How Many Car Insurance Claims Can You File In A Year?

We all know that car insurance policies protect you from bearing the repair cost of damages that happen to your vehicle. However, is there a limit as to how many car insurances claims you can file in a year? Read on to find out.


Limit to Car Insurance Claims

A straightforward answer would be that there isn’t a limit on the number of claims you can file for car insurance. However, you should still make the effort to read up on your specific insurance policy as there might be clauses that prohibit you from filing too many claims. 

With the number of car accidents occurring still in a worrying uptrend, it is no doubt that the level of road safety has significantly deteriorated. Apart from that, the severity of road accidents has also increased, spurring car insurance companies to raise critical points in car insurance.

Why People Do Not Make Car Insurance Claims?

Believe it or not, it might be beneficial to not make car insurance claims on small and negligible damages, especially if they have already claimed insurance multiple times. This can be attributed to a few factors, such as affecting premium costs and preventing them from being eligible for ‘no claim bonuses.’

Oftentimes, when an individual claims car insurance a handful of times more than an average policyholder, it can affect their credibility in attaining future car insurance. In addition to that, payable premium in the following years might also increase due to the frequency of claims.

Preventing a claim also prevents them from being eligible for a “no claim bonus”, a bonus that some car insurance companies give out to policyholders for not claiming anything. This no claim bonus is usually given out as a discount on the premium that has to be paid in the following year, ranging anywhere between 20% and 50%. As such, some people feel that it might be a better idea to not file small claims if they have not yet claimed any insurance during that specific year.

How to Decide Whether or Not to Make Claims

With the drawbacks of making car insurance claims, many understandably become confused and wonder whether or not they should file for an insurance claim. Listed below are some of the examples when making a claim might not be advisable.

  • When a “No Claim Bonus” is valued more than a repair cost. If the bonus you are going to get is more than the cost of repair, you are better off paying for the repair fees and claiming the bonus.
  • When third parties are liable. If the other party of the accident is liable for damage done to your car, why not take advantage of that and spare your insurance?

At the end of the day, it will still depend on individual clauses and policies on whether it is wiser to make or not make an insurance claim. If you have been on the lookout for comprehensive car insurance policies, look no further from K&N Insurance Brokerage. Get a quote from us today and start your journey to unparalleled insurance coverage.