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How many claims can you make under your car insurance policy

30 August, 2019

More and more people are embracing modes of personal transportation, like cars and two wheelers, to keep them mobile for work and leisure. As it is a large investment for most people, it is wise to cover your vehicle against unfortunate incidents by purchasing a package motor insurance plan.

 

What is a car insurance claim?

When you have suffered a loss or damage to your vehicle, you need to lodge a ‘claim’ with your insurance company for reimbursement or to make good the loss you have suffered.

 

What is the process of claiming car insurance?

Claiming car insurance is an easy process. For a vehicle repair claim, you can follow these steps:

 

  1. Use the toll-free number to call the insurer and register a claim.
  2. After the registration of the claim, a claim number will be given to you, which can be used as a reference number.
  3. After receiving the number, you are required to take your vehicle to an authorized repair shop. Your insurer will assist you in finding a suitable repairer.
  4. Following this, you must submit all the necessary documents.
  5. Repair work gets done upon the confirmation of its liability by the car insurance company, which may be given through the surveyor.

 

How many car insurances claims can one make in a year?

There is no restriction on number of claims allowed under your policy, so you can claim as many times as you want. However, making a claim under your policy will affect your No Claim Bonus and making repeated claims will make your insurance more expensive when you want to renew the policy.

 

The effect of multiple claims on the Insured Declared Value (IDV) of vehicles

IDV refers to the value for which the vehicle is insured. It is the maximum amount a car insurance company can pay for under a policy for a given claim. The IDV becomes relevant when the cost of repair for the vehicle becomes uneconomical or impossible and it would be better to process your claim on an alternative method to repair (such as constructive total loss or total loss).

 

An insured person needs to be aware of the fact that due to depreciation in the market value of a vehicle every year, the IDV of the vehicle decreases every year based on a schedule available the policy terms and conditions.

 

How to decide whether to make claims or not

It is a fact that there are no limits on the number of car insurance claims that you can make during the tenure of the policy. However, in certain scenarios, not claiming car insurance would be the best option. These scenarios include-

Case 1: When the No Claim Bonus is higher than the repair expenses

Case 2: When the repair expenses is not greater than the deductible amount mentioned in your policy

 

To sum it up

Car insurance protects you against potential financial losses due to an accident, theft or by other means. You can make more than one claim in a year. However, doing so has its drawbacks. Always read the terms and conditions, to be aware of how your motor insurance policy works.