Car Insurance Claims

How Many Car Insurance Claims Can I Make in a Year?

4th May 2022 8min read 225 views

Every vehicle owner understands the importance of a good car insurance policy. If your car gets damaged in an accident, your insurance plan will help pay for the repairs. To enjoy the benefits of your four-wheeler insurance plan, you must file car insurance claims. A claim is an official request you make for compensation from your insurance company. People avoid filing multiple car insurance claims in a single year. Let’s look at why they do this and if there’s a limit on the number of claims you can file.

Limits on Filing Car Insurance Claims

Generally, your insurance company will not limit the number of car insurance claims you can file in a year. You must check your policy documents carefully to understand the terms and conditions. For example, if you have opted for the zero-depreciation add-on, there could be a few limitations. You might only be able to make one or two claims against the add-on cover.

How Do Multiple Car Insurance Claims Affect Me?

While there is no limit to how many times you can file a car insurance claim, multiple claims can affect your insurance policy.

No-Claim Bonus
Your insurance policy offers a no-claim bonus for every year that you get through without filing a car insurance claim. If you file even a single claim, you risk losing your entire bonus. You can enjoy a 50% discount on your premium after five claim-free years, so you should carefully consider your options before filing a claim.

Higher Premiums
If you file multiple car insurance claims, your insurance company will view you as a high-risk client. To offset this risk, they will increase your car insurance premium.

Lower Car Value
Your car insurance policy will detail your car’s Insured Declared Value (IDV). The IDV works as your sum insured. It is the maximum amount your car insurance company will pay for a claim against your vehicle. If you file multiple claims, your insurance company will decrease your IDV substantially for the following year. A lower IDV could mean less financial support if there’s a complete total loss of your vehicle.

When’s the Right Time to File a Claim?

Seeing how multiple car insurance claims can affect your policy, you should carefully consider when to file. Typically, avoid filing a claim for minor issues such as dents and scratches. Two calculations can help you make this crucial decision:

Deductible Amount
Your car insurance policy has something known as a mandatory deductible. Assume your deductible is INR 5,000. Every time you file a claim, you have to pay I NR 5,000, and your insurance company will take care of the rest of the claim amount. If the repairs for your car work out to less than the deductible amount, it doesn’t make sense to file the claim. You will receive little to no financial support and will have to pay the balance from your pocket. If the claim amount is significantly higher, you should file a claim.

No-Claim Bonus
You can enjoy a no-claim bonus of 50% against your car insurance premium. If you file even a single car insurance policy claim, you risk losing the entire bonus amount. Ideally, you should only opt to file a claim if the repair amount is higher than your no-claim bonus amount.

Your car insurance policy should offer financial stability at a difficult time. To ensure you receive the claims you deserve, you must carefully consider whether to file a claim after every incident. While your Edelweiss car insurance plan does not limit your claims, filing fewer claims will benefit you in the long run.

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