Does insurance premium hike depend on claim size?

Honest John Back Room » Motoring discussion
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Sat 2 Mar 2024 15:33
Does insurance premium hike depend on claim size? - Michael Penn

Hi, would really appreciate some insurance advice. My wife (honest!) cut across a curb as she turned onto a major road, and scr@ped the side of our car across a bell bollard, doing serious damage to the door and the sill. We've had a range of estimates to repair, from £4k up to £8k. The bodywork repair shop with the pricier quote seemed more professional and knowledgeable.

We will have to claim on insurance. Is our premium price hike next year likely to be *more* if we go with the higher end quote? In other words, does a costlier claim tend to drive the premium up more, or is the premium increase just a function of the nature of the accident (regardless of costs to repair)?

thanks for any help you can provide!

Edited by Michael Penn on 02/03/2024 at 16:03

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Sat 2 Mar 2024 17:59
Does insurance premium hike depend on claim size? - movilogo

Without knowing how insurers calculate hike it is hard to say as it depends on many variables.

But in general, hike does not vary linearly with total amount of claim i.e. if your damage is £2k vs £4k, your premium hike won't be twice in later case.

Of course, if you claim £4k in two separate claims then it is going up lot higher.

Typically premium rises based on how many times you claimed.

In few cases it can rise significantly if you hit a person (rather than a vehicle) and person dies or undergoes life threating surgery because amount of compensation will be huge.

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Mon 4 Mar 2024 06:32
Does insurance premium hike depend on claim size? - Michael Penn

Thanks, really appreciate the advice!

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Tue 12 Mar 2024 06:23
Does insurance premium hike depend on claim size? - KianClayton

Any update?

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Fri 15 Mar 2024 22:03
Does insurance premium hike depend on claim size? - Michael Penn

Not yet. We've put the claim in but won't know until the insurance is due for renewal what the damage is.

Even then I don't think we'll know for sure what impact the cost of the claim has on the premium increase.

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