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How Many Car Insurance Claims Can Be Filed In A Given Year?

Published On Aug 04, 2022 10:00 AM By InsuranceDekho

How Many Car Insurance Claims Can Be Filed In A Given Year?

Some consumers assume their automobile insurance policies include a restriction on how many claims they may make. This is why, in the event of an accident or other unforeseen incident, they avoid filing a claim and instead pay for the expenditures themselves. However, as a responsible auto insurance policyholder, you must be aware of the coverage perks in order to get the most out of your policy when you need it. Check out the information below to see whether a vehicle insurance coverage has any limitations on the number of claims that may be filed. You will incur a financial loss if your car is damaged or stolen. You can submit a 'claim' with your insurance carrier for payment to make up for the loss you have sustained to protect yourself against this loss.

How many Car Insurance Claims can you make?

In most cases, your automobile insurance coverage does not limit the number of claims you may file. But keep in mind that filing a claim will reduce your No Claim Bonus. It's a bonus offered by an insurance provider if you don't file a claim during a policy year, which you can forfeit if you don't. Additionally, if you file a lot of auto insurance claims, your premiums will go up. Also, keep in mind that some insurance companies, such as Zero Depreciation cover, may impose limitations on the number of claims that may be filed. 

How Many Car Insurance Claims Are Too Many?

There is no definitive answer to this issue because it is entirely dependent on the kind of claim and the degree of damage to your vehicle. However, it is recommended that you should not file a claim if the automobile has minor damage, such as a ding or a broken mirror. Only submit a claim if the damages are substantial.

What Happens If I File Multiple Auto Insurance Claims?

Read on to learn about the implications of filing a lot of auto insurance claims:

Bonus for not making a claim:

For each year that you go without filing a claim under your automobile insurance coverage, the insurance provider will give you a reduction on your rate. If you file a claim, you may forfeit this bonus. As a result, only file a claim if the repair costs are greater than the NCB amount.

Increased Premium:

If you file many automobile insurance claims, your insurance company may raise your policy's premium since you are a larger risk to the insurer.

Depreciation is not taken into account:

If you have 0% depreciation coverage, the insurance provider will not consider the depreciation rate when settling your claim. However, there may be certain limitations.

Deductibles:

If the repair cost is less than the deductible, you do not need to file a claim. This is due to the fact that you will be underpaid in this instance.

Take Away

Although there is no limit on the number of automobile insurance claims you may make throughout the policy period, you should be cautious when filing them because you may lose items if you file many claims. However, you won't have to pay out of pocket for expenditures that your insurance will cover. Car insurance protects you against financial losses that may occur as a result of an accident or theft of your vehicle. In a given year, you are allowed to file multiple claims. However, there are disadvantages to doing so. Always read the terms and conditions of your automobile insurance policy to understand how it operates.

Also read: What Are the Repercussions of Driving Without Insurance?

Learn Everything You Can About Public EV Charging In India.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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