Do Multiple Car Insurance Claims Impact My Premiums?

If you file a car insurance claim, your insurer will likely consider you high risk, and therefore, raise your premiums. They will further increase your premium if you file multiple car insurance claims in three years. The period (either the same week or a year apart) between two claims doesn’t matter, as the insurer will consider all claims filed within the said three-year period as multiple claims. Besides increasing your premiums, filing multiple car insurance claims can lead to policy non-renewal or cancellation.

How Do Multiple Claims Affect Deductibles?

In case of a car accident, your car insurance will cater to any resulting damages as stipulated in the policy. However, you will first need to pay out a certain amount out of pocket before your coverage kicks in. This amount, known as deductible, applies per peril, meaning that if two separate events cause damage to your car, you may have to pay two deductibles. For instance, if you get involved in an at-fault accident, and a tree later falls on your already damaged car, you will likely pay a deductible for each peril. Therefore, if you file multiple claims, be ready to pay a deductible for each claim filed unless your insurer decides to charge for a single deductible.

How Does the Type of Claim Affect Your Car Insurance Cost?

While filing multiple claims can impact your premiums, some types of claims may not have much effect on them. For instance, filing a no-fault claim may only raise your premiums to a small extent. However, filing at-fault claims can cause your premiums to increase significantly and, in extreme cases, lead to policy cancellation or non-renewal. Comprehensive claims can also cause increased rates, especially if you file three or more claims within three years. Nonetheless, these rules vary from one insurance provider to another, meaning some insurers may not raise your rates for multiple comprehensive claims.

Tips to Avoid Multiple Car Insurance Claims

It is nearly impossible to prevent traffic accidents and other car-damaging perils. However, you can avoid filing multiple car insurance claims in the following ways:

  • Pay Small Claims Out of Pocket – Provided you have car insurance coverage, filing a claim will likely be your first option to compensate for the damage or loss. However, this may work against you, especially if you’ve filed multiple claims within a short period. To avoid filing multiple claims, don’t file claims for minor damages and instead pay for them out of your pocket. It may seem expensive, but it will work in your favor in the long run.
  • Practice Safe Driving – While it is impossible to prevent car accidents, driving safely can significantly minimize the chances of getting involved in one. Additionally, you will be less likely to cause an accident, which means that any claim you file will be a no-fault one, and it may not cause much harm to your premiums.

Consult with Jack Stone Insurance Agency

Filing multiple car insurance claims can be detrimental to your car insurance coverage and finances. If you have any questions regarding auto insurance, contact our team at Jack Stone Insurance Agency, and we are ready to assist you.

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