Unfortunately, in addition to the physical and emotional damage that a car accident can cause, you may also experience higher rates in your car insurance as soon as you need to claim the accident. If you need to make a claim with your own provider, then your premium will go up. This is fairly standard with all insurance providers across the UK; however, it is important to compare the various ratings and find out exactly how much you can expect from each provider before selecting your policy.

Insurance Costs After an Accident

Car insurance providers run a business and they will offer different rates to different drivers of different risk levels. Getting into an accident and having to make a claim will cost the provider money and thus you can expect your rates to escalade in order to make up for this. In addition to an increase in your premium you may also need to pay the excess, also referred to as the deductible as determined on your policy. Again, how much your excess is will depend on the terms and conditions agreed when you purchased the policy.

In some instances, if you are in an accident, your premiums will not rise. This is the case if you do not need to make a claim to your provider. If the accident is the fault of the other driver and he has adequate cover to pay for all your damages, then you may not need to file a claim with your own provider and thus will avoid the increase in your rates.

Should I Claim?

If you are in a minor accident and the damage is not worth the hassle of rising premiums and the deductible payment, then it might be a better idea to just suck it up and pay for the minor costs out of your own pocket. If, for example, it will only cost 50 pounds to fix the broken windshield but your deductible is 100 pounds, there is really no point in making a claim. It is best to just pay the 50 pounds out of pocket and keep your insurance premiums low.

If you have been in an accident and needed to make a claim there is a good chance that you are now stuck paying much higher rates than what was agreed upon. Have another search of the various car insurance quotes offered by providers online. You may be able to find a much cheaper deal with a different provider even with an accident on your record.

The good news is that, if you do not make a claim, you can expect your premium to go down in most instances. In fact, after three to five years without a claim you can expect your car insurance premium to actually decrease by as much as 75 percent with some providers. This is referred to as the 'no claims bonus' or the 'no claims discount.' This discount only applies to the car that you have insured, not the driver which means if you buy a new vehicle, your discount will not switch over.

Car insurance premiums can be confusing. The goal for any driver is to find the lowest rates out there on a policy that is adequate for ones specific driving needs. If you are in an accident, it is not the end of the world for your insurance premiums; however, you can expect your rates to rise on the upcoming bill. Take the time to compare the various providers again and see if you can get a better rate, even after an accident.