How many claims can you make under a car insurance plan?

Written by Sharad Bajaj

Updated On Oct 15, 20232 min read

How many car insurance claims can you make in a year? Read this article to find out.

Cars are important possessions for all of us. They are a major purchase and we require them for our everyday commutes. Moreover, most of us are also very attached to our vehicle and its well-being. One way to protect the car is by having car insurance. This provides a layer of protection for the car in case of a mishap and the policyholder by giving him/her financial stability in such cases of crisis. To receive this compensation you have to notify the car insurance provider, this is called filing for a claim. But is there a limit to the number of claims you can make? Read this article to find out.

Is there a Limit to the Car Insurance Claims You Can Make?

In most cases, there is no limit to the number of claims that you can make within a year. However, there are several reasons why most people will resist doing so even if they meet with multiple mishaps in a year.

Why Should You Refrain From Making Multiple Claims?

The following are reasons why making multiple claims is not the best idea:

1. No Claim Bonus: Insurance companies provide policyholders with rewards for claim-free years. Moreover, this reward increases with every consecutive claim-free year, going up to 50 per cent in the 6th year. Hence, if you make a claim you will lose your NCB for that year. If the cost of repairs is lower than the NCB it is better to not file for a claim.

2. Higher Premiums: In case of multiple claims, the insurance provider is unlikely to cancel the policy but will increase the overall policy. Moreover, they choose to decline a renewal in the following year.

3. Deductibles: If the cost of the repair is only lower or only slightly higher than the deductibles mentioned in your policy document it is better not to file for a claim, as the amount you will receive will be very low and as mentioned before it will also affect the NCB and premium.

4. Zero Depreciation Cover Limit: In case you have the Zero Depreciation Cover, the claims that you make will not be subjected to the depreciation rate. However, do keep in mind that there is a limit to the number of claims you can make under this cover in a year.

Takeaway

In an overview, even though there is no limit for making claims in car insurance it makes sense to refrain from doing so. Moreover, it is also beneficial to refrain from making claims when the damage that has occurred is a minor one. As mentioned above, if the amount is low, close to the amount of the deductibles it makes no sense to look for compensation. Additionally, filing for claim when not essential will lead to the loss of the NCB and higher premiums in the following years. However, in case of serious situations never refrain from filing claims. Purchasing car insurance is now easy and online. All you need is a few minutes to compare car insurance companies, quotes, calculate premiums, check the network of cashless garages, add-ons or even renew an existing policy. To know more about car insurance you can read other articles by clicking here.

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.

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.

Written by Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.