Motor insurers paid out a record £11.7 billion in car insurance claims in 2024. This was a 17% increase from the previous year. This significant rise in payouts directly influences the cost of premiums for drivers. The average cost of motor insurance coverage rose by £78 in 2024, bringing the total average premium to £622. However, the average amount paid by drivers for cover in the final quarter of 2024 was 2%, or £14, lower than at the beginning of the year.
What is a car insurance claims history?
Your car insurance claims history is a record of any claims you’ve made against your policy. This includes not only accidents where you were at fault, but also incidents where you were not to blame, or even attempted theft. Insurers use this information to assess the risk you represent as a driver. A history with many claims, or claims that are complex, can lead to higher premiums. It’s important to be completely honest when declaring your claims history. Failure to do so could mean your current claim is rejected. What I tend to notice is that people often forget about minor incidents or those where they weren’t at fault. It’s always best to check your records and declare everything, even if you think it’s insignificant, as it can save you trouble later.
Why your claims history significantly impacts car insurance costs
The cost of car insurance is heavily influenced by your claims history. Insurers use this data to predict the likelihood of you making another claim in the future. For example, vehicle repairs accounted for £1.5 billion of payouts in Q1 2023 alone, a 33% increase from the previous year. This means the cost of fixing cars is a major factor driving up premiums. Average repair costs have risen by 24.7% since 2019, now standing at £5,191. This is partly due to a 35% increase in the price of common car parts between 2020 and 2024. The shortage of skilled technicians, with 23,000 vacancies in the automotive aftermarket in 2024, also contributes to higher labour costs and longer repair times.
Electric vehicles (EVs) present another complexity. They can cost up to 25% more and take 14% longer to repair than comparable petrol or diesel cars. This increased expense and time for EV repairs directly adds to the overall claims costs insurers face. The total-loss rate for damaged cars has also been high, reaching 66.5% in early 2025. This means more vehicles are being written off rather than repaired, which is a more expensive outcome for insurers. If I were in this situation, I’d want to ensure I had a clear record of all past incidents, even minor ones, and understand how they might be interpreted by a new insurer. This proactive approach can help avoid unexpected premium hikes.
The Claims and Underwriting Exchange (CUE) database holds details of incidents reported to insurers for six years from the date a claim is closed. This database is a key tool for insurers to verify your claims history. If your new insurer checks CUE and finds information you haven’t declared, it could lead to your claim being rejected. This is a serious consequence, as it means you would have to cover the costs yourself. It’s estimated that 41% of consumers under-report previous motor claims in the US, suggesting a potential issue with disclosure here too. People with undisclosed motor claims have a 34% higher average claims cost compared to those with the same number of disclosed claims. This highlights the financial risk of not being upfront.
Common mistakes when declaring your car insurance claims history
Forgetting to declare minor incidents
One common mistake is not declaring minor incidents, such as a small scratch or a bump in a car park, especially if no claim was made. Even if you didn’t formally claim, some insurers record these events. If your new insurer finds these incidents on the CUE database and you haven’t declared them, it could lead to issues. What I’d do in this scenario is to check my insurance records for any past incidents, no matter how small, and declare them. It’s better to be safe than sorry, as a small undeclared incident can cause a big problem later.
Assuming “no-claim” means no incidents
Many drivers believe that if they haven’t made a claim, they have a clean record. However, your claims history includes more than just claims made. It also includes incidents reported to insurers, even if no payout occurred. For instance, if you reported a theft but the car was recovered undamaged, this might still be recorded. If I were in this situation, I would clarify with my insurer what constitutes a “claim” for their purposes and ensure all reported incidents are accounted for.
Not understanding the CUE database
Some drivers are unaware of the CUE database and its implications. They might not realise that insurers can access this information to verify their claims history. If an insurer finds undeclared information in CUE, it can invalidate your policy. It’s crucial to understand that insurers use this database to cross-reference information. This is why transparency is so important when applying for or renewing your car insurance.
