Multiple Car Insurance Claims: How It Affects Your Policy

We all know that car owners must insure their vehicles because it is lawfully required. We immediately think of filing an insurance claim for damages in the event of an accident, but how many of us are aware that multiple claims may be made within a single year?

Are there any limitations on making several insurance claims in a single year?

Although there is no restriction on filing multiple insurance claims within 12 months, experts advise customers to avoid doing so because it may impact their insurance policy.

Here are some reasons why you should avoid making numerous insurance claims and how they may affect your actual policy:

  • Effect On NCB (No Claim Bonus): If no claim is filed during a policy year, the insured party receives a No Claim Bonus on their premium. The concession percentage rises yearly if the insured party does not file any claims in the succeeding years. So, this concession can increase to 50% if no claims are made for five straight years. Therefore, the bonus benefits may be forfeited if a claim is made within a year. Hence, a car insurance claim process should only be filed if the cost of the repairs exceeds the NCB concession. *
  • Increase In Premiums: Filing multiple claims can lead to higher premiums as it increases your risk to the insurance provider.
  • Zero Depreciation: If you have an online car insurance policy that covers zero depreciation, the company might not consider this type of coverage when processing claims. Therefore, reviewing the policy’s restrictions is crucial before filing an insurance claim. *
  • Deductibles: It is preferable to forego filing a claim if the cost of repairs is significantly lower than the deductibles specified in the insurance policy. However, if you file a lawsuit, be prepared to receive inadequate compensation.

What To Consider When Filing An Insurance Claim:

Even though you might be annoyed by the minor dings and scratches on your car, it’s ideal to pay to have them fixed yourself rather than filing insurance claims. This is so the policy cover benefits won’t be affected by claims for such minor damages. Therefore, waiting for a subsequent claim-free year is the better course of action.

Even though it can be challenging to decide when to file an insurance claim, the following two considerations should be made:

  1. It is preferable to forego filing a claim if the cost of repairs exceeds the deductible amount specified in the policy. A deductible is the sum that the policyholder must pay before the insurance provider begins to pay. Therefore, the insurance company won’t be responsible if the repair cost exceeds the deductible.
  2. The cost should be much higher than the No Claim Bonus amount when filing a claim for minor repairs. *

Filing multiple car insurance online claims can have significant effects on your policy. It can lead to increased premiums, potential policy cancellations, and difficulty in obtaining affordable coverage in the future. Make sure you do the process of four-wheeler insurance renewal on time.

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* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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