Motor insurance is something you hope to use as little as possible. But when something goes wrong, your policy should be there to help – not sit untouched because you are worried about what might happen to your next premium.
New research published in July 2026 found that 35% of UK motor insurance policyholders are afraid to make a claim because they fear their prices will rise. That is higher than the European average of 31%.
It is easy to understand why drivers feel this way. The cost of running a car has been under pressure from several directions, including fuel, repairs and insurance premiums. Nobody wants to turn a cracked bumper into an even bigger bill.
But avoiding a claim altogether can create problems of its own. Here is what the latest research means for you, and what to consider when arranging your next motor insurance policy.
The figures
The research from CRIF found that more than one in three UK policyholders are worried about claiming. It also reported that:
- Around 32% of UK policyholders still feel motor insurance is expensive.
- Only 13% believe insurance costs have stabilised or started to fall.
- 39% say the combined cost of insurance and fuel is making driving unaffordable.
- More than four in ten people want insurers to do more to improve affordability and pricing consistency.
The findings come as motor insurance prices have started to rise again after a period of falling premiums. Repair costs have also increased, which can affect the price insurers charge across the market.
So the concern is not imaginary. You might be surprised, though, by how much confusion remains about what happens after an accident.
Claim or report?
One of the most important distinctions is between making a claim and reporting an incident.
A claim usually means you are asking your insurer to deal with damage or another loss under your policy. Reporting an incident means telling your insurer that something happened, even if you do not intend to claim.
Your policy may require you to report an accident, theft or damage within a particular timeframe. This can apply even if:
- You believe the accident was not your fault.
- You plan to pay for your own repairs.
- The damage appears minor.
- You have not yet decided whether to claim.
Why does this matter? If you fail to report an incident and a third party later makes a claim, your insurer may have less information to assess what happened. In some circumstances, not following the policy conditions could create difficulties with a later claim.
The Financial Ombudsman Service says that an incident reported without a claim may be recorded as “notification only”. This should not reduce your no-claims bonus because the insurer has not paid out. However, the incident may still be considered when your premium is calculated at renewal.
That distinction is not always obvious – which is why checking your policy wording or speaking to your insurer can be worthwhile.
Why avoiding claims can backfire
Suppose you reverse into a low wall and leave a scrape on your bumper. The damage looks manageable, so you decide to pay for it yourself.
That may be reasonable if the repair is comfortably below your excess and no one else is involved. But the situation changes if another person, vehicle or property is affected.
A small-looking incident can lead to:
- Damage that is more extensive than it first appeared.
- A third-party injury allegation.
- A dispute about who was responsible.
- Legal or recovery costs.
- A repair bill that grows after the vehicle is inspected.
You may also be legally responsible for damage to another person’s vehicle or property. Third-party motor insurance is designed to help with those liabilities, subject to the policy terms and limits.
Trying to settle privately can feel simpler. It can also become awkward very quickly. What starts as “I’ll send you the money for that scratch” can turn into a disagreement about the repair estimate a week later. Hollywood screenwriters may enjoy that sort of twist, but most drivers would rather avoid it.
The sensible approach is to follow your policy instructions, collect the relevant information and ask your insurer what should happen next.
No-claims bonus
A no-claims bonus rewards you for completing claim-free years. The more qualifying years you build up, the greater the potential discount may be – although the exact discount varies between insurers.
A fault claim may reduce your no-claims bonus if it is not protected. The Financial Ombudsman Service explains that insurers often “step back” a no-claims bonus by a set number of years, depending on their terms.
But a protected no-claims bonus does not necessarily protect the whole price of your policy.
For example, you might have protected five years of no-claims bonus. After an accident, you may keep those five years on your policy, but your renewal premium could still rise because:
- The insurer’s overall pricing has changed.
- Repair costs have increased.
- Your circumstances or address have changed.
- The insurer now considers you a different level of risk.
- The incident itself has been taken into account.
Protection usually means the bonus is treated differently after a claim. It does not mean every future premium is frozen.
This is one of the details worth checking before you buy a policy. A phrase that sounds reassuring can mean something narrower in practice.
When should you claim?
There is no single answer for every accident. Your excess, the cost of repairs and the circumstances of the incident all matter.
You should usually contact your insurer promptly when:
- Another vehicle, person or property is involved.
- Your car has been stolen or seriously damaged.
- Someone may make a claim against you.
- You have been injured, even if you initially feel fine.
- The repair cost could be higher than your excess.
- Your policy says the incident must be reported.
- You are unsure what to do.
If the damage is minor and entirely your own, you might decide not to claim after speaking to your insurer. But do not assume that means you can avoid reporting it.
Take photographs, note the time and location, and exchange details where appropriate. Avoid admitting liability at the roadside. A calm factual account is more useful than trying to settle the whole matter beside a roundabout while traffic queues behind you.
Read before renewal
A renewal is a useful opportunity to review more than the headline price.
Before accepting an offer, check:
The excess
This is the amount you may need to pay towards a claim. A higher voluntary excess can sometimes reduce the premium, but make sure it is affordable if you need to claim.
The cover level
Third-party, third-party fire and theft, and comprehensive cover offer different protection. Comprehensive cover does not mean every possible situation is automatically included, so read the key exclusions.
The no-claims rules
Check how many years the insurer recognises, how a claim affects the bonus and whether protected no-claims bonus is available.
The reporting requirements
Look for instructions about how quickly you must report an accident, theft or damage. These details may be easy to overlook when you are comparing prices.
The extras
Courtesy cars, windscreen cover, legal expenses, breakdown assistance and personal accident cover can vary considerably. Make sure you understand whether they are included, optional or unavailable.
For more general guidance, our article on checking the small print explains why policy details matter when you need to make a claim.
Choosing the right policy
Cost matters. But the cheapest motor insurance quote is not automatically the best value if it leaves you without the protection you expected.
At T&R Direct Insurance Services, we source UK motor insurance from an extensive panel of leading insurers. This can give you more choice when looking for cover that fits your vehicle, driving needs and budget.
Our motor insurance service includes options for different types of drivers and vehicles, including car, van, commercial vehicle, motorbike and classic car insurance. You can also explore motor excess insurance if you want to consider additional protection for the excess on a covered claim.
A broker or insurance intermediary can help you compare available options and understand important differences between policies. It is still essential to read the final documents and check that the cover suits your circumstances. Claims are handled under the terms of the policy and by the relevant insurer, so knowing who to contact and what to expect is important.
The reassuring takeaway
The latest figures show that many UK drivers are paying for motor insurance but feeling too anxious to use it. That is a sign that pricing and policy explanations need to be clearer.
A claim may affect your premium or no-claims bonus, depending on the circumstances and the policy terms. But avoiding every claim is not necessarily the answer. Failing to report an incident, trying to settle a third-party matter privately or underestimating the damage can leave you with a more difficult problem later.
When arranging or renewing your motor insurance:
- Compare more than the headline price.
- Check your excess and no-claims conditions.
- Understand whether incidents must be reported.
- Keep accurate records after an accident.
- Ask questions if anything is unclear.
- Choose cover that gives you confidence to use it when you genuinely need it.
Good insurance should not make you feel guilty for asking for help. The right policy will not remove every worry, but it can give you a clearer route forward when an ordinary day on the road takes an unexpected turn.
About The Author: Penny
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