Premium up after car damage
Have you filed a claim with your insurer? Then your car insurance premium usually goes up. Unless you have a no-claim-protector. Sometimes it is more advantageous to pay damages yourself so the premium does not go up.
Calculate your premiumHigher premium due to car damage claims
Did you cause an accident through your fault? Then chances are your premium will go up. A claim on the hull insurance will cost you claim-free years, unless the damage is recovered from another party.
Your premium goes up after a claim because the insurer sees you as a greater risk. In the event of a claim, you drop down the bonus-malus ladder, lose no-claim years and receive less no-claim discount. This will increase your premium. Only for limited-scope damage, such as theft or windshield damage, your premium usually remains the same.
The premium increase usually occurs not immediately after the claim is settled, but at the next contract expiration date.
Premium increase and your claim-free years
Every time you claim a (fault) loss, you lose 5 claim-free years. This applies to all insurance companies. How much discount or increase you get on your premium depends on the bonus-malus ladder of your insurance company.
Own risk in case of damage
You often have to pay part of the damage yourself. This depends on your deductible. Usually the deductible is between €135 and €250.
Damage without consequences on your premium and claim-free years
Is someone else liable for your damage and is it covered by his or her insurance? Then you retain your claim-free years.
Also, there are certain damages caused by outside things that do not affect your claim-free years.
Damage caused by outside things
Windscreen damage (e.g., stone chips)
Fire damage
These claims do not affect your claim-free years and do not increase your premium. Your bonus-malus step remains the same and you simply keep your accumulated discount.
Damage affecting your premium and claim-free years
If you have damage that you cannot recover from someone else, you should report the damage to your own auto insurance company. Non-recoverable damage means the other party is not liable or is not known.
A claim that is only claimable on the WA+Casco (All-risk) coverage may well cause you to have to surrender claim-free years.
Car damage due to vandalism can be claimed on the WA+Casco (All-risk) car insurance policy but will affect your claim-free years.
Self-inflicted damage
With WA+Limited-Casco insurance, damage you cause yourself can affect your claim-free years and premium. With WA+Casco (All-risk) insurance, you are also insured for damage you cause yourself, such as collision or parking damage.
If you claim this damage, it is considered fault damage. As a result, you go down the bonus-malus ladder, often lose 5 claim-free years, and your premium goes up when you renew or switch.
No-claims protection: avoid premium hikes
Additional insurance exists to prevent the premium from going up after a claim. With no-claims protection, your premium remains the same even if you make one claim each year. However, car insurance with no-claims protection is more expensive.
You do lose a number of claim-free years per claim filed, even if you have car insurance with no-claims protection.
Compare car insurance policies for lowest premium
You may find that after a claim with one insurer you get much less discount while with another insurer you notice almost no difference in your discount on your auto insurance.
It smart to compare auto insurance policies and switch to another insurer if you have claimed damages and the premium increases.
From this point on, your premium increase goes into effect
A premium increase does not take effect immediately after the claim is settled. It has to do with the date your car insurance started. If your car insurance starts on Aug. 1, you will receive the new policy and a new green card every year around this date.
Your car insurance company also determines each year on that date whether or not you get an extra claim-free year. Suppose you have an accident on September 1 of the same year that you are at fault for, then the premium increase will not be implemented until the following year on August 1.
Damage just before new insurance year
A few days before the start of the new insurance year, do you have an accident that is not your fault? Then the insurer will process the claim. This may take some time.
Because you have claimed damage that has not yet been settled, the insurer may choose to reduce your claim-free years, causing you to pay more premium. The investigation may reveal that your auto insurer will still have to pay you for the claim.
To prevent you from possibly having to pay additional premium, the insurer increases your premium as a precaution.
If it later turns out that you paid too much premium, you will get back the money you overpaid over the entire period.
Paying damages yourself may be more advantageous
For small damages, it may be smarter to pay them yourself rather than claim the damage. This is because every claim you file costs you 5 claim-free years. Losing your claim-free years increases your monthly premium.
How much this is depends on your accumulated claim-free years and the bonus-malus ladder that varies by company.
Calculation example
Suppose you pay €1,000 each year for your insurance with no discount. Because of your claim-free years, you get 60% discount and pay only €400. If you then claim a €500 damage, your discount drops to 40% and your premium goes up to €600 per year. That's €200 more premium in the first year.
The next year you get another 45% discount, but this is less than the 70% you would have gotten if you had not claimed any damage. The premium this year is €550. If you had not claimed damage, the discount would have been 70% and you would have paid €300 premium. Also the second year you will pay €250 extra premium because of the claim. In this case, it would have been better not to claim the damage.
With negative claim-free years, your premium goes up
When you file a claim with your auto insurance company, you lose claim-free years. Drivers who have few or no claim-free years can have negative claim-free years after just one claim. This is also known as malus. With a malus registration, you no longer get a discount on your premium, but instead have to pay extra.
A claim costs you claim-free years. If you are just starting out or driving almost claim-free, one claim can already result in a negative number of claim-free years, also known as a malus. If you have a malus registration, you will no longer receive a discount on your premium. Your premium will even be higher.
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Frequently asked questions about a premium increase after a claim
When does your premium go up after a claim?
Your premium usually does not increase immediately after claiming damage, but only at the next renewal date of your insurance. This moment depends on the effective date of your policy. Until then, your premium remains unchanged, even if the claim has already been settled.
Why doesn't your premium increase until the contract expiration date?
Insurers are usually allowed to adjust the premium only on the annual renewal date of your policy. This is legally stipulated to provide stability and clarity for the insured. Until that date, the policy conditions and premium remain the same, even after a claim. The insurer reassesses your risk profile at renewal, and only then adjusts your premium.
How many claim-free years do you lose after a claim?
After claiming an at-fault injury, you lose 5 claim-free years by default. This applies to almost all insurers. As a result, you drop down the no-claim discount ladder, which leads to a higher premium.
How does a claim affect your bonus-malus ladder?
A claim causes you to drop down the bonus-malus ladder. The lower you get on this ladder, the less discount you get on your premium or even have to pay a surcharge. This system largely determines your final premium.
Can you claim damage without increasing your premium?
Yes, in case of damage from external causes such as theft, windshield damage or storm, your premium often remains the same. Even if the damage is recovered from another party, you will retain your claim-free years and your premium will not change.
Is it smart to pay for minor car damages yourself?
Yes, in many cases it is more advantageous to pay for small damages yourself. After all, a claim will cost you 5 damage-free years, which can lead to hundreds of euros in extra premium in the years that follow. So first calculate what it will really cost you.
When does it pay to switch insurers after damage?
After a claim, your current insurer may reduce your discount substantially. Other insurers may apply a more lenient no-claims bonus scheme. So comparing pays off, especially if switching leads to a lower premium despite the loss of claim-free years.
Related pages about car damage
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