Car insurance firms may refuse to continue to offer coverage or refuse to pay out on later repairs if they learn your car was already damaged. This
Car insurance firms may refuse to continue to offer coverage or refuse to pay out on later repairs if they learn your car was already damaged. This could be the case if you have a larger accident which may have been caused by damage sustained in the first collision.
“Damage which is inconsistent with a claim may mean that you are denied.”
Many customers may refuse to inform car insurance firms due to concerns any damage could affect their overall premiums even if they do not claim.
Confused.com warns any damage might change your premiums but is by no means guaranteed and is up to the firm’s discretion.
Premiums could increase if an insurer considers your overall risk of making a future claim has increased.
They say any accident puts you in a higher risk category and insurance firms may try to off-set this risk against your premium.
However firms will not be trying to re-coup the amount paid out by damage at this stage meaning a price rise may not be considered.
Research from MoneySuperMarket revealed the cost of having a car accident stands at £415 in added charges to motorists, including car insurance changes.
They warn one simple accident can add up to nine percent or £69 to a driver’s premium at the point of renewal.
This increase has ensured that although 37 percent of drivers have been involved in some sort of accident over the past five years, a massive one quarter did not make a claim on an agreement.
Dave Merrick, car insurance expert at MoneySupertMarket, says in some cases it could be more “cost efficient” to make a claim rather than pay for damage themselves.
But he also warns drivers needed to declare incidents “regardless of who is at fault” to ensure motorists’ policies are not invalidated.
Mr Merrick said: “Our research shows that claiming after an accident could potentially add £69 to your premium, which may explain why a quarter of drivers who have an accident do not make a claim to their insurer.
“In some cases, it can be more cost efficient to make a claim rather than paying for the costs yourself.
“Whatever you decide, you should always let you insurer know. Most policies will have a clause that requires you to declare any incidents, regardless of who is at fault. Failing to do so could invalidate your policy.”