Type 1 Car Insurance – Unlimited Claims! But Be Careful If You Make Frequent Claims

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Type 1 Car Insurance – Unlimited Claims! But Be Careful If You Make Frequent Claims

It is true that type 1 car insurance allows you to make multiple claims, with no limit on the number of times within the insurance year. But! If you make frequent claims within a similar period of time, or if you make a claim that involves a lot of damage, including if the damage exceeds 70% of the insured amount, the insurance company may consider canceling the policy with us because they have assessed that there is a risk of loss.

Why Should We Not Make Frequent Insurance Claims?

Insurance Premiums are Rising

Frequent claims may cause the insurance company to increase the premium in the following year. Especially if there are many claims, the premium may increase significantly, more than 50% depending on the number of claims and types. If the insurance company sees that the car owner is at high risk of insuring in the future.

The Coverage Amount May Be Reduced

Frequent claims mean that the insurance company cannot guarantee full coverage in the following year because it is assessed that the car owner is at high risk. The new policy may have a limited coverage amount, causing us to receive less coverage. As a result, we may not be able to claim the full amount as before. 

Loss of Premium Discounts

Making multiple claims can result in the loss of these discounts and higher premiums in subsequent years.

Discount on premiums in subsequent years if you have never made a claim and have a good driving record

• 20% discount if you have never made a claim in the first year
• 30% discount if you have never made a claim in 2 years
• 40% discount if you have never made a claim in 3 years
• 50% discount if you have never made a claim in 4 years

Although it is our right to claim car insurance, frequent claims may increase the premium, reduce the coverage amount, and lose the right to the discount in the following year. Therefore, if it is not necessary, we should save the right to claim insurance only when it is really necessary. Because it will help us save the premium in the long run and get full coverage.

Want to renew car insurance? Looking for affordable car insurance? Let Motorist help you with a quote – right away! 

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