How Many Claims are Allowed in Car Insurance Policy
Car Insurance Policy: As a car owner, you must also meet the legal requirements by insuring your vehicle. In addition to meeting legal requirements, a car insurance plan provides you with a financial backup in case your car is damaged. The process of notifying the insurer of compensation for damage to the vehicle is called filing a claim. Let’s find out in this article
How many claims are allowed in Car Insurance Policy per year?
Generally, there are no restrictions on the number of claims you can make on your car insurance per year. However, it should be remembered that a car insurance claim affects the NCB (No Claim Bonus). Repeated claims in a year can also increase premiums when the policy is renewed.
However, assuming you have opted for zero depreciation coverage for your car insurance plan, there may be restrictions on the number of claims you can claim under zero depreciation insurance in a year. The number of claims allowed under this insurance varies with individual insurers.
How many car Car Insurance Policies are too many?
There is no concrete answer to this question. However, it is recommended not to claim if the damage is minor, such as a dented bumper or a broken mirror. Make a car insurance claim only if the damage is serious.
What happens if you make more than one Car Insurance Policy claim?
Although there are no limits on the number of claims, you should be careful when submitting a motor insurance claim. Here are reasons why you should refrain from filing multiple claims per year.
No Claim Bonus: NCB or No Claim Bonus is a premium discount you get for not making any claims during the previous policy period. The discount percentage increases with each additional year without a claim. The discount can go up to 50% if you file zero claims for 5 consecutive years. So if you claim, you will lose NCB benefits. Claim the insurance claim only if the repair cost is more than the NCB rebate.
Premium increase: If you file multiple car insurance claims, the insurer may increase the premium when the policy is renewed. Multiple claims mean you pose a higher risk to the insurance provider and the insurer may increase the premium on the policy to cover it.
Zero amortization limit: If you have purchased zero amortization cover for your vehicle policy, the insurer will not consider the amortization rate when settling claims. However, there may be a limit to the number of claims you can make under this cover per year.
Deductible: It is better not to claim if the cost of repair is less or slightly more than the deductible stated in your policy document. Even if you file a claim, you will receive inadequate reimbursement because of the deductible.
ACKO complaints procedure
Damages are one of the critical concepts related to car insurance. Simply put, submitting a claim is nothing more than you (the insured) informing ACKO (the insurer) of the damage, and handling the claim is the compensation you receive from ACKO. There is a process to apply which is usually time-consuming if you go the traditional route. But ACKO, as a digital-first insurer, offers a seamless claim experience.
Here are the steps to file a Car Insurance Policy online at ACKO.
Step 1 – Log in to your ACKO profile via the ACKO website (www.acko.com) or mobile application.
Step 2 – Open the policy tab and select the “Claim Now” option.
Step 3 – Provide the required information regarding the car damage and documents (if required) and submit the claim.
For minor damages, you will receive a settlement of the claim within a few hours. If the damage is serious, the claims team will contact you to process the claim. ACKO will repair your vehicle within 3 days and deliver it to your door (in selected cities).
So now you know that there is no limit to the number of insurance claims per year. But that doesn’t mean it’s okay to submit multiple applications. It is better to avoid minor damage claims or if the repair costs are less than NCB or equal to the deductible. The most significant disadvantage of claiming multiple claims is the loss of NCB and an increase in premiums.
However, if the damage to your car is serious, the first thing you should do is inform the insurer (in this case ACKO) and make a claim with the relevant documents. You can easily file a claim online at ACKO and it only takes a few minutes. Finally, be careful when making a claim, call for a claim after considering all the factors listed in this article.