When you're a car owner, the experience of owning a car not just about the thrill of driving but also about ensuring your ride is road-ready and safeguarded. Car insurance covers legal mandates and potential financial bumps, providing a safety net against unexpected damages. Now, let's talk about claim settlement – when you ask for help fixing those dents and dings. But hold on, how many times can you tap into this backup plan under an Indian car insurance policy? Buckle up as we discuss through the specifics of the number of times you can raise a claim against your car insurance and show how it affects you, the policyholder.
Amount of Car Insurance Claims You Can Make in a Year
If you are wondering how many car insurance claims allowed in a year? We have got you. Generally, there isn't a fixed limit on the number of claims you can file under a car insurance policy in a year. With the benefit of online car insurance claim, you can easily raise a claim as and when required. However, it's important to note that every claim affects the No Claim Bonus (NCB), a discount on the premium for claim-free years. Repeated claims within a year can also increase premium rates during policy renewal.
That said, if you have opted for a Zero Depreciation cover, which eliminates the depreciation factor from claims, certain insurers might restrict the number of claims allowed within a year. The limitations associated with this cover vary from one insurer to another.
What Happens if you Make Multiple Car Insurance Claims?
Let us see how a claim alters or augments different aspects of your car insurance coverage -
No Claim Bonus
Think of the No Claim Bonus as a little reward for your responsible driving habits. It's like a badge of honor that insurers pin to your profile when you complete a policy year without filing any claims. This badge includes a perk – a discount on your car insurance premium during policy renewal. The longer you drive without making a claim, the larger this discount becomes, making it an attractive incentive to drive safely. However, if you decide to file a claim, this bonus might bid farewell, and your next premium could see an increase. So, while it's a tempting treat to enjoy, you need to weigh the advantages of keeping your NCB intact against the potential cost of making a claim.
Increase in Premium
Frequent claims can have a significant impact on your car insurance premium. Insurers might consider you a higher-risk customer when you consistently file multiple claims. This perception of increased risk prompts insurers to adjust your premium accordingly. Your premium might rise substantially during policy renewal, making car ownership more expensive. Insurers use claims history to assess the likelihood of future claims, and multiple claims indicate a higher likelihood. This premium increase can negate the benefits of a No Claim Bonus (NCB) and lead to higher overall expenses. Thus, while filing a claim is your right, it's important to consider the potential long-term financial repercussions, such as increased premiums, before deciding to raise a claim for minor damages.
Zero Depreciation Limit
If you have opted for a Zero Depreciation cover in your car insurance policy, there might be limitations on the number of claims you can make within a specific time frame. This coverage is designed to provide comprehensive coverage without factoring in depreciation. However, insurers impose a cap on the number of claims you can avail of under this coverage, usually one or two claims per policy year. This restriction ensures that the insurer doesn't bear excessive financial burden due to frequent claims for repairs that could be attributed to regular wear and tear. Before filing a claim under the Zero Depreciation cover, you must be aware of any limitations mentioned in your policy document to avoid potential claim rejections or policy complications.
Deductible
In car insurance, a deductible is the predetermined amount of money the policyholder agrees to pay out of pocket before the insurance coverage kicks in for a claim. It's a cost-sharing arrangement between the insurer and the insured. If you make multiple claims, especially for minor damages, you might pay the deductible amount each time you file a claim. It can add up over time and offset the benefits of filing claims. For instance, if your deductible is ₹2,000 and you make three claims for minor damages within a policy year, you'll have to pay ₹2,000 for each claim, resulting in a total expense of ₹6,000. Therefore, it's wise to consider the deductible amount and the cost of repairs before filing a claim, particularly for damages close to or lower than the deductible amount.