Car insurance claims can help you during an accident because the insurance agency covers the damages to your vehicle. You may be involved in several incidents that make you file multiple car insurance claims in a year. However, do you know how many car insurance claims you can file in a year? Let’s find out.
What’s Your Insurance Claims Limit?
As long as you file claims for legitimate reasons and have valid car insurance during the incident, most insurance companies do not have any specific limits on the number of claims you can file every year.
However, if an agency decides that the accident was your fault, it can label the request as an “at-fault” claim. Typically, if you have more than two at-fault insurance claims in three years, either your insurance rate will be increased, or you will not be able to renew your policy.
Why You Should Not Make Multiple Claims
Based on your policy, you will pay a fixed premium and have a set deductible for claims. For minor damages, the cost will be covered through your deductible. If you file a car insurance claim for every accident, the agency can increase your car insurance rate.
12 American states are considered no-fault states, i.e., your insurance carrier will pay for the damages irrespective of whose fault it is. However, this policy is not applicable in California.
If your car gets damaged by a flood or an instance of vandalism, you can file a comprehensive claim. This does not affect your premium unless you make too many claims in a short period.
Car insurance coverage may have an aggregate limit per year. If you exceed the limit, you may not be able to make another claim for 6-12 months. However, aggregate limits do not apply to most car insurance policies.
Tips to Avoid Multiple Claim Penalties
- Drive carefully: At-fault claims are the worst claims to file. Avoid driving while you are drunk or sleepy. Stay off the roads during inclement weather. Put your car in the garage or under a carport and ensure that it is in good working condition.
- Pay for claims yourself: Of course, you don’t want to pay a huge amount of damages out of pocket. However, doing so may be the cheapest alternative. Calculate the immediate and long-term expenses involved in paying for damage on your own compared to submitting a claim and then decide accordingly.
- Pay premiums in advance: You can pay your premiums in advance and count your claim as part of the next year’s cycle. For this, you will have to contact your insurance provider and understand their specific terms and conditions.
It is important to note that filing more than one claim in a short period may indicate to insurers that you are at high-risk, resulting in an increase in premium rates.
It’s best to check with your insurance agency and understand your claims limit. If you are looking to purchase car insurance in Lancaster, CA, contact the experts at John E. Peakes Insurance Agency today. Our team can help you choose the best auto insurance tailored to your needs.