Why over half of UK drivers never claim on their car insurance

Motorists across the UK are increasingly opting to settle minor accidents out of pocket rather than claiming on their car insurance, a move driven by the desire to maintain their no-claims discount and avoid premium hikes.

Data from Quotezone.co.uk reveals that 53% of drivers have never made a car insurance claim. This trend is attributed to concerns over rising premiums and the financial burden they can impose. As a result, nearly one in four drivers surveyed admitted to paying for minor damages themselves.

Quotezone.co.uk's analysis of 100,000 car insurance policies from January 2023 to 2024 shows that UK drivers are filing fewer than one claim per year on average. Female drivers, though still making very few claims, were found to have a slightly higher average at 0.19 claims per year.

The study highlighted regional variations, with the West Midlands, London, South East England, East of England, and Yorkshire being the areas most likely to report claims. Despite this, the average claims per driver in these regions remained below one per year.

This data suggests that many UK drivers are prioritising their no-claims discounts, opting for out-of-pocket repairs to mitigate long-term costs. The low average number of claims underscores a cautious approach to managing car insurance expenses amidst rising premiums.

Quotezone.co.uk CEO and car insurance expert, Greg Wilson, said: “Drivers have always been keen to protect their no claims bonus – especially now when the average UK premium has risen to £956, so the low average claims rating is not surprising as people scramble to help keep premiums as low as possible.  

“A recent Quotezone survey showed 53% of drivers have never claimed on their car insurance, with 23% saying they had paid for smaller incidents themselves to protect their no claims discount.

“Our research of 100,000 car insurance policies discovered drivers across UK regions are making less than 1 claim per year on average. 

“If you have been in an accident, settling outside of your insurance could seem like the cheaper, more efficient way to handle things. However, incidents that appear to be minor, may be more serious than you think, settling the claim yourself may seem to be protecting your no claims discount but it could put you at greater financial risk. 

“Either way, drivers must report the incident to their insurer within 24 hours or risk invalidating their insurance – even if they don’t want to make a claim. The most important thing is to be completely transparent with your insurance provider. 

“It’s one of the biggest influences on premium price so it’s important people track their driving history, especially their no claims.  Knowing exactly what savings they’re entitled to will help them negotiate a better deal – if in any doubt they can contact their current insurer or the Motor Insurers’ Bureau to access their historical driving data.

“Normally protected discounts allow drivers to make up to two claims within a three to five year period without losing their no claims discount, but this can vary between insurers so be careful and look at the specifics when switching providers.”