Car Insurance After Making a Claim UK 2026

Last reviewed: 26 April 2026

How the NCD step-back works after a fault claim

The no-claims discount is calculated in years. Each claim-free policy year adds one NCD year. At five or more years, most UK insurers apply their maximum NCD discount, typically 65 to 75 percent off the base premium. After a fault claim, the NCD steps back under the insurer's step-back table.

The standard NCD step-back for a single fault claim is two years. A policyholder with five years NCD (70 percent discount) steps back to three years NCD at the next renewal. A policyholder with three years steps back to one year. A policyholder with one year steps back to zero, the maximum two-year step-back cannot reduce NCD below zero, but the practical effect is a significant premium increase.

Where NCD protection was purchased before the claim, the step-back does not reduce the NCD percentage, the protection preserves the years accumulated. However, NCD protection does not prevent the base premium from being increased at renewal to reflect the elevated risk evidenced by the claim. The NCD protection preserves the discount percentage applied to a higher base premium.

After the fault claim, the NCD accumulates again from the post-claim lower base. A policyholder who steps from five to three years NCD returns to five years NCD after two further clean years, the NCD rebuilds at the standard one-year-per-clean-year rate.

Premium loading at the next renewal

The renewal premium after a fault claim has two components: the NCD step-back reduction (the discount percentage falls from, say, 70 percent to 50 percent) and an independent base premium loading applied by the insurer to reflect the elevated risk the claim signals.

The base premium loading is separate from the NCD step-back. The insurer's actuarial model indicates that a policyholder who has made a fault claim has a statistically higher probability of making a further claim, and this elevated probability is priced into the base premium regardless of the NCD position.

ABI 2025 data indicates that the average premium increase at the first renewal following a fault claim varies between 20 and 60 percent above the pre-claim equivalent premium, depending on the severity of the claim, the policyholder's residual NCD, and the insurer's rating model. For a severe fault claim (injury and total loss, for example), loadings at the higher end of this range are common.

The CUE database: how all UK insurers see your claim history

The Claims and Underwriting Exchange (CUE) is a central database operated by the Motor Insurance Anti-Fraud and Theft Register (MIAFTR), accessible to all FCA-authorised UK motor insurers. CUE records all motor insurance claims notified to UK insurers, including not-at-fault claims, claims that were withdrawn, and claims where no payment was made.

When you apply for motor insurance with any FCA-authorised insurer, whether at renewal with the same insurer or when switching, the new insurer queries CUE as part of the underwriting process. Your claims history, as recorded on CUE, is visible to every UK insurer you approach, not just your current insurer.

The CUE record for a fault claim persists for the industry-standard five-year claim history window. For the full five years following the claim date, every motor insurance quotation you receive from any UK insurer will incorporate the CUE flag. This means the premium loading applies not just at the first renewal but at every subsequent renewal or new policy application until the claim drops outside the five-year window.

The five-year claim disclosure window: switching insurer after a claim

When you switch motor insurer, the new insurer asks whether you have had any claims in the last three or five years (the specific period varies by insurer). This question must be answered accurately under the Consumer Insurance (Disclosure and Representations) Act 2012, failing to declare a claim in the specified window is a material non-disclosure.

The implication: switching insurer after a fault claim does not reset the premium loading. The new insurer queries CUE (which records the claim regardless), receives the claim history in your application, and prices accordingly. Attempting to obtain a lower premium by not declaring a claim when switching is insurance fraud under the Fraud Act 2006 and voids the policy.

Different insurers weight claim history differently in their actuarial models. Some apply heavier loadings on recent fault claims; others are more accommodating of a single claim in a long clean history. Running a full market comparison at renewal, rather than accepting the incumbent renewal, typically identifies meaningful price differences for post-claim profiles. A BIBA-registered specialist broker (biba.org.uk/find-insurance/) can compare across underwriters with different claim-history rating approaches.

Non-fault claims and their premium impact

A confirmed non-fault claim, where the at-fault insurer accepts full liability and your NCD is preserved, does not reduce the NCD. However, some insurers apply a non-fault claim notation to the policy record that may influence renewal underwriting even without an NCD reduction. Under FCA ICOBS, any loading applied as a result of a non-fault claim must be actuarially justified.

The CUE database records both fault and non-fault claims. When applying for a new policy, the non-fault claim notation on CUE is visible to the new insurer. Some underwriters apply a premium influence on the basis of non-fault claim history, reflecting that any claim increases the statistical probability of future claims, regardless of fault.

Key Figures

Frequently Asked Questions

How much will my premium increase after a fault claim?

The premium increase at the first renewal after a fault claim combines the NCD step-back effect (loss of two NCD years, reducing the discount) and an independent base premium loading. ABI 2025 data indicates average increases of 20 to 60 percent above the pre-claim equivalent, with severe claims at the upper end of this range.

How long does a claim affect my insurance premium?

A fault claim is visible on the CUE database and must be declared to insurers for five years from the claim date. Throughout this five-year window, every insurer you approach will incorporate the claim in their pricing. The loading declines as the claim ages and as the NCD rebuilds.

Does the claim affect my insurance if I switch insurer?

Yes. Switching insurer does not reset your claim history. The new insurer queries CUE and receives the claim history. The claim must also be declared on any application for the five-year disclosure period. The premium loading applies regardless of which insurer you use.

Does a non-fault claim increase my premium?

A confirmed non-fault claim preserves the NCD, but some insurers apply a premium influence based on the non-fault claim notation on CUE, reflecting the statistical increase in future claim probability associated with any claim regardless of fault. Under FCA ICOBS, such a loading must be actuarially justified.

Can I rebuild my NCD quickly after a fault claim?

Yes. The NCD rebuilds at one year per clean policy year from the post-claim lower base. A step from five years to three years NCD returns to five years NCD after two further claim-free years. During the rebuild period, the base premium loading also typically declines as the claim ages.

Sources & Verification

• ABI Motor Insurance data: https://www.abi.org.uk
• Motor Insurers' Bureau, CUE: https://www.mib.org.uk
• Consumer Insurance (Disclosure and Representations) Act 2012: https://www.legislation.gov.uk/ukpga/2012/6
• FCA ICOBS, claims and renewals: https://www.fca.org.uk
• Road Traffic Act 1988: https://www.legislation.gov.uk/ukpga/1988/52
• HMRC Insurance Premium Tax: https://www.gov.uk/guidance/insurance-premium-tax
• BIBA, Find a specialist broker: https://www.biba.org.uk/find-insurance/

This article is for informational purposes only and does not constitute financial advice. Always verify rates with official sources before making any financial decision.