Accident Claim Lawyers
InsuranceUpdated September 2026

Insurance premiums

In plain English: a premium is the price you pay an insurer for your policy, usually monthly or yearly. Insurers set it based on how likely they think you are to claim and how much those claims might cost.

Why premiums change after an accident

An accident tells your insurer something about risk, at least in its view. If you were at fault, most insurers will raise your premium at renewal, and the increase can last for several years. Even when you weren't at fault, some insurers treat any claim as a sign of higher risk. How much this happens depends on the insurer and on local rules.

  • US: several states restrict insurers from raising rates for accidents you didn't cause. Others give insurers more room. Your state insurance department can tell you the rules.
  • UK: your no-claims discount is the main lever. A fault claim usually reduces it unless you have protected no-claims. A non-fault claim shouldn't affect it once your insurer recovers its costs, but you'll still have to declare the accident when getting quotes.
  • Canada: provinces regulate how fault is assigned and how it affects rates. In Ontario, fault is assigned using set rules, and a not-at-fault accident shouldn't raise your rate.

Should you claim or pay yourself?

For small property damage when you were at fault, paying out of pocket can sometimes cost less than the premium rise. But you usually still have to tell your insurer about the accident, whether or not you claim, because another driver may claim against you. Failing to report it can breach your policy conditions.

Injury claims are different. Don't let worries about your premium stop you from claiming for an injury someone else caused. Your claim for injuries goes against their liability insurer, not yours.

Example

A driver in the UK is hit at a junction by someone who ran a red light. She claims through the other driver's insurer. Her own insurer records the accident as non-fault, her no-claims discount stays intact, and her renewal quote is roughly the same as before.

Keeping premiums down after a claim

  1. Make sure the accident is recorded correctly as fault or non-fault. Ask for written confirmation.
  2. If fault is wrongly assigned, dispute it with evidence: photos, witness details, dashcam footage.
  3. Shop around at renewal. Insurers weigh accidents differently.
  4. Consider a higher deductible or excess if you can afford it.
Be honest on applications

Leaving out an accident when buying a new policy can give the insurer grounds to reduce or refuse a later claim. It's rarely worth the saving.

Next: deductibles and excess · fault vs no-fault insurance · insurance topics.

Related terms

Bodily Injury Liability CoverageBodily injury liability coverage is the part of a car insurance policy that pays for injuries the policyholder causes to other people.ClaimA claim is a formal request for payment.Claim NumberA claim number is the reference an insurance company gives your claim when it's opened.Collision CoverageCollision coverage is the part of a car insurance policy that pays to repair or replace your own vehicle after it hits another vehicle or an object, or rolls over, whoever caused the crash.

General information, not legal or medical advice. Rules differ between US states, the UK and Canadian provinces, so check the law where your accident happened. How we write and check · Legal disclaimer