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Car insurance plays a crucial role in protecting your vehicle in the event of unforeseen incidents such as accidents. But have you ever wondered how many times you can claim car insurance for accidents within a one-year policy coverage period?
Can You Make an Insurance Claim Every Time You’re Involved in an Accident?
Most insurance policies do not limit the number of claims you can make within the policy period. In other words, you can claim car insurance more than once within a year. There are no caps or restrictions on the number of claims allowed during the policy period.
However, it is important to note that making multiple accident claims can affect your No-claim Discount (NCD). This could impact the cost of your car insurance premium when you renew your insurance policy the following year.
Things to Consider Before Making Multiple Accident Insurance Claims
While it is possible to make multiple car insurance claims within a year, the approval for these claims depends on several factors:
1. Not Exceeding the Insurance Coverage Amount
You can claim car insurance multiple times as long as the total claim amount does not exceed the coverage amount you purchased when you renewed your car insurance.
Situation 1:
Ali’s car insurance has expired. He renews his comprehensive car insurance with a coverage amount of RM50,000. In January, he gets into a car accident and makes a claim of RM15,000.
In August, Ali is involved in another car accident. After evaluation by the adjuster, the repair cost is RM20,000. In this case, Ali can still make a second accident insurance claim because the total claim amount has not exceeded the total insurance coverage.
2. Type of Insurance Claim
Multiple claims can only be made if you have purchased comprehensive or first-party insurance. Other types of insurance, such as third-party insurance, are not eligible for multiple claims.
Situation 2:
Ali is involved in an accident, but this time it is not his fault. His car is hit from the side while parked. In this case, Ali can make a No Fault Own Damage claim or a self-accident insurance claim if it is proven that he is not at fault.
Ali can also claim against the third party (if the culprit is known) or make a claim through his own insurance without affecting his existing NCD.
What are the Effects of Making Multiple Car Accident Insurance Claims?
Generally, it is advised to make a car insurance claim only if the car damage is serious or involves high repair costs. This approach can help you avoid the following issues:
1. Impact on Car NCD Rate
If the damage is minor, you are recommended to bear the repair costs using your own savings. Many people choose to use their own money if the repair cost is less than their current NCD rate. Making an accident insurance claim might result in losing your car NCD.
Insurance companies offer up to a 55 percent NCD discount as long as no claims are filed during the policy period. For those unaware, the car NCD is a form of reward or discount if no claims are made against the insurance policy each year.
The NCD rate varies depending on the vehicle class – car NCD discounts range from 25 percent to 55 percent.
2. Higher Insurance Premiums
Generally, the higher the car NCD rate, the lower the insurance premium you have to pay for the current year. If you claim car insurance, your NCD rate will reset to zero percent for the following year, causing your car insurance premium to become more expensive.
Moreover, making multiple car insurance claims indicates that you are a high-risk driver. Typically, insurance companies will adjust the new insurance premium rate (considering the risk assessment) when you renew your car insurance policy.
As a result, you will need to pay a higher insurance premium than usual. Therefore, you should always practice safe driving to reduce your risk of being involved in an accident.
Maintain Safe Driving, Renew Insurance with Qoala for the Best Protection
One of the best ways to avoid repeatedly claiming car insurance is to maintain safe driving habits. Reduce your risk of getting involved in accidents by practicing safe driving, such as avoiding speeding in bad weather and always following road rules.
If you need a comprehensive and top-notch car insurance plan for your protection, look no further. Visit Qoala’s website to access all the information related to car insurance at your fingertips. Qoala is the leading platform for comparing and renewing car insurance in Malaysia.
