Why Has My Motor Trade Insurance Policy Gone Up in Price When the Open Claim Wasn't My Fault?
When it's time to renew your Motor Trade insurance and you have an ongoing claim, you might be surprised to see an increase in your premium, even if the accident wasn't your fault.
Here's a common scenario: a couple of months before your renewal, you're in an accident that wasn't your fault. Your insurance company takes care of everything—recovering your car, covering repair costs, arranging a hire car, and appointing solicitors for your injury and expenses claims.
You get your car back, thinking all is settled, but then your Motor Trade renewal notice arrives, and your premium has shot up. Your broker might explain that you've lost part of your 'No Claims Discount' due to the accident.
How does a non-fault accident impact your No Claims Bonus? While many insurers consider all claims when adjusting your premium based on your No Claims Bonus, only a fault accident results in losing the bonus.
If you have a Comprehensive Motor Trade insurance policy, your insurer covers the costs of repairs, recovery, solicitors, and even a loan or courtesy car—all expenses they pay on your behalf. After settling these invoices, your insurer works to recover these costs from the other driver's insurance. This process, however, can be time-consuming, especially if the other party disputes or denies responsibility, requiring evidence collection, discussions, and possibly court proceedings.
The timing of your claim matters for your premium and No Claims Bonus. If you make a claim just after renewal or a few months into your policy, it gives your insurer more time to complete the claims process before your next renewal, potentially avoiding penalties. But if you face a loss right before renewal, insurers have limited time to settle and classify the claim as 'non-fault.'
Once all costs are recovered, many insurers treat the claim as 'non-fault' and reinstate your No Claims Bonus, often offsetting the premium increase caused by the lost Bonus.
If you have questions about a claim affecting your Motor Trade insurance, you can contact the team at 0800 1777 880