Should I make a small car insurance claim or pay for it myself?
Compare the repair cost, less your policy deductible, against the extra premium you will pay over the several years it takes to rebuild the no-claim bonus you forfeit. For minor cosmetic damage the arithmetic usually favours paying the garage yourself; for structural damage or anything involving a third party, claim without hesitation.
Key takeaways
- No-claim bonus is a discount on the own-damage premium that resets to zero after any claim.
- The real cost of a small claim is the discount forfeited across every year it takes to climb back.
- Claim without hesitation for structural damage or where a third party is involved.
- A no-claim bonus protection add-on often costs less than the discount it protects.
What the no-claim bonus is
No-claim bonus is a discount on your own-damage premium for each consecutive claim-free year. It starts modestly and steps up over several years to a substantial share of that component. Make one claim and it resets to zero.
Why the reset is the real cost
That reset is what makes small claims a bad trade. The cost is not just this year's lost discount — it is the discount you forfeit across all the years it takes to climb back to where you were.
Work the break-even before you claim
Compare the repair cost, less your policy deductible, against the additional premium you will pay over the next several years with the bonus reset. For minor cosmetic damage the arithmetic usually favours paying the garage yourself.
When to claim regardless
For anything structural, or where a third party is involved, claim without hesitation. The bonus is a discount on a premium; the cover is the reason you bought the policy.
The add-on that removes the decision
If you would rather not do this calculation every time, a no-claim bonus protection add-on lets you make one claim in the period without losing the accumulated discount. On a well-built bonus it frequently costs less than it protects.
This guide is general information, not advice on your particular circumstances. Cover, exclusions and waiting periods are governed solely by the policy document issued by the insurer. Please read the policy wording before you buy.