Purchasing a car is a substantial investment, and it is mandatory to insure it with a car insurance policy. A automobile insurance coverage protects you financially in the event of damage to a third party or your own vehicle. All you have to do in the event of damage is file a claim, and the insurance provider will reimburse the costs. Many car owners are hesitant to file a claim because they believe they can only file a claim once or twice every policy year. That, however, is not the case. Continue reading to learn if there are any restrictions on the number of claims that can be filed in a single policy year.
In a policy year, how many car insurance claims can I make?
In most cases, vehicle insurance providers do not set a precise restriction on the number of claims that can be filed in a given year. This implies you can file as many claims as necessary based on the harm you may have caused.
Filing too many claims might result in a premium rise as well as the loss of the NCB discount on the premium. If you insure your automobile with a zero depreciation add-on, the number of claims you can file in a year may be limited, which varies from insurer to insurer. Roadside assistance, on the other hand, comes with a fee. The number of times a claim can be filed is limited. Depending on the number of claims filed previously, the insurance company may limit the number of times you can file a claim at the time of renewal.
Is it possible to have too many car insurance claims?
There is no exact number that insurance companies use to determine how many claims are too many. The type of claim and the magnitude of the damage are taken into account. It’s better not to file a claim for minor damages because it will affect your no-claim benefit. Only file a claim if the losses are serious.
What Happens If You Make Multiple Car Insurance Claims?
While the insurance provider does not set a limit on the number of claims you can file in a particular policy year, you should be aware that making many claims might be costly. The following are some of the ways that claims can affect your coverage.
Bonus for not making a claim:
Insurance companies will give you a discount if you don’t make any claims throughout your coverage year. If you don’t file a claim for five years in a row, you can get a 50% discount. As a result, filing a claim implies foregoing NCB benefits.
Premiums that are higher:
If you submit claims frequently, insurance providers may charge you a higher premium because the risk of insuring your vehicle is higher. As a result, insurance providers will raise your rate at renewal time to compensate.
Limit on Depreciation:
The insurance provider will not factor in the rate of depreciation at the time of claim settlement if you have zero depreciation coverage. However, the number of claims you can file in a policy year may be limited.
In vehicle insurance, the deductible is the amount you must pay out of pocket before filing a claim. If the deductible is lower or slightly greater than the claim amount, it is better not to submit a claim. You will receive an inadequate claim amount due to the deductible component.
How do you know if you should file a car insurance claim or not?
A few instances in which it is preferable not to file an automobile insurance claim are listed below.
When the claim amount is less than the deductible:
If the claim amount is Rs. 5,000 and the deductible is Rs. 6,000, you should not make the claim since you would be responsible for paying Rs. 5000 out of pocket.
When the NCB is greater than the amount claimed:
When the no claim bonus discount is greater than the total repair cost, it is best not to file a claim.
Damages that are minor:
In the event of minor damages like as small dents or shattered mirrors, settle claims out of your own cash.
Consider the following possibilities when making an automobile insurance claim.
The damages are substantial, necessitating a large sum to cover the expense of repairs.
If your car is stolen, you must file a claim for the amount up to the insured declared value.
If the claim amount is greater than the vehicle’s insured declared value,
You are protected financially by a car insurance coverage. As a result, having the policy protects you from financial losses resulting from an accident or theft. While it is simple to file a claim for damages, it is vital to consider the disadvantages to avoid losing NCB benefits or having to pay a higher premium.