Making a declare will increase the price of car insurance by £ 184 – your cash – your cash

Taking out your car insurance increases the cost of an annual policy by an average of £ 184, research shows.

According to data from Comparethemarket, if a driver makes a claim for their vehicle being stolen or in an accident, awards rise to an average of £ 844.

This is significantly more than the typical £ 660 premium for a driver who has not made a claim in the past five years.

However, insurance costs typically decrease every year if a motorist doesn't make any new claims after their first incident. The average premium for a driver who filed a claim a year or two ago is £ 705.

The comparison site said the number of claims has increased in recent months as more people drive after the Covid restrictions were eased.

The impact of making a claim on the cost of a driver's annual premium varies significantly depending on whether or not they were responsible for the incident.

The typical premium for a driver who has been involved in an accident in the past five years is £ 742. If another driver is to blame, the average premium is £ 640- £ 102 cheaper.

If both parties are at fault, the typical premium is £ 778.

Unsurprisingly, serious incidents add the most to premiums. The average premium for a driver who has had their car written off in an accident over the past five years is £ 748.

While the driver does not need to make an insurance claim in the event of an accident, he should inform his insurer.

“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 may refuse to adhere to your policy for failing to report it, ”said Dan Hutson, Head of Car Insurance at Comparethemarket.

"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."

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