An individual’s car is an important investment in their life. You must also insure your car to comply with the legal requirements. A car insurance plan will provide financial support in the event that your vehicle is damaged. A claim is the process of notifying an insurer to receive compensation for vehicle damage. How many claims can a car insurance policy allow? Let’s see what this article has to say.
What are the Claims in Car Insurance?
There are generally no limits on how many claims you can make under your car insurance policy within a single year. The car insurance claim can have an impact on the NCB (No Claim bonus). Recurrent claims within a single year can also lead to an increase in the premium for renewal.
If you choose to have Zero Depreciation coverage for your car insurance plan, you may face restrictions regarding the number of claims that you can make each year. This cover allows you to make a variety of claims.
Are There Too Many Car Insurance Claims?
This question is not easy to answer. It all depends on what type of claim you are making and how much damage the vehicle has sustained. It is best to not file a claim if there are only minor damages, such as a scratch on the mirror or a dent in the bumper. Only file a claim against your car insurance if you are able to prove that the damage is severe.
What happens if multiple car insurance claims are made?
There are no limit on how many claims you can file against motor insurance. However, it is important to be careful when filing a claim. These are some reasons you should not file multiple claims within a single year.
- No Claim bonus: NCC or No Claim Bonus refers to the discount you receive on your premium if you have not claimed during the policy period. With each consecutive year of no claims, the percentage of discount increases. If you have not filed any claims in 5 years, the discount could be as high as 50%. If you file a claim, your NCB benefits will be lost. If the repair cost is greater than the NCB discount, you can only file a claim for car insurance.
- Premium Increase: In the event that you have multiple claims against your car insurance, the insurer might raise the premium when you renew your policy. Multiple claims can indicate that you are a greater risk to the insurance company and the insurer may increase the premium to cover this.
- No Depreciation Limit: In case you have bought Zero Depreciation coverage for your car insurance policy, the insurer won’t consider the depreciation rate in settling any claims. There may be a limit to the number of claims that you can make under this coverage in a given year.
- Deductibles If the repair cost is less than or slightly more than the deductible stated in your policy, it is better to not file a claim. The deductible component will prevent you from receiving adequate compensation even if you file a case.
Now you are aware that there is no limit on how many car insurance claims can be filed per year. However, multiple claims are allowed. Avoid filing claims for minor damages, or repairs that cost less than NCB or are equal to the deductible. Multiple claims can lead to significant problems, including the loss of NCB or an increase in insurance premium.
Last Updated : March 14, 2022 by Editorial TeamPublished : March 14, 2022