What Happens if You Have Multiple Car Insurance Claims?

Filing a car insurance claim is an unfortunate reality that all drivers face at one point or another during their lifetime. It is important to know how to file a claim but also what to expect when you do file a claim. Unfortunately, you could face multiple claims in your lifetime or even within a single year, which can make your auto insurance policy more complicated. back of a silver car driving on the road next to trees

back of a silver car driving on the road next to trees

When Should You File a Car Insurance Claim?
Since an accident is likely to raise your rates whether you file a claim or not, there are few moments in which you do not want to file a claim. In general, you should have the damage to your vehicle evaluated by a professional. If the cost to repair your vehicle out of pocket is less than the cost of your deductible, you may not want to file a car insurance claim.

It is also important to keep track of how many claims you have filed.

How Many Car Insurance Claims Can You File?
There is no strict number of car insurance claims you can file within a year, although you may only file one auto insurance claim for a single accident. If you file a claim directly after an accident for damages to your vehicle and settle the claim before filing a claim for injuries for the same accident, you may not receive compensation. This is why it is important to make sure all injuries and damages are assessed before filing a claim. Gathering all of the important information can help the claims process go quicker and help you receive compensation for all damages involved.

Although there is no set limit to how many claims you may file in a year, it is still important to avoid filing too many unnecessary claims. Not only can claims raise your rates, but it can also set off red flags with your insurer. This is especially true if there are multiple fraudulent claims. Filing fraudulent claims is known as soft fraud, which can lead to an insurer cancelling your policy.

Do Your Rates Go Up After Filing an Auto Insurance Claim?
As a rule, your rates will rise after filing an auto insurance claim. This is because rates are primarily based on how much money you will cost the insurer. If you file a claim and cost the insurance provider money in paying compensation, your rates are likely to rise.

The rate at which your auto insurance premiums rise depends, however. Some accidents or violations are not as severe as others. For example, a single at fault accident may raise your rates by around 30%. On the other hand, an accident you cause while DUI (driving under the influence) could skyrocket your rates by 100%.

However, your rates can go up even if you don’t file a claim. This is because part of your car insurance premiums is calculated on your driving record. If you have a violation or accident on your driving record, even if you didn’t file a claim, you could see a spike in your car insurance premiums.

When Can an Insurer Cancel Your Auto Insurance Policy?
An auto insurance policy is an agreement between you and the insurer, meaning that either of you may exit the agreement at any time. An insurance provider will generally only cancel your policy in a select few circumstances, however, such as if you commit soft fraud or become too high risk to insure.

High risk drivers are those who:

Have a poor driving record
Have a low credit score
File several car insurance claims in a short amount of time
Have several traffic violations

If you become a high risk driver while you have a policy, your insurance provider may cancel your policy. They must give you a notice before doing so, however, which is typically 30 days.

As the insured, you also have the right to cancel your auto insurance policy at any time. This won’t necessarily affect your rates in a good way, however. If you cancel your policy directly after an accident, for example, you will still pay higher rates based on that accident. This is because the accident follows your driving record rather than your current insurance policy.

You can also cancel your insurance policy while a claim is open, but it will not affect the open claim. For example, if you file a claim with your current insurer and switch insurers while the policy is active, your original insurance provider will still handle the claim. Any claims after that, however, should be handled by your new insurance provider and policy.

What Happens if You Have Multiple Car Insurance Claims?

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