The significance of a good policy, be it a third-party insurance policy or a comprehensive car plan, is known to all car owners. Whether you need to compensate a third party for damage to their property or need to repair your own car after an accident, you have to file a car insurance claim. Claims are official requests that you make to your insurer to provide you with financial compensation.
While most policyholders refrain from making multiple claims, the question is how many car insurance claims can be filed in a policy year. We will find out the answer to this question and more in the following article.
How Many Car Insurance Claims Can You File In A Year?
Owning car insurance for 1 year with no claims offers you the reward of a No Claim Bonus discount in the following year’s premium amount, whether you are an own-damage insurance policyholder or a third-party insurance policyholder.
However, the thumb rule states that there are no restrictions on how many claims you can make in a policy year. There is no claim limit that you have to adhere to if your vehicle is subject to frequent mishaps and accidents resulting in damage.
How Many Claims Make Too Many Policy Claims?
So, can we claim car insurance twice in a year? While the answer to this question is yes, you are also advised to refrain from making multiple claims in a policy year. It makes sense to file a claim if your car is involved in an accident, but it is a wise decision to limit your claims to serious and significant damages only.
Understand this – you must avoid filing a car insurance claim for every small dent or scratch that appears on your car. For example, it would be wise if you paid from your pocket for a broken mirror rather than file a claim.
Understanding How Multiple Claims Impact Your Policy
Loss of No Claim Bonus
You will lose this discount on car insurance after one year of no claims if you make multiple claims in a year. The NCB discount is strictly applicable to only those policyholders who have refrained from making any claims in an entire year, and the discount percentage increases up to 50% on 5 consecutive years of not making any claims.
Therefore, you will miss out on this opportunity to lower your premium cost if you file a claim during a policy year.
Higher Premiums
A big concern for policyholders who file claims multiple times in a year is that their insurer might consider them to be high-risk individuals. Therefore, to alleviate potential payouts in the future, insurers opt to increase the policyholder’s premium cost.
This high premium cost can pose a financial burden, so you need to weigh whether you want a potential increase in your premium at the cost of filing multiple claims or not.
Conclusion
Other factors that are impacted by multiple claims include your nil-depreciation cover (which is limited to two claims only), whether or not you pay a higher deductible, and the possibility of lower claim settlements in the future.
From all these aspects, it is clear that while you have the freedom to make multiple car insurance claims in a year, you should only choose to file a claim if it is absolutely necessary and draining you financially.