3 reasons not to claim on your car insurance – and when it’s worth it

Motor insurers paid out a record £11.7bn in car insurance claims last year, according to the Association of British Insurers (ABI). But just because cover is there, doesn’t mean it’s always worth using.

If your car’s damaged, claiming might seem obvious – but with rising excesses and future premiums to consider, it could cost more than it saves.

That doesn’t mean you should keep quiet. Even if you don’t plan to claim, your insurer still expects to know what happened.

Here we reveal three situations where holding back could be the smarter move – and explain when a claim is, and isn’t, worth it.

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1. The repair is cheaper than your excess

If the cost of repairs is lower than your excess, you’re effectively footing the bill yourself – and you could still face higher premiums at renewal.

For example, if a window wiper is stolen and it costs £150 to replace, but your policy excess is £200, you won’t receive any money from your insurer. You could also face higher premiums at renewal just for making a claim.

Not all claims result in a payout, but many still affect how insurers assess your risk. If the repair is affordable, it often makes more sense to pay for it yourself and avoid a formal claim.

• Find out more: how to get cheap car insurance

2. The damage is minor

For older or lower-value cars, minor or cosmetic damage often isn’t worth claiming for – or even fixing.

Say your 12-year-old car picks up a scrape in a car park. It doesn’t affect how it drives, and the repair cost is close to your excess. Claiming might not be worth it, especially if it leads to higher premiums.

In some cases, insurers may write off a car due to relatively minor-looking damage. For example, if your car is worth £1,000 and repairs for something like a dented door and damaged paintwork are quoted at £850, your insurer might decide it’s not worth fixing and declare it a total loss. The payout might not be enough to buy a similar replacement, especially if your car was reliable and well maintained.

If the car runs well and you plan to keep it, leaving the damage as it is could be the more sensible option.

• Find out more: best car insurance companies in the UK 2025

3. Claiming could cut your no-claims discount

Even small claims can have a big knock-on effect on your future premiums.

For example, you reverse into a post while parking, denting your rear door. The repair costs £400. With an excess of £250, your insurer pays £150. 

But the claim knocks two years off your five-year no-claims discount (NCD), reducing your discount from 60% to 40%. Rebuilding it could cost you around £300 over two years – double what your insurer has paid out.

Unless you’ve protected your no-claims discount, it may not be worth it. Even with protection, your underlying premium could still rise.

• Find out more: best car insurance for a no-claims bonus

When is it worth claiming?

While there are times to hold off, there are just as many situations where claiming is the right and necessary move.

It usually makes sense to claim if:

• the repair costs are significantly higher than your excess
• the vehicle is stolen, vandalised or written off
• there’s a third party involved, especially if someone is injured
• your windscreen is cracked or broken – many insurers treat this separately, and it often won’t affect your no-claims discount (NCD).

Consider windscreen damage: if a stone causes a large crack and the repair costs between £100 and £500, a typical windscreen excess might be just £50. You’d pay that amount, and your insurer would cover the rest, without it affecting your no-claims bonus. In most cases, this won’t push up your premium either.

But not all insurers handle windscreen claims the same way, so always check your policy to be sure.

And remember: whatever you decide, you must report the incident to your insurer. Failing to do so could breach your policy and leave you unprotected if someone later decides to make a claim.

• Find out more: For help navigating the claims process, see our guide to making a car insurance claim

Other ways to keep car insurance costs down

Here are a few simple ways you can reduce the cost of car insurance:

• Go annual Paying for a whole year in one go instead of monthly could save you hundreds of pounds.
• Renew early You'll often get a cheaper price if you renew your cover a few weeks (rather than a few days) in advance of the policy's end date.
• Keep mileage down Try to limit the miles you clock up over the year to avoid being hit with a higher premium.
• Tweak your job title Your occupation can also impact your premium. One trick to get around this – without lying – is to try to tweak your job title. For example, instead of 'barber', try saying 'hairdresser' or 'hair stylist'.
• Haggle If you don't want to switch to another insurer, you might be able to get the price down by haggling.