A car owner needs to know the implications of making repeated car insurance claims.
Policies That Limit How Many Times Car Insurance Can Be Claimed
If you have a zero-depreciation add-on cover to your policy, there may be a restriction on the number of claims under it. This add-on cover to a comprehensive car insurance policy covers the depreciation amount on part of the vehicle that is being assessed for damage.
Also, if you have Roadside Assistance Cover, which provides roadside assistance 24/7, you can make claims only for a fixed number of times during the tenure of the policy. These restrictions will vary from insurance company to company.
What Happens if Multiple Car Insurance Claims Are Made?
You can make as many claims as you want under your car insurance policy. However, it may be advisable to consider the following:
No Claim Bonus: (NCB): If you make no claims during the tenure of your car insurance policy, you will be offered a discount on the premium. This will be a considerable amount. So, if you make repeated claims, you will lose out on the NCB reward.
Higher Premiums: If you make multiple claims during a year, the car insurance company may consider you a high risk. To cover this risk, the company may hike your insurance premium during renewal.
How Many Times Can You Make a Claim under Your Car Insurance
Repeated claims under your car insurance policy can increase its premium and cause you to lose out on benefits.
It is advisable not to make claims under a car insurance policy when:
The cost of repair is less than or equal to the deductible, or the amount you have to pay before the insurance company covers the claim.
The discount offered by NCB exceeds the total repair cost. This will result in you losing your NCB.
The damages are only small dents or scratches, which may be repaired more cost-effectively by you.
The times you can consider making a claim are:
When the damages to your car are huge and considerable,
When the car has been stolen.
When the claim amount is considerable.
Car insurance companies do not have restrictions on how many times car insurance can be claimed in a year; After all, an insurance policy is to protect you against any financial losses due to an accident or even theft. However, filing several claims in a year has its drawbacks and may result in higher premiums and loss of benefits. So, think it over before filing a claim.
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