Do premiums go up after making an vehicle insurance claim?

Question

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?

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.