Car insurance claim costs jump 42% in five years

Nation Cymru staff

The average cost of a car insurance claim has increased by 42% in the last 5 years, new data reveals.

That’s according to new data from the experts at Confused.com car insurance, which found that claims costs increased by an average of £1,622 more per claim.

As a result, car insurance claims are leaving half (50%) of claimants out of pocket. And on top of their excess, which averages £318, those hit by extra costs lost £1,228 on average.

That’s as the average claim rose from £3,842 in 2020 to £5,464 in 2025. As claims costs are fluctuating, it’s important for drivers to check exactly what their policy covers, so a claim doesn’t leave them facing unexpected charges.

Despite rising costs, recorded claims volumes have decreased by 59% between 2020 and 2025, from 889,715 claims down to 368,861. While fewer claims are being recorded, each one is costing considerably more.

The new data from Confused.com has revealed which UK regions have seen the most car insurance claims by volume. These are across accidents, theft, windscreen and glass damage, vandalism, as well as storm, flood and fire damage.

According to the data, accidents are the main cause of claims, making up 86% of all claims. Between 2020 and 2025, there have been 4,241,472 accident claims recorded, with an average claim value of £4,455.

Meanwhile, malicious damage has had the biggest percentage increase, up 105% from £2,439 to £4,990 per claim. This is made up of 145,432 recorded claims between 2020 and 2025.

Across nearly 5 million claims made between 2020 and 2025, the data found that about £23 billion was spent across these claims collectively.

That’s why some drivers avoid claiming altogether. Further research by Confused.com car insurance found that over 4 in 10 drivers (44%) have had an accident, damage or theft without claiming. While more than a third of claimants (34%) have had other damage to their car without making an insurance claim.

Among drivers who didn’t claim after their most recent incident, the main reasons were that the damage wasn’t severe enough (52%), it cost less than the excess (45%), and that they didn’t want to lose their no-claims discount (27%).

The research revealed that those aged 65 and over are less likely to claim on their insurance with just over 1 in 10 (11%) doing so.

However, not claiming could still set drivers back financially. Of those who didn’t claim, almost half (49%) paid for their own repairs which came to an average of £458. Yet, it’s important that even non-claims are alerted to insurers if required.

Claims are often the result of incidents that are beyond driver’s control. For those who did claim, non-fault accidents (49%) were the top reasons motorists filed a claim. That’s followed by at-fault accidents (34%) and glass or windscreen damage (27%) being the next most common claims within the last five years.

With nearly 8 in 10 (78%) claimants’ latest claims being fully paid or resolved through repairs, many drivers’ issues are resolved in the end. However, for some, their experience wasn’t always smooth.

Almost two thirds (64%) admit to hitting at least one problem along the way in their latest claim. Drivers have confessed that repeating information (21%), repair delays (20%), and a lack of updates (18%) are the most common problems they faced in their claims process.

The most common problems relate to communication and waiting rather than a claim being refused. And for 36%, they experienced no problems at all, having a seamless experience.

Meanwhile for 34% of claimants, it took over 4 weeks to complete their claim. And 1 in 10 (10%) of these had to wait over 3 months.

The claiming process itself isn’t the only issue that drivers have faced. The additional extras that come with claims are setting drivers back financially. Besides excess, alternative transport (14%) including trains, buses, or taxis, is the main cost motorists have had to cover and not been fully reimbursed for.

Meanwhile, the gap between insurer valuation and replacement cost (11%), replacement car costs (11%), and independent valuation or engineer’s report fees (11%) are also factors that are financially straining those who have made a claim.

It’s crucial for motorists to understand what is covered in their insurance, so they don’t end up being caught off guard by unexpected costs and can opt for a policy that’s right for them.

Matt Crole-Rees, motoring expert at Confused.com commented: “Making a car insurance claim can be a daunting process for many drivers, but it’s important for drivers to understand what steps they can take before deciding whether to claim and what they need to do:

• Tell your insurer about every incident – You should aim to do this within 24 hours if possible, even for minor bumps and scrapes, and even if you don’t plan to claim. That’s because most insurers require incidents to be reported promptly.
• Have your details ready -For this you’ll need your policy number, both vehicles’ registrations, the date, time and location, the other driver’s details and any witnesses’ details, if applicable, photos of the damage, and a crime reference number if the police were involved. This will help your insurer understand exactly what happened and the course of action to take.
• Check your cover and excess – Only comprehensive cover pays for damages to your own car. And if the repair costs less than your excess, paying yourself could protect your no-claims bonus and future insurance price. So it’s worth checking the type of cover you have and the excess before deciding whether to claim.
• Know what to expect – Simple claims can settle in a few weeks, but disputes or injuries can take months. It’s worth being aware of this beforehand to decide whether claiming is the best option for you.

“Our guide on how to make a claim on your car insurance can help drivers understand the process and be prepared if an incident occurs.”