When does it pay off not to use insurance?

It is tempting to "handle it privately" when a minor damage occurs to the car. In some cases, it is actually the most economical choice – in others, it can become expensive, both legally and practically. Here is a concrete checklist for when it often pays to not use insurance, and when you should report the damage anyway.

1) Start with the deductible – and the real costs

The simplest rule of thumb is this: If the repair is cheaper than the deductible, it rarely makes sense to use comprehensive (or partial comprehensive) on your own car. But the economics don’t stop at the deductible.

Remember to account for:

• Deductible (varies by coverage and company)
• Bonus loss / premium increase from a comprehensive damage (typically over several years, depending on company and bonus protection)
• Time spent (assessment, garage, rental car arrangements, documentation)

Bonus rules and consequences vary, but most companies clearly describe how bonuses are affected by damage. For example, see If’s explanation of bonuses and bonus losses: If – bonus on car insurance.

2) Typical situations where it often pays to handle privately

Minor cosmetic damages

Stone chips in paint, small scratches on the bumper, parking dings without structural damage, and similar can often be repaired more cheaply than the deductible – especially if you can live with the damage or choose a simpler fix.

Glass damages where the deductible is high

Some car insurance policies have a deductible for glass, while others offer low or no deductible for repairs (not replacements). Check the terms: If you still have to pay almost everything yourself, it might just be better to handle it privately. (Terms vary between companies.)

When you are unsure if the damage is actually a "damage event"

Some damages develop gradually (e.g. rust, wear, component failure) and often fall outside the scope. Then an insurance case can result in a lot of paperwork without payment. It’s advisable to get an assessment from the garage first.

3) When you generally should not skip insurance

Damage to others (liability)

If the other party's car, property, or person is damaged, the general rule is that this is handled through liability insurance. To "settle privately" may seem tidy at the moment, but the risk is high if hidden damages, personal distress, or disagreement about fault arises later.

Personal injury, unclear sequence of events, or disagreement

Is anyone experiencing pain in their neck/back, or are you disagreeing about what happened? Then the case should be documented and reported. For serious traffic incidents and where the police are to be involved, follow the police's advice on reporting and documentation: Police – reporting theft and vandalism (also applies to other types of damage/event reports and can be relevant for damage to vehicles).

Theft, vandalism, or criminal damage

In case of theft or vandalism, you often need documentation and, in many cases, a police report to meet the company’s requirements. If you pay for it yourself without documenting, you may be worse off if more damage arises than initially assumed.

4) A practical "calculation" you can do in 2 minutes

Use this as a quick decision support:

• Price estimate from the garage: 3 (rule of thumb: ask for a rough range)
• Minus deductible: what do you pay anyway?
• Plus expected premium increase: check your bonus rules and anticipated increase (typically 2–4 years effect)

If (deductible + expected premium increase) is higher than private repair, a private settlement is often the most profitable – as long as you do not take legal risks (liability, disagreement, hidden damage).

5) Documentation: what you do now can save you trouble later

Even if you wish to handle it privately, you should always thoroughly document the incident:

• Pictures of both cars, license plates, accident location, and overview shots
• Date and time, weather/road conditions, and a brief description of the event
• Contact information of those involved and any witnesses

The Norwegian Public Roads Administration has clear advice on damage reporting and what should be filled out after an accident: Norwegian Public Roads Administration – damage report.

6) How Skademeldinger.no can help – whether you use insurance or not

Many conflicts arise not because the damage is significant, but because you have different versions of what happened. With Skademeldinger.no, you can fill out the damage report together with the other party, get a joint version of the sequence of events, and sign digitally right there and then. Afterwards, the damage report can easily be shared and is ready to be sent to the insurance company if you change your mind or if the damage turns out to be greater than expected.

7) Summary: when is it smart not to use insurance?

• Often profitable: minor damages to your own car where repair is lower than deductible + expected premium increase.
• Be cautious: if there may be hidden damages, disagreement about fault, or risk of personal injury.
• Almost always report: damage to others, theft/vandalism, and cases where documentation requirements may be crucial.

Note: Insurance terms, deductibles, and bonus rules vary between companies and can change. Always check your terms and ask the company if in doubt.