Purchasing a car is a significant financial commitment, and it is best that you insure it with a comprehensive car insurance policy. A car insurance policy gives you financial security if you endanger another person or vehicle. You must submit a claim if there are any damages, and the insurance provider will pay for them. Many times, car owners put off filing a claim because they believe they can only file one or two claims for damages per policy year. However, that is untrue.
How Many Car Insurance Claims Am I Allowed To File In A Calendar Year?
In general, there’s no set number of claims with a motor insurance company in a calendar year. According to the damages you might cause, you are, therefore, free to submit as many claims as you need.
More claims can increase your premium and prevent you from receiving the NCB concession that is available on the premium. Depending on the insurer, there may be limitations on the number of claims you can submit annually if you insure your car with a zero-depreciation add-on cover. Roadside assistance, on the other hand, has a cap on the number of claims that can be made. *
How Many Car Insurance Claims Are Deemed Excessive?
Insurance companies don’t use any particular figure to determine how many claims are too many. The type of claim for car insurance and the degree of damage are taken into account. It is ideal to avoid filing a claim for minor damages because doing so affects the no-claim bonus. Only submit a claim if the damage is significant.
What Happens If You Submit Multiple Claims For Car Insurance?
Although the insurance provider does not cap the number of claims you can submit during a policy year, you should be aware that filing numerous claims may have the following effects on your policy:
No Claim Bonus: An insurance company will give you a concession if you have not filed a claim during the previous policy year. For five years in a row with no claims, the concession can reach 50%. Therefore, filing a claim results in a loss of NCB benefits. *
Higher Premiums: If you file claims frequently, insurance companies may charge you a higher premium because the risk of insuring your vehicle is more elevated. As a result, insurance companies will raise your premium at renewal time to cover this.*
Zero Depreciation Limit: In the case of a zero-depreciation limit, the insurance provider won’t consider the depreciation rate when settling a claim. There may be a cap on the total number of claims you can submit in a given policy year, though. *
Deductible: The amount you must pay out of pocket before filing a claim under your car insurance policy is known as the deductible. If the deductible is less than or slightly more than the claim amount, it is ideal to forego filing a claim. You will be given an inadequate claim amount because of the deductible component. *
* 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.