Insurance claims · 9 min read
It depends on the numbers, you generally need to weigh your excess plus any likely premium increase and lost no claims discount against the cost of paying for the repair privately.
To help someone with minor accident damage weigh up the real cost of an insurance claim against paying privately, using illustrative figures rather than promises.
Why this decision is not always obvious
For minor damage, many drivers assume claiming on insurance is the sensible option because that is what the policy is for. In practice, claiming can cost more than paying privately once you factor in the excess, a likely increase in your premium at renewal, and the loss of any no claims discount you have built up.
There is no single right answer, it depends on the size of the repair bill, your specific policy and how insurers price your risk after a claim. The figures below are illustrative only, to show the kind of comparison worth making, not a prediction of what any individual insurer will charge you.
What to add up before deciding
- Your policy excess, which you would pay regardless of claim size.
- The likely increase in your premium at next renewal, which your insurer or a comparison site may give you an indication of.
- The value of any no claims discount you would lose or step down, worked out over however many years you intend to keep the discount.
- The actual cost of the repair if you paid for it privately, based on a written estimate.
A worked example
| Scenario | Illustrative figure |
|---|---|
| Repair cost from a private estimate | £650 |
| Policy excess | £300 |
| Illustrative premium increase over two years after a claim | £240 |
| Illustrative value of lost no claims discount over two years | £180 |
| Total illustrative cost of claiming | £720 (excess plus premium rise plus discount loss) |
| Cost of paying privately | £650 |
Reading the example
In this illustrative case, claiming works out slightly more expensive once the knock on effects are added up, which is why some drivers with minor damage choose to pay privately. Change any of the figures, particularly a larger repair bill or a lower excess, and the answer can flip the other way. The only way to know for your own situation is to get a written estimate for the repair and ask your insurer, or a comparison tool, for a realistic sense of the likely premium impact.
When claiming clearly makes sense
- The repair cost is significantly higher than your excess and any likely premium change.
- There is other damage, such as to a third party's property, that needs to be settled as part of the claim.
- You are not confident the damage is limited to what you can see, and a proper assessment is needed before repair.
- The accident was not your fault and you expect the other insurer's costs to be recovered.
When paying privately can make sense
- The repair is minor, such as a scuffed bumper or small dent, and the cost is close to or below your excess.
- You are close to a no claims milestone that would meaningfully reduce your future premiums.
- You want the work done quickly without waiting for insurer authorisation.
You should still tell your insurer
Even if you decide to pay privately, most policies require you to notify your insurer of any accident, whether or not you intend to claim. Failing to do so can cause problems later if the same damage comes up in a future claim or if the other party later makes a claim against you. Notification is not the same as claiming, but it usually is required.
Getting a proper estimate either way
Whichever route you are leaning towards, start with a proper written estimate for the repair so you are comparing real numbers rather than guesswork. A free estimate costs you nothing and gives you the actual repair figure to weigh against what your insurer or a comparison tool suggests your premium and no claims position would look like after a claim.
Questions people ask us
- Is it always cheaper to pay privately for minor damage?
- Not always, it depends on the size of the repair bill against your excess and the likely premium and no claims impact, which is why it is worth working through the actual figures.
- Do I have to tell my insurer if I pay for the repair myself?
- In most cases yes, policies typically require you to report any accident within a set period even if you do not intend to make a claim.
- Will paying privately protect my no claims discount?
- Yes, if you do not make a claim there is nothing to affect your no claims discount, though you should still check your policy's notification requirements.
- How do I find out how much my premium would rise after a claim?
- Your insurer or a comparison site can often give you an indication, though the actual figure will not be confirmed until renewal, so treat any estimate as a guide only.
Work out the real numbers first
Get a free, no-obligation estimate so you can compare the actual repair cost against claiming, before you decide either way.
Worth weighing up
- Claiming can cost more than paying privately once excess, premium rise and no claims loss are added up.
- The worked figures here are illustrative, get your own real estimate before deciding.
- Bigger repair bills or non fault accidents generally favour claiming.
- You usually still need to notify your insurer even if you pay privately.