What Happens to Your Car Insurance After an Accident?

What Happens to Your Car Insurance After an Accident?

Being involved in a car accident is stressful enough without worrying about your insurance. But what actually happens to your policy, your premiums and your no claims bonus once a claim is made? This guide walks you through everything you need to know, from how fault is decided to what you can do to keep costs down after an accident.

What Is the Difference Between a Fault and Non-Fault Claim?

A fault claim is one where your insurer pays out and cannot recover the full costs from another party. A non-fault claim is one where your insurer recovers all costs from whoever was responsible. This distinction is important because it directly affects your no claims bonus and your future premiums.

It is worth knowing that the word "fault" here does not always mean you caused the accident. If another driver hits you but drives off without leaving their details, your insurer has nobody to recover costs from. That means the claim is recorded as a fault claim on your record, even though you did nothing wrong.

If you are unsure about the difference between cover levels and how they affect what you can claim for, our guide to third party vs fully comprehensive insurance explains everything in plain English.

How Much Does Car Insurance Go Up After an Accident?

There is no single figure for how much your car insurance goes up after an accident. The increase depends on several factors, including whether the claim was your fault, how much the insurer paid out, the severity of any injuries, your overall driving history and your insurer's own risk model. A fault claim can lead to a significant premium increase, but the exact amount will vary from driver to driver and insurer to insurer.

Non-fault claims can also nudge your premium up, although the impact is usually much smaller. Insurers look at statistical patterns and find that drivers who have been involved in any kind of accident are more likely to be involved in another one in the future, even if they were not to blame. That said, a single non-fault claim is unlikely to have a dramatic effect on what you pay.

The size of the claim matters too. A minor bump with a small repair bill will have less impact on your next renewal than a serious collision involving injury payouts. According to the ABI, UK motor insurers paid out £11.9 billion in claims during 2025 across 2.5 million claims, with vehicle repairs accounting for 63% of that total. Repair costs have been rising steadily because modern cars are packed with sensors, cameras and electronics that are expensive to fix or replace.

ABI - Motor Insurance Claims Data, Feb 2026

To understand what the average UK driver is currently paying and how that has changed, take a look at our guide to car insurance costs in 2026.

What Happens to Your No Claims Bonus After an Accident?

Your no claims bonus (NCB) is a discount you earn for every year you drive without making a fault claim. It is one of the most valuable tools for keeping your car insurance affordable. According to the ABI, a five-year no claims bonus can reduce your premium by up to 60%.

ABI - No Claims Bonuses and Discounts

If you make a fault claim, you will typically lose some or all of your no claims bonus. How much you lose depends on your insurer and the number of years you have built up. Some insurers reduce your bonus by two years per fault claim, while others may reset it entirely.

ABI - No Claims Bonuses and Discounts

If you make a non-fault claim, your no claims bonus should not be permanently affected, provided your insurer is able to recover all costs from the other party. However, your NCB may be temporarily reduced while the claim is being investigated. Once liability is confirmed and costs are recovered, your full bonus should be restored.

Is It Worth Protecting Your No Claims Bonus?

No claims bonus protection is an optional add-on that usually costs between £20 and £60 per year. It allows you to make one or two claims within a set period, typically three to five years, without losing the discount you have built up. Most insurers only offer protection once you have at least four years of no claims.

ABI - No Claims Bonuses and Discounts

There is one important thing to understand: NCB protection only preserves your discount percentage. It does not freeze your overall premium. After a fault claim, your base premium may still increase because insurers see you as a higher risk. But the discount is still applied on top of that new base price, so the increase is less severe than it would be without protection.

For a full breakdown of whether NCB protection makes financial sense for your situation, read our guide on no claims bonus protection.

How Long Does a Claim Affect Your Car Insurance?

Most car insurance claims stay on your record for five years. During that time, the claim can affect the price you are quoted when you renew or switch insurer. Most insurers ask you to declare any claims from the past five years when you apply for a new policy, although some may ask about a three-year window.

The good news is that the impact of a claim tends to fade over time. A claim from four years ago will usually have less effect on your premium than one from last year, assuming you have not been involved in any further incidents. Keeping a clean record after an accident is the single most effective way to bring your premiums back down.

What Is the CUE Database and Why Does It Matter?

