If you have caused a traffic accident in which someone else was injured this year, you will normally have to expect an increase in your car insurance premium next year. However, this can be prevented under certain circumstances.
Everyone who causes a traffic accident has the right to pay for the damage caused out of his own pocket. This will prevent a downgrading of the no-claims bonus in the motor vehicle liability insurance and thus an increase in the insurance premium. However, this only makes sense in certain cases.
The premium amount for motor vehicle liability and comprehensive insurance for a passenger car is calculated, among other things, on the basis of the no-claims bonus class (SF class). The SF class determines the no-claims bonus (SFR) granted and thus the percentage of the basic premium that results in the insurance premium to be paid. The SF class and thus the SFR are based on the number of claim-free years, i.e. the years in which no traffic accident was reported for which the motor vehicle liability or comprehensive insurance had to pay a claim.
The higher the number of claim-free years, the better the SF class and, as a rule, the less the insurance customer has to pay for their car insurance. If you have caused a motor vehicle accident with the insured vehicle, in which others were injured, the motor vehicle liability insurance pays their damage. Existing comprehensive insurance, on the other hand, covers accident damage to your own vehicle, even if you caused the accident yourself through negligence.
Why an accident increases the car premium
If a damage was taken over by the motor vehicle liability insurance or comprehensive insurance, the SF class and thus the SFR of one's own motor vehicle policy are made worse at the beginning of the next calendar year; thus the motor vehicle insurance also becomes more expensive at the beginning of the next year.
The amount of the downgrading of the SF class and thus of the SFR after an accident is regulated in the insurance conditions on which the motor vehicle policy is based and can vary depending on the motor vehicle insurer.
Even a self-inflicted motor vehicle accident can, for example, lead to a doubling of the motor vehicle insurance premium. The more accidents one causes in a calendar year, for which the motor vehicle liability or comprehensive insurance pays, the higher the downgrading of the SF class and the SFR.
Reimburse the motor insurer for minor damage ..
On the other hand, the amount of compensation paid by the motor insurer has no influence on the amount of the downgrading of SF class and SFR, i.e. it does not matter whether the motor insurer pays 500 euros or 50.000 euros paid for the accident damage. This in turn means that even minor accidents costing a few hundred euros can more than double the car insurance premium. However, there are also ways to avoid a lowering of the SF class.
The insurance customer can refund for example after the damage adjustment by the Kfz insurer the height of a damage to the insurer and prevent so a downgrading of the SF class. This is possible within six months – or longer, depending on the contract agreement – after completion of the claim settlement. Such a procedure is particularly useful in the case of minor damage, provided that the amount of damage is lower than the premium increase that would otherwise result in the next five or ten years.
For this reason, many motor insurers inform their insurance customers if the amount of damage paid per accident does not exceed 500 euros or 1.000 euros to enable them to be repaid on time. However, it is also possible to ask the car insurer within the specified period whether it pays to bear an already settled damage itself.
… or pay the claimant immediately yourself
Another way to avoid a downgrading of the SFR, especially in the case of minor damage, is not to report an accident for which the motor vehicle liability insurance would cover to the motor vehicle insurer, but to pay for the damage to the other party in the accident yourself. A traffic accident must be reported to the motor vehicle insurer within one week if it can lead to the insurer's own motor vehicle liability insurance compensating for the damage incurred.
In many motor vehicle policies, however, there is an exemption for minor damage up to a certain amount of damage specified in the underlying insurance terms and conditions, often 500 euros or 1.000 euros. If it is not possible to reach an agreement with the injured party, or if it turns out that it would be better for the motor insurer to cover the damage that may have already been paid in advance, the incident can still be reported to the insurer until the end of the year in which the accident occurred.
Depending on the contract agreement, small claims incurred in December can often still be paid up to 31 December at the latest. January of the next year to the vehicle insurer. Anyone who wants to pay a minor claim out of their own pocket to the other party to the accident without reporting the accident to the motor insurer in advance should take the precaution of asking the motor insurer about the relevant reporting deadlines.
Contractually agreed discount saver
There are also forward-looking options to ensure in advance, i.e. before an accident has occurred, that the SF class or SFR will not be lowered after a loss has occurred and that premiums will not increase as a result. In many motor insurance policies, a discount saver or discount protection clause can be agreed, in part as an option, when applying for a policy or even later, depending on the SF class and age of the driver.
Under a discount retainer clause, the car insurer waives the right to increase the insurance premium in the next calendar year due to a claim. Depending on the agreement, the SF class may then deteriorate in the next year due to a loss, but the previous SFR as the basis for calculating the premium remains at the previous level.
If, on the other hand, a discount protection clause has been agreed in the policy, neither the SF class nor the SFR will be downgraded in the event of a claim. Depending on the contractual regulations, the SF class and the SFR remain at the previous level in the next calendar year, or both are even placed in the same position as if there had been no claim, although the motor vehicle insurance company has compensated the damage.