How Many Car Insurance Claims Can You File in a Year?

After an unfortunate accident or damage, filing a car insurance claim can ease your financial burden. However, many vehicle owners wonder whether there is a limit to the number of claims that can be raised in a policy year. Well, the truth is that there is no fixed legal limit. But the number of claims you file can directly impact your premium costs, the benefits you receive from your policy, and renewals. Let's break it down.Read more

Is There a Limit on the Number of Claims You Can Make?

As per industry experts, there is no restriction to the number of claims you can file under your car insurance policy in a year. In cases of frequent damage to your vehicle due to accidents, you can file as many claims as you want.

However, please note that your insurance provider can add such a clause in your policy while renewing it if the claims are too many in any given financial year. So, ensure you read your policy wordings thoroughly while renewing it.

Own-Damage Claims and Third-Party Claims: How Do These Differ?

Understanding the difference between own-damage and third-party claims helps you decide when raising a claim actually makes sense. Have a look at how both claims differ:

• Own-Damage Claims: These are claims for damage to your own car. Own damage claims affect your No Claim Bonus (NCB) and might increase your renewal premium.
• Third-Party Claims: These are claims related to the injury, death, or property damage of another individual. There is no limit on the number of third-party claims, and they do not affect NCB.

What Happens When You File Multiple Car Insurance Claims?

Vehicle owners often worry about raising multiple car insurance claims due to the following consequences:

• Increased Renewal Premium: Since insurers view multiple claims within a short duration as a high-risk profile, they often increase premiums upon renewal (around 10-15% or more) to compensate for the risk.
• Loss of No Claim Bonus (NCB): For every year you do not raise a claim, your insurer offers you an NCB discount on your renewal premium amount. This discount goes up to 50% after five consecutive years without making a claim. Raising even a single claim for own damages resets the NCB to zero, which increases the renewal premium.
• Policy Non-Renewal/Cancellation: If you consistently file multiple car insurance claims, your current insurer may deny renewing your coverage, and you will have no choice but to find a new one with a higher premium amount. Alternatively, you might be allowed to continue your policy coverage with the existing insurer, but without add-ons or increased deductibles.

How Many Car Insurance Claims are Too Many Claims?

There is no hard and fast rule when it comes to the number of claims that you can register. Though, it is always beneficial for an individual to do prior calculations and keep in mind the fundamentals before deciding whether to raise a car insurance claim or not.

However, there can be certain exceptions where the number of claims you can make in your car insurance is limited. For example, in the case of a claim under zero depreciation add-on cover, the number of times you can claim during a year is restricted and its count can vary from one insurer to the other. Have a look:

Disclaimer: #1 The insurers/plans mentioned are arranged in order of highest to lowest gross direct premium income for motor insurance(total) by non-life insurers within India segment wise as per "Gross Direct Premium Income Underwritten By Non-Life Insurers Within India (Segment Wise): for the period up to March 2025 (Provisional & Unaudited ) In FY 2024-25", published by General Insurance Council. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The insurers/plans mentioned are offered by Policybazaar's insurer partners offering motor insurance plans on our platform for a complete list of insurers in India refer to the IRDAI website www.irdai.gov.in.

When Should You Avoid FIling a Car Insurance Claim?

The following are the instances in which you should avoid raising a claim under your car insurance and instead consider paying for repairs yourself:

1. Lower Repair Costs than the Deductible: Every car insurance policy includes a compulsory deductible (and sometimes a voluntary one), which is the amount you pay out of pocket before your insurance coverage starts. If the repair cost is less than the deductible, your insurer will not provide any compensation, so raising the claim is pointless.
2. Minor Damage or Small Scratches: For small dents, scratches, or broken mirrors, it is advised to get the repairs done at a local garage at your own expense. If you file a claim for these, your insurer may classify you a 'high-risk' driver, which can result in higher premiums or non-renewal of your policy.
3. Higher NCB discount than the Repair Cost: Another instance when you should avoid filing a claim is if the loss of your No-Claim Bonus (NCB) is greater than the damage repair cost. Since a single claim resets NCB to zero, it is cheaper to pay from your pocket if the repair cost is smaller than the NCB discount.

When Should You Always File a Car Insurance Claim?

You should never skip raising a claim against your car insurance in case of:

• Injuries: Medical expenses are unpredictable, and legal liabilities can be severe.
• Major Damages: If there is structural damage, frame issues, or high repair costs.
• Total Loss: Claims for theft or fire require a formal process to recover the car's Insured Declared Value (IDV)

Important Things to Remember Before Raising a Car Insurance Claim

• Legally, there is no limit on the number of claims you can file
• Every own-damage claim affects your No Claim Bonus (NCB)
• Add-on covers in car insurance may have separate limits on the number of claims you can raise
• Renewal premiums may go high if you make frequent claims
• Before assuming claim restrictions, carefully go through policy terms and conditions

Conclusion

There is no fixed limit on how many car insurance claims you can file in a policy year. But since every claim comes with a cost, it is important to understand when to claim and when to pay out of pocket. This helps you balance optimum protection with affordability and avoid any surprises at the time of renewal.