With the increase in population and income of people, the number of vehicles on the road has also gone up significantly. However, the level of road safety has deteriorated. The number of accidents occurring daily has become more significant. The severity of accidents is more than times before, and the death rate with regards to road accidents has also gone up.
This all indicates that we indeed need to drive carefully, but it also raises some critical points in relation to car insurance. Multiple points are to be taken care of while buying and claiming the amount under car insurance
, but here we are addressing one frequently asked query that is there any limit on how many times can car insurance be claimed?
How many claims are allowed in car insurance?
So a straight answer is that there is no such limit on how many times we can claim car insurance in a year by you. However, your policy may carry any such clause, so you need to be careful while choosing the policy, or the provider may add any such clause in case of frequent claims while renewing the policy. So it is essential to read the policy while buying it.
Why do people advise not to claim insurance under certain circumstances?
Firstly, ‘No Claim Bonus’ is directly affected once you claim anything under your car insurance. No Claim Bonus is the discount you get on the premium to be paid in the following year if you don’t claim anything under the given policy in the previous year.
This ranges anywhere from 20% to 50% depending upon how long you have not put forward any claim. Now, if you put forward any claim, you have to start again, and all the accumulated discount for years is gone in a shot.
Frequent claims also affect the credibility of the customer and affect the premium to be paid in the following years. Repeated claims can make the renewal of policy more expensive.
It shall also be kept in mind that it is better to make a claim when the cost of repairing is too high.
How to decide when not to make claims?
Well, we know that there is no bar on how many times car insurance can be claimed; we need to know that when we should not make a claim. So here are the circumstances when it is advisable not to make a claim
- When ‘No Claim Bonus’ is more than repair cost: When the amount of succeeding no claim bonus receivable on insurance premium is more than the repair expense on the car, it is advisable to not claim anything under the insurance policy.
- When repair amount is not more than deductible: Deductible is the portion of claim amount payable by you whenever you claim insurance. If the amount payable by you doesn’t exceed the deductible, you won’t get anything from the insurance company.
So why miss on the benefits of not making a claim when you are not benefited from anything by making a claim?
Also, it should be kept in mind that if you are claiming an amount under one claim but the amount related to two separate events, then the deductible shall apply separately on both events.
- When a third party can pay your expenses: There are times when the other person you met with an accident is liable to pay you the damages suffered. So take benefit of that and spare your insurance for some additional time.
So, all in all, we can say that it is necessary to assess the quantum of loss suffered, applicable limits of deductible, any possible impact on ‘No Claim Bonus’ and then only make a claim. While this assessment is a deciding factor, it is important to be wary of how to claim car insurance
Does the filing of claims mean I will have to pay more premiums in the following years?
Many factors contribute in deciding what is the insurance premium
amount for your policy. It ranges from the changes in IDV, i.e., Insured Declared Value, general levels of premium amount, nature of the claim as to whether the claim was filed due to mistake of the policyholder or third-party, and some other factors.
So there is no direct relation as such between the number of claims and insurance premium.
Is there any time limit within which the insurance claim has to be submitted?
No, there is no time limit to submit the claim, but it is advisable to do it at the earliest possible, so the insurance company does not deny the claim making this the basis of the denial.
“I have claimed once under car insurance, but my IDV is not exhausted. Can I claim once again under the same policy?” asked Razia
There is no limit on how many claims are allowed in car insurance, provided it is within the IDV. Hence you can claim the amount under the same policy.