How Many Claims are Allowed in Car Insurance?

As a car owner getting insurance for your car should be an utmost priority. And it is said that most people turn deaf ears to issues like this. If you have the opportunity to get insurance for your car, do not hesitate to get it. How many claims are allowed in car insurance is actually one of the most frequently asked questions for new car owners? But I am glad to let you that there are no restrictions on the number of claims you make under the car insurance policy.

How Many Claims are Allowed in Car Insurance?

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How Many Claims are Allowed in Car Insurance?

Once you become a car owner getting insurance for your car should be the next step. You need to meet the legal requirements by insuring your vehicle. And apart from meeting the legal requirements, a car insurance plan will provide you with financial backup if your car is damaged.

To state the fact, there is no limit to the number of times you can file a claim on your car insurance unless your insurance policy has a limit which is quite rare. However, if you make more than two claims in a 2-year period, your policy will notify you that you could have been dropped. In cases like this, some insurers may increase your premium or drop you after three claims even if the fault isn’t yours.

What is Car Insurance Claim?

Before you know How many Claims are Allowed in Car Insurance you need to first understand what car insurance claims are. Take for instance when your car is damaged due to an accident or any natural causes, the cost of repairing the car could overwhelm you but when you file a claim with your car insurance company. They will either pay for the damages caused or take the car to a network garage for repair. This is what a car insurance claim does for you.

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How Many Car Insurance Claims are Too Many?

Finding out How many Claims are Allowed in Car Insurance can put you on the right path. However, there is no specific answer to this question because it depends on the type of claim and the extent of damage to the vehicle. But, it is advisable to not raise a claim if there are minor damages to your car. You are advised to only file a claim against the car insurance only if the damages are critical.

What Happens if I Make Multiple Car Insurance Claims?

Now that you have known How many Claims are Allowed in Car Insurance, it is time to know what happens when you make multiple car insurance claims.

  • Higher Premiums: filing more than one insurance claim during the policy year might show the insurer that you at a higher risk and this might make them increase your premium upon renewal.
  • Zero Depreciation Limits: if you have a zero depreciation add-on cover, your insurance company will not consider the depreciation of your car and its parts.
  • No claim Bonus: when you make no claims during the policy period, you can get a discount on your premium. The discount can go up to 50% for 5 claim-free years.
  • Deductibles: if the repair cost is lower or slightly higher than the deductible in your policy document then it is better not be file a claim.

However, it does not matter whether you have two car insurance claims within the same week or year. You need to know that all claims made within a span of three years will show as multiple claims on your claim history.

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