What Happens if You Have Multiple Car Insurance Claims?

Car insurance claims are messy. And when it comes to multiple car insurance claims, many people need to learn how to handle the process and how the claims impacts your insurance policy. This article covers minute details about car insurance claims to help you learn what to expect.

Multiple Claims and Deductibles

Two car insurance claims in a week or within two years are the same. Claims made within three years will reflect as ‘multiple claims.

Multiple claims in close occurrences raise questions about deductibles. If you have claims for two different accidents, both issues should be solved simultaneously, saving you time and money. Both will come under the comprehensive part of the policy. But since there are two different incidents, you might have to pay two deductibles. If damage is inflicted on the vehicle by two causes, a full deductible is applicable for each cause. However, there might be some variations in the law in some states.

Standard Guidelines for Preferred Carriers

Along with the frequency of filing claims, the kind of claims you make are also crucial. Before filing the claim, consider the total damage and the person at fault.

At-fault claims:

The carrier might not be interested in policy renewal on submitting multiple at-fault claims.

Comprehensive claims:

Filing three or more claims yearly will affect your premium. It would depend on the carrier and how they manage comprehensive claims.

No fault claims:

In most states in the USA, if you file a claim against someone else, your carrier will not oversee it, as the claim is filed against the policy of the at-fault party.

How to Avoid Multiple Claim Penalties

At-fault claims are the worst to file. Try driving with caution so that no accidents take place. Secondly, pay for the claims out of your pocket as it is the cheapest option. Try dealing with one claim at a time. Many carriers might cancel your policy for multiple claims, increase the premiums exorbitantly, or not agree on policy renewal at the end of the tenure.

Cancellation vs. Non-renewal

Before filing multiple claims, know the difference between cancellation and non-renewal of the policy.

What Does It Mean If My Policy Is Cancelled?

Cancellation implies that the carrier ends the policy before the term is over. Non-compliance with the policy contract, failed premium payments, or furnishing false information on the claim application form are some reasons for policy cancellation.

What Does It Mean If My Policy Is Not Renewed?

If the insurer drops the policy at the end of the payment term, it is known as the non-renewal of the policy. Failing to pay the premium is one of the most common causes of policy non-renewal.

Risky Actions that May Affect Your Policy

Here are some risky actions you must avoid as that will affect your car insurance claims:

  • Too many accidents
  • Bad driving record with many traffic violations
  • DUI or DWI records
  • Too many claims
  • Fraudulent claims and late premium payments

Secure Your Vehicle with Family Financial Insurance Group!

Family Financial Insurance Group is the ultimate solution for all your auto insurance needs. Whether you’re searching for the perfect policy or require assistance with claim settlements, we’ve got you covered. Contact us today for further information and take advantage of our comprehensive services.

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