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Managing your car insurance claims history for better premiums
Understanding the CUE database and your data
The Claims and Underwriting Exchange (CUE) database is central to verifying your claims history. It stores details of incidents reported to insurers for six years from the date a claim is closed. This means that even if you haven’t made a claim in a while, past incidents can still be on record. It’s important to know what information is held about you. If your insurer accesses your claims history in CUE and finds information you haven’t declared, it could mean your claim is rejected. My first step would be to request a copy of my CUE report to see exactly what information is held about my driving history. This helps ensure I’m providing accurate details to my insurer.
Declaring all incidents accurately
Honesty is paramount when declaring your claims history. This includes all accidents, even those where you weren’t at fault, and any reported incidents. For example, 14% of consumers have both motor and home claims, suggesting a link between different types of insurance events. Individuals with three or more motor claims incur home claims losses approximately 40% higher in cost than those without any motor claims. This shows how interconnected your insurance history can be. When declaring, be precise about the date, nature of the incident, and whether a claim was made. If you’re unsure about an incident, it’s always best to err on the side of caution and declare it. This transparency helps build trust with your insurer and can prevent future complications.
The impact of undisclosed claims
Undisclosed claims can have significant financial consequences. People with undisclosed motor claims have a 34% higher average claims cost compared to those with the same number of disclosed claims. This means that trying to hide an incident can ultimately cost you more. Insurers rely on accurate information to price risk appropriately. When you don’t provide this, the insurer’s assessment is flawed, and this can lead to higher costs when a claim is eventually made or discovered. It’s also worth noting that insurers detected 84,400 fraudulent claims in 2023, valued at £1.1 billion. While this is about fraud, it highlights how seriously insurers take accuracy and honesty in claims reporting.
Using dash cams to support your claims
A dash cam can be a valuable tool in documenting incidents and supporting your claims. Devices like the Garmin Dash Cam X310 record high-quality footage, which can clearly show what happened during an accident. This footage can be crucial in proving your innocence if you’re involved in a non-fault claim, or in accurately detailing the circumstances of an incident. The recorded evidence can help to speed up the claims process and ensure that the correct outcome is reached, protecting you from false accusations and potentially lowering your future premiums by clearly establishing fault.
How to access your CUE report
You can request a copy of your CUE report from the Motor Insurers’ Bureau (MIB), which manages the database. There is usually a small fee for this service. It’s advisable to do this periodically, especially before renewing your insurance, to ensure all information is accurate. Understanding the contents of your report will help you provide correct details to your insurer. This proactive step can prevent issues down the line and ensure your premiums are based on accurate information.
Frequently Asked Questions
How long does a car insurance claim stay on my record? ▾
What happens if I don’t declare a previous claim? ▾
Does a “no-claim” discount mean I have no recorded incidents? ▾
Are electric vehicle (EV) repairs more expensive? ▾
How much do car parts cost now? ▾
Understanding and accurately managing your car insurance claims history is crucial for securing fair premiums. Always be truthful when declaring past incidents to your insurer. If you’re looking to better document your driving and potentially support future claims, consider using a dash cam.
If this was useful, you might also want to read Car Insurance Tips for Road Debris Impact Claims Explained.
Sources and Further Reading
The State of Motor Insurance in UK. RSM UK, 2024.
UK Motor Claims: Why Write-Offs Are Rising and How Drivers Can Stay Protected. Business Money, 2025.
ABI releases quarterly figures for motor insurance claims. Insurance Business Magazine, Q1 2023.
The CUE database. Aviva, 2024.
LexisNexis Risk Solutions research on claims under-reporting. LexisNexis Risk Solutions, 2022.
Record motor insurance claims reached £11.7 billion in 2024. London Daily, 2024.
Car insurance tips for road debris impact claims explained — this guide helps you understand the process and what to do if your car is damaged by road debris.
Tips for making a non-fault claim in the UK — learn how to navigate the process of making a claim when another driver is at fault.
