Can Not At Fault Claims Impact Insurance Premiums?

Review your excess levels to find the right balance between lower premiums and manageable out-of-pocket costs if you need to claim. Dropping two rating levels typically increases your annual premium by $300 to $600 for the next few years, making the claim financially worse than paying the full repair cost. If your excess is $700 and the damage costs $900, you only recover $200 from claiming. This add-on lets you make one at-fault claim per year without losing rating levels, though your base premium may still increase at renewal. A single at-fault claim can cost you more in increased premiums over the following years than the actual repair amount you claimed.
If you decide to pay for this protection, read the small print in the policy. Some insurance companies offer no claim bonus protection. Even if you’re not at fault, insurers may increase your premium after you make a claim. This means the cost of your insurance will go up.
A not at fault claim may or may not affect your no claims bonus (NCB). According to the Insurance Council of Australia, premiums can rise anywhere between 10% to 30% depending on the insurer, claim type, and policy history. If your insurer deems you a higher risk, they may charge a higher premium on renewal. To avoid confusion, check with your insurer whether a not at fault claim will affect your premium.
Understanding what is a no claim bonus and how quickly it disappears helps you decide whether small claims are worth filing or if you should pay out of pocket to preserve your discount. If you understand what is a no claim bonus and how it builds, you can plan your insurance strategy more effectively. When you build up a strong no claim bonus rating, you offset higher-risk factors that might otherwise increase your premium.
I have my renewal for my vehicle from NRMA, due at the end of the month. Sometimes It’s close to cheapest, and easier to deal with than some of the others. If they are removing a marketing/fake discounts of “no claim bonus”, then they might as well adjust premiums to suit. I already renewed for the car this year but will have to conduct more rigorous analysis across all policies next time to compare options.
Each time my renewal has come around, NRMA has been cheapest quote with (and sometimes without) loyalty bonus, that’s why I use them. There are plenty of insurers in Australia, so put aside some time to compare the cost and understand what is (and is not) covered by different policies. If protecting your no claim bonus means you’re paying more for car insurance than you would with a provider that doesn’t offer this discount at all, then it might be time to make a switch.
Join thousands of Australians and get tools, tips and calculators to help with your money – straight to your inbox each month. Don’t stay with your current insurer just for your no claim bonus or rating level. The cost of the protection might be higher than your no claims bonus discount.
Wondering whether not at fault claims affect premiums in Melbourne? If the at-fault driver is insured and they accept liability, their insurer should cover the repair costs, meaning your insurer won’t need to get involved. Multiple insurers have been caught out in the past few years making mistakes in this process, resulting in fines and paying back customers. Saying you’ve seen a 0.02% decrease is pointless if you’re still paying +50% compared to other insurance companies… You need to compare the policy to everything else out there…saying you’ve seen a 0.02% decrease is pointless if you’re still paying +50% compared to other insurance companies… Well, renewal time has come around and I was expecting to see a nasty surprise after the above thread, and given the 20% premium hike in 2024 from the previous year. My premium on the old system with 65% NCB was $500 dearer than the one quoted on the new system without the NCB but still taking into account the fact that I had no at-fault claims in the last X years.
The no claim bonus and the way insurers apply it can differ. For example, ‘Rating 1’ drivers haven’t made a claim for the last five years (this is usually the maximum number). Generally, ratings start at 6 and reduce by one for each year you don’t claim. The discount increases each year if you don’t claim, up to a maximum number of years. A no claim bonus (also called a no claims discount, safe driver reward, no deposit bonus Australia 2026 claim bonus rating scheme, or rating level) typically gives you a discount on your car insurance. For a fairer comparison, you might want to factor this into the prices when you’re comparing car insurance quotes.