Car insurance claims can linger on your record for years, and they almost always impact your price.

Whether you caused the accident or not, motor insurers use claim history to assess your risk and set your premium.

According to the Association of British Insurers (ABI), UK motor insurers paid out a record £11.7bn worth of car insurance claims during 2024, a 17% increase on the previous year.

Meanwhile, Car.co.uk states that on average, a non-fault accident on your driving history is likely to push your premium up by less than £10 per month. While this may not seem like a huge amount per month, this could cost drivers up to an additional £120 per year. This figure jumps up when the accident is indeed your fault. Therefore, understanding the long tail of insurance claims has never been more crucial.

What is the Claims and Underwriting Exchange, and how does it work?

The CUE (Claims and Underwriting Exchange) is a central database where insurers record all claims, including non-fault incidents, making your full claims history accessible to all insurance companies.

Operated by the Motor Insurers’ Bureau (MIB), the CUE database holds over 34 million motor insurance claims records. Even minor incidents that you didn’t claim for might still be noted within this database, so nothing goes amiss.

According to the MIB, entries in the CUE typically stay active for six years. This means that when you apply for new insurance, even very old claims could come back to haunt your renewal quote.

How long do car insurance claims stay on your record?

Most car insurance claims stay on your insurance record for between five and six years, depending on your insurer. This includes both fault and non-fault claims.

Typically, insurance providers require you to declare any claims made within the past five years, however, others will expect you to declare claims made within three-to-five years, according to Age Co.

ABI states that motor claims are becoming more common; insurers processed 2.4 million claims in 2024 alone, up from 2.3 million the previous year. This means that with more people claiming on motor incidents, insurers are likely to be more cautious when issuing policies, and will be more vigilant when it comes to deciding who to insure.

Do car insurance claims always increase your price?

Most car insurance claims will increase your premium, but the amount varies depending on fault, claim size, and your profile.

Recent insurance trends show the cost of settling claims is soaring. According to the ABI, the average motor claim payout rose to £4,900 in 2024, up 13% from 2023.

While it's important to consider that claims will likely lead to an increase in your insurance premium, penalty points will also have a detrimental impact on costs.

LV says: “When you have previous points or convictions, you’re seen by insurers as a potentially risky customer, which means your premiums may be slightly higher than drivers who have no marks against their name. You’ll find this with most insurers, but as long as you’re honest from the get go about your driving history, you’ll still be protected if you ever needed to claim.”

They also stress that being clear and accurate when getting your car insurance will mean a far quicker quote process overall.

Source: MoneySuperMarket https://www.moneysupermarket.com/car-insurance/penalty-points-driving-offences/

Why do insurers ask about accidents even if you didn't claim?

Insurers will tend to ask about accidents because involvement in any incident, even one where no claim was made, statistically raises the likelihood of a future claim.

Data from LV shows that simply being involved in an accident, fault or non-fault, increases a driver’s future claim likelihood compared to those who remain incident-free.

Moreover, the ABI highlights that theft-related claims are also on the rise, with average theft claims reaching £11,200 in late 2024, and insurers must cover these risks too. Thus, even non-fault incidents can quietly load your future premiums.

What happens if you don't disclose a past claim?

Failing to disclose a past claim, even a non-fault incident, can invalidate your policy and lead to refusal of future payouts.

According to the Financial Ombudsman Service, most disputes involving non-disclosure are resolved in the insurer’s favour if the omission was “reckless or deliberate”.

Typical consequences include:

How can you reduce the impact of a car insurance claim on your premium?

• Build a new no claims discount (NCD): According to car insurance quote data from MoneySuperMarket, drivers with a one year discount paid on average £1,076 a year for cover, compared to £675 with a five year discount.
• Shop around: See who is offering you the best price before committing to your old insurer.
• Advanced driving courses: Courses such as Pass Plus can help reduce the cost of your insurance.
• Install additional vehicle security: Especially important if theft claims are rising, as ABI data suggests.