When does it make sense not to claim on car insurance?

Claim On Car InsurancePeople sometimes ask if sometimes it makes sense not to claim on car insurance for damage and instead pay for repairs themselves. The answer is ‘yes’ and there are a few scenarios when it may be worth getting repairs done and paying out of your own pocket.

When does it make sense not to claim on car insurance?

If you have an older car and you there is minor damage –such as a snapped off wing mirror or dented bumper – then claiming on your insurance could actually cause the car to be written off.

According to the Association of British Insurers (ABI), a vehicle is a write-off if an insurance company decides the cost of repairing it is too high compared to the value of the vehicle.

The consumer watchdog Which advises drivers to pay for minor repairs themselves, or ask the other party to do so, to preserve their no-claims bonus. The amount of excess you have to pay, coupled with losing the no claims bonus often costs more than the cost of the repairs. Another reason you might consider not making a claim is that the cost of insurance renewal will increase if you have made a claim. According to Confused.com, anyone who has claimed on their insurance is deemed to be likely to claim again, so their premiums are higher because there is an increased risk that the insurance company will have to pay out.

If You Do Not Make An Insurance Claim

claim on car insuranceEven if you do not make a claim on car insurance, you should inform your insurance company if you have an accident. It is recommended to send the insurer a letter telling them what happened but clearly mark it ‘for information only’ so they don’t think you are making a claim. Most insurance policies actually make it a condition that you report any accident to them – even if you do not make a claim – and failing to do so could mean you are refused cover in the future.

CPR Liverpool Car Body Repairs

Here at CPR Liverpool car body repair specialist, we are experts at repairing Liverpool car bumper repairs or Liverpool car scratch repairs and it often costs less than the excess of your insurance. Call us today to find out how we can help you.

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