claims, subject to the conditions of the add-on.

The presence of this add-on does not mean every claim will not affect renewal. Limits and conditions may apply. Check the policy wording to understand when the benefit applies.

Other Factors Can Change at Renewal Too

Even without a claim, the amount payable at renewal may not remain the same. The vehicle's Insured Declared Value can change over time. You may also add or remove optional covers, change deductibles or select a different policy structure.

Third-party premium components can also be subject to applicable regulatory pricing. Because several elements make up the final amount, comparing only the previous year's total with the new quote may not show what caused the difference. Review the premium breakdown and identify which component has changed.

What Should You Check after Making a Claim?

Before renewal, review your existing policy and claim record. This helps you understand what may change before the quote is issued.

Check:

• Whether the claim was an own damage or third-party claim
• Whether NCB was available before the claim
• Whether NCB protection applies
• Whether your selected add-ons are changing
• Whether the vehicle's IDV has been revised
• Whether the deductible or policy type is different

If the renewal premium changes, ask the insurance provider for the breakdown rather than assuming the claim is the only reason.

Final Thoughts

One car insurance claim can affect your next renewal premium, particularly when it changes the no-claim bonus on the own damage portion of the policy. However, a claim is only one of several factors that may influence the final amount.

The type of claim, cover selected, IDV, add-ons, and other policy details also matter. Review the renewal breakdown and check the policy terms to understand exactly what has changed.