Make a Declare – The Value of Your Automobile Insurance Premium – The Cash Pages
The comparison website stated that the typical premium for a driver who has not made a claim in the past five years is £ 660. However, this rose to an average of £ 844 for those who filed a lawsuit for theft or an accident of their vehicle.
Still, insurance costs tend to decrease every year if a motorist doesn't file a new claim after the first incident, explainsvergleichenthemarket.com.
In fact, the average premium for a driver who filed a claim a year or two ago was £ 705.
Rise in claims
The price comparison site highlights the cost differential based on predictions that an increase in insurance claims could force more motorists to pay higher premiums as Covid-19 restrictions are lifted and more car journeys are made.
In the spring (March 21 to May 21), insurance claims increased by 39% compared to last winter (December 20 to February 21), according to data from Comparethemarket.
In addition, a further increase in claims can be expected in the coming weeks after the end of the Covid restrictions on July 19.
Claims costs – ranges
The impact of making a claim on the cost of a driver's annual premium varied significantly depending on whether they were responsible for the incident, the investigation found.
The typical premium for a driver responsible for an incident in the past five years was £ 742.
If another driver was responsible for the incident, the average premium was £ 640-102 cheaper. If both parties were to blame for the incident, the typical premium would be £ 778.
As expected, the most serious incidents increased premiums the most. The average premium for a driver who had written off their car over the past five years was £ 748. This was £ 88 more than the average premium for an unqualified driver during that period.
The average premium for a driver whose car was stolen in the past five years was £ 836 to £ 175 higher than the average for a driver without compensation.
Dan Hutson, Head of Car Insurance, Comparethemarket.com, urged motorists to be careful if they planned to drive more often as travel restrictions have now been lifted as it can make renewing car insurance more costly.
“Whether or not you were responsible for an accident, a claim report usually increases your premium when you extend it,” he said.
Shopping in the area
He explained that the best way to minimize the impact on premiums for those who have made a claim is to look for a cheaper deal when it was time to find a new policy.
Dan said, "Drivers can typically save £ 92 on auto insurance when they switch."
He added, “If you've had an accident, you don't need to use your insurance. However, you must inform your insurer about the incident, even if you are not at fault.
“It may be tempting to keep calm, especially if you think it might save you from a price hike. But if your insurer later finds out from the other driver or party, they could refuse to fulfill your policy because they didn't report it.
"Any increase in your premium is usually much cheaper than the thousands of pounds it could cost to cover out of pocket repairs after an accident."