How many auto insurance claims is too many?

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Here's what you need to know...
  • Filing auto insurance claims is a common event that many policyholders will need to engage in while carrying insurance coverage
  • While there are no defined rules about how many is too many, insurance providers take several factors into consideration
  • The number of claims you file within a given amount of time can be one factor an insurance provider will consider
  • However, the severity of the claims you file may also be a factor that can be taken into consideration
  • There are times where handling a loss yourself may make more sense than filing a claim; this can help you avoid finding out how many is too many

One of the common reasons that an insurance policy is canceled or not renewed is a history of too many claims.

A common question that many individuals filing a claim may have is ‘How many claims is too many?

Although different insurance providers may have different ways of determining when you’ve filed too many claims, there are some general factors that they take into account.

If you have filed several claims and desire better auto insurance, compare at least three to four policies today. Enter your ZIP code above to find the best rates for you!

Filing Claims and Your Insurance History

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When it comes to filing claims, your insurance provider expects you to experience losses that you cannot recover from yourself.

Car insurance is designed to help you restore yourself to pre-loss conditions after you experience an accident or non-accident loss.

The longer you carry auto insurance, the more events will be added to your insurance history; filing claims is included in your insurance history.

When you apply for coverage through future providers or when your policy comes up for renewal, your history will be reviewed and taken into consideration. The more risk you introduce, the better chance that you will not fit into a provider’s risk profile.

Having a high-risk profile can result in cancellation or non-renewal.

While this does not assign a value to how many claims is considered too many, it’s important to speak to your insurance provider about this. Every provider is different, and there is no one-size-fits-all answer.

It’s important to consider how any filed claim may affect your insurance coverage in the future.

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Things to Remember When a Loss Event Occurs

There are different things to take into consideration when any potential claim event occurs, including:

  • How your deductible applies
  • Any potential premium increase
  • The long term effects on your claim history

The deductible is a portion of any loss that you are responsible for if there is an applicable deductible for the coverage that applies. Every claim may not require a deductible, so check with your carrier if you have any questions or concerns.

When you file a claim, you need to consider the potential impact the claim can have on your policy. Two of the most common ways your policy can be affected include premium increases or cancellation of your policy.

When you file multiple claims, your insurance carrier may raise your premiums to compensate for the increased loss settlements. The goal of any insurance provider is to bring in more money than they are paying out in claim settlements.

However, there are times where the number of losses exceeds what is reasonably acceptable for an insurance carrier. When this occurs, your policy may be canceled or non-renewed, which means your coverage would not continue after a specified date.

Canceling your policy and non-renewing your policy are two different instances, but they both leave you without coverage. If this occurs, you will need to seek coverage through an alternative provider.

Conclusion

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Claims are a part of any car insurance policy, but filing too many can lead to: 

While many insurance providers take your claims into consideration when determining your policy price and conditions, your claim history is also reviewed when it comes time to renew your coverage.

If you are worried that you’re filing too many claims, it may be necessary to assess your risks, your loss events, and what you can do to prevent future claims. Additionally, there are losses that you may want to resolve or settle on your own instead of involving your insurance provider.

If you can recover from a loss without your provider, it won’t affect your claim history and will keep your number of claims from rising higher.

If you need more affordable auto insurance and are concerned for a claim’s affect on your driving history, start comparison shopping today by entering your ZIP code below!

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