Multiple Car Insurance Claims - How Many Times a Car Insurance Claim can be Filed in An Year?
Read to know the different types of impacts of raising multiple car insurance claims.
Table of Contents
A car is an important investment in everybody’s life. To drive it peacefully and safely, you need to comply with legal requirements by insuring it with a car insurance policy. In addition to adherence to the law, car insurance also gives a financial backup, in case your car is damaged. To get compensation for any damage or loss sustained by your car, you need to notify your insurance company by filing a claim. So, let’s find how many times you can raise a claim and what impacts can multiple car insurance claims can make in this article.
How Many Car Insurance Claims are Allowed in a Year?
Generally, there is no restriction on making any number of claims under the car insurance policy. However, you must keep in mind that making a car insurance claim can affect the No Claim Bonus (NCB). Also, repeated claims in a single year can also enhance the premium during the policy renewal. Also, if you have a zero depreciation cover, then there could be restrictions on raising the number of claims in a year. However, the number of claims allowed under this insurance add-on cover can vary from insurance company to insurance company.
How Many Car Insurance Claims Are Considered Excess?
There is no certain answer to this question. It actually based on the type of car insurance claim and the damage extent suffered by the car. However, it is suggested to not raise any claim for minor damages which may include a dent on the bumper or a broken mirror. Try to file a car insurance claim only if the damages are severe.
What Happens On Making Multiple Car Insurance Claims?
Although there is no specific limit attached to the number of claims that you should file in a policy year. Here are some reasons why you must avoid raising multiple car insurance claims in a policy year:
1. No Claim Bonus
No Claim Bonus is a reward in terms of a discount on the next year’s policy premium provided by the insurance company for raising no claim in a policy year. With every claim-free year, the NCB accumulates from 20% and can go up to 50% with 5 consecutive claim-free years. Raising any claim in between can make you lose on your earned NCB benefits. So, raise a car insurance claim only if your repair expense is higher than the NCB discount.
2. Increase in Premium
If you raise multiple car insurance claims in a policy year, if you file multiple claims against the car insurance, the insurance company can increase the cost of a premium during the renewal of the policy. Several claims in a year denote you as a higher liability or risk to the insurance company, therefore, the inusrance provider might increase the premium of your plan to cover you.
3. Zero Depreciation Cover
If someone has added a zero depreciation add-on cover to his or her car insurance policy, the insurance company will have to compensate the person without considering the rate of depreciation during the settlement of the claim. However, there are some limitations on the number of claims which you can raise under this zero depreciation cover in a year.
4. Deductible Amount
It is always considered better not to raise a car insurance claim if the cost of repair is lower or a little bit higher than the amount of deductible as specified in your policy document. Even if you have raised a claim, you may receive an insufficient amount of compensation due to the deductible component in your car insurance policy.
Conclusion
When you make a claim request, you do not just get compensation but also a few modifications in different components of your policy. Here are a few details mentioned in this article about the impacts of making multiple car insurance claims. Going through the points in the write-up will help you understand the effects of raising various claims so that you can make the claim request accordingly.
FAQ
1. How many times can I claim car insurance in a year?
According to experts in the industry, there are typically no limitations on the number of claims you can submit within your car insurance policy during a year. If your vehicle encounters frequent damage from accidents, you can file as many claims as needed.
2. Can a car insurance company cancel my policy for making too many claims?
Typically, your car insurance company is not allowed to terminate your policy due to numerous claims. But they do have the authority to raise your premium when it's time to renew your coverage.
Also Read:
How To Lower Premium of Your Car Insurance?
Top Factors That Determine The Premium of Your Car Insurance Plan
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.
