Partner had a minor accident in the car. No one was hurt – basically scraped the side of a concrete wall so there are a few small dents and ugly scratches everywhere along the front of my car.

I'm considering making a claim as the damage should be more than the $500 excess. But I've only had the car for about 3-4 years or so now and this is the first half-expensive car I've ever bought so I've never had comprehensive insurance.

So I was wondering if I make the claim, given my short history of being insured, is it likely to just increase my premium? I don't mind paying the $500 excess to get it fixed but basically, it's just cosmetic damage – car is still driveable. But if say, my insurance increases by $200-300 every year after this, I'll end up paying much more in the long run due to increase premiums, and then I'm probably not willing to fix it. I plan to drive this car for many years and by the time I sell, the scratches are not going to affect the resale value by more than a few thousand dollars in extra premiums.

Do insurance companies in Australia increase premiums after you make a claim?

1 Answer 1


They may go up.

Or they may not.

Personally, if the costs of your cosmetic fixes aren't that much more than your deductible (get quotes ahead of time), I wouldn't report it.

I had a similar case where the damage I incurred bumping a parking space divider was $600. There was no point in reporting a claim, as my deductible was $500.

  • 2
    In the UK, when renewing your insurance you have to declare all incidents that could have given rise to a claim on the policy, whether or not you actually claimed. But it may be different in Australia.
    – Mike Scott
    Commented Feb 17, 2017 at 13:28
  • @MikeScott - I missed the Australia tag. I answered based on US experience.
    – warren
    Commented Feb 17, 2017 at 15:21
  • @MikeScott What you're supposed to do and what is a smart choice are not always the same. Would you honestly tell your insurer if you got a scratch or bump on your car that you could repair cheaper than your excess+premium increase?
    – Philbo
    Commented Feb 12, 2018 at 14:50

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