The Claims and Underwriting Exchange (CUE) is a central database run by the Motor Insurers' Bureau (MIB) where UK insurers record details of incidents reported to them. It holds around 34 million records covering motor, home, travel and personal injury insurance. Every incident you report to your insurer is logged on CUE, whether or not it resulted in a claim.

Motor Insurers' Bureau (MIB) - CUE

When you apply for car insurance or make a claim, your insurer can check your history on CUE. This means they can see any previous claims, reported incidents and how much was paid out. If the information you provide when getting a quote does not match what is on CUE, your insurer may increase your premium, reject your application or even invalidate your policy.

CUE records are kept for six years from the date a claim is closed. This is slightly longer than the five years most insurers ask about, so there can be occasions where an older incident is still visible on the database even if you are no longer required to declare it. For a full list of the key terms you will come across when dealing with insurers, our car insurance glossary breaks everything down in simple language.

Motor Insurers' Bureau (MIB) - CUE

Should You Always Claim on Your Car Insurance After an Accident?

Not always. Whether it is worth making a claim depends on the cost of the damage, your excess and the potential impact on your premiums and no claims bonus. In some cases, it can be more cost-effective to pay for repairs yourself.

For example, if the repair cost is close to or only slightly above your excess, claiming may not give you much financial benefit. You would still pay the excess, and the claim would sit on your record for five years, potentially pushing up your premiums at every renewal during that period.

Even if you decide not to claim, you must still report the accident to your insurer. Failing to do so could be treated as non-disclosure and may affect your cover. You can tell your insurer you are reporting the incident "for information only" and that you do not wish to make a claim.

What to Do After a Car Accident - Step by Step

Knowing what to do immediately after a car accident can protect your safety, your legal position and your insurance claim. Here is a step-by-step guide to follow at the scene and in the days afterwards.

1. Stop safely, turn on your hazard lights and check if anyone is injured. Call 999 if anyone needs medical help or if the road is blocked.
2. Exchange details with the other driver. You will need their name, address, phone number, vehicle registration, insurance company and policy number. Do not admit fault at the scene.
3. Gather evidence. Take photos of the damage to all vehicles, the road layout, any road markings or signs and the wider scene. Note the time, date and weather conditions. If there are witnesses, ask for their contact details.
4. Check for dash cam footage. If you have a dash cam, save the recording straight away. This can be crucial in proving who was at fault and can speed up the claims process.
5. Report the accident to your insurer as soon as possible, ideally within 24 hours. Quick reporting helps manage repair timelines and avoids complications later. Tell them all the facts, even if you are not planning to claim.
6. Get a repair estimate from an approved repairer. Your insurer may have a preferred network, and using it can speed things up and sometimes reduce your excess.
7. Keep records of everything. Save all correspondence with your insurer, repair invoices, hire car receipts and any medical reports if there were injuries. You may need these later.

How to Reduce Your Car Insurance Costs After an Accident

Even after an accident, there are practical steps you can take to bring your car insurance costs back down. None of these are quick fixes, but together they can make a real difference over the following months and years.

1. Compare quotes at renewal. Every insurer assesses risk differently, so the premium increase from your current provider may not be reflected across the whole market. Comparing car insurance via Brumble lets you see quotes from 130+ insurers in one place.
2. Consider a higher voluntary excess. Accepting a higher excess tells insurers you are less likely to make small claims, which can reduce your premium. Just make sure the amount is something you could genuinely afford to pay if you needed to claim.
3. Look at telematics insurance. A black box policy monitors your driving behaviour and rewards safe driving with lower premiums. This can be especially helpful after a claim, as it gives you a way to prove you are a careful driver.
4. Review your cover level. Make sure you are not paying for extras you do not need. That said, avoid dropping from comprehensive to third party just to save money, as comprehensive cover is often similarly priced and gives you much better protection. Our third party vs comprehensive guide explains the differences.
5. Improve your vehicle security. Fitting an approved alarm, immobiliser or tracking device can reduce your premium. Parking in a garage or on a driveway rather than on the street also helps.
6. Reduce your annual mileage. If you can honestly declare a lower mileage, do so. Fewer miles on the road means less exposure to risk, which insurers may reward with a lower premium.
7. Build your no claims bonus back up. Drive carefully and avoid claiming for minor damage. Every claim-free year rebuilds your discount and brings your premium closer to where it was before the accident.

For more practical ways to save money on your cover, our detailed guide on how to lower your car insurance premium covers a range of tips that work whether or not you have a recent claim on your record.

Frequently Asked Questions