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What Happens if You Have Multiple Car Insurance Claims?

Mar 09, 2023

Car Insurance

What Happens if You Have Multiple Car Insurance Claims?

The key to keeping car insurance costs low is partly to minimize the number of car insurance claims you file in your lifetime. While serious accidents may require expensive repairs, minor bumper incidents don't need to be filed as claims. The more claims you file, the more likely you'll get stuck with high rates. Here are insights to know about filing multiple car insurance claims.

Multiple Claims and Deductibles

Any two auto insurance claims filed within a three-year period will be classified as "multiple claims" in your insurance claims history. If you file more than three claims during this period, it can trigger rate hikes.

Separate incidents are sometimes combined into one claim by drivers who want to take care of two repairs at once. While both items might be covered by a comprehensive auto insurance plan, if the insurer determines they are separate damages, you may have to pay two deductibles.

Standard Guidelines for Preferred Carriers

Before you file any car insurance claims, you should be clear on the factual details such as who was at fault in an accident and estimated repair costs. Here are the three main different types of claims that might arise from an auto accident:

  • At-fault claims: If you file a claim even though you were at fault, it can lead to your insurer denying your policy's renewal.
  • No-fault claims: Most states allow people to file auto insurance claims against other drivers without dealing directly with their own insurance providers.
  • Comprehensive claims: It usually doesn't hurt to file a second comprehensive claim in a three-year period, but a third claim can lead to a higher premium.

How to Avoid Multiple Claim Penalties

The best ways to avoid multiple claim penalties involve prioritizing safe driving and keeping track of your claims. Consider paying for minor repairs out of pocket rather than relying on your policy to fix every little dent on your vehicle. Be aware that filing two claims in a short time period can cause your insurer to view you as a high-risk driver.

Cancellation Vs. Non-Renewal

Find out the consequences with your insurance provider of both cancellation and non-renewal of your policy due to filing too many claims in a three-year period.

A canceled policy means the insurer discontinued the policy prior to its expiration date. This action typically happens within 60 days of the start date. It might be for including inaccurate information on your application. Non-renewal of a policy occurs when your insurer ends your policy at the end of its term. Filing excessive claims is one of several reasons this action can happen.

Risky Actions That May Affect Your Policy

Some of the many reasons an insurance company can drop you as a customer include developing a bad driving record, getting a DUI, or getting into multiple accidents. Insurers are also quick to drop people who are unreliable at paying premiums on time.

Maximize Your Auto Coverage with Fuller Insurance!

If you want to keep regular auto insurance payments low, be aware that you should keep car insurance claims to a minimum. You can avoid rate hikes by being honest on your application and practicing driver safety. Contact our agents at Fuller Insurance Agency today for further information on getting the most for your auto insurance coverage.

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