Will a car hire accident claim affect my car no claims bonus?

How will an accident in a rented car affect my own car insurance policy? Do I need to declare it and will it impact my no claims bonus?

A question posed by one of our users was how a claim on a car hire excess insurance might affect the no claims bonus on his own car insurance policy.

The direct answer to this is it should have no impact at all on the no claims bonus. This is for the following reasons:

1. Your car insurance policy no claims bonus is in relation to your car, not you as a driver. Just as, if you had an accident in in your spouse's or partner's car, it would be their policy not yours that sees the NCB fall, if you have an accident in a hire car your own no claims bonus would not normally be reduced.

2. Car Hire Excess Insurance policies do not insure the car - they insure the policyholder against the risk of having to pay the car hire company for a sum due under the rental company's CDW policy excess, or for damage to the tyres, wheels, underbody or roof. It is a personal rather than car insurance policy.

However, any accident you have, whether in your car, a rented car or one you are borrowing, could lead to an impact on your car insurance premium. This is regardless of whether or not you have taken out a car hire excess insurance policy. That is because insurers often ask the question 'Have you had an accident or claim in the past five years' and part of their premium assessment will include your answer to this.

Some insurers might increase your premium as a result having taken into account your wider driving record, the cost of the claim and other factors, others may not.

If you think the response is unreasonable run a fresh comparison through the MoneyMaxim car insurance service as we often find that new insurers bidding for your business take a more enlightened view than an insurer who thinks you are a captive audience.

This content was last reviewed on 05/02/2024

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