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What Happens When You File Several Claims With An Insurance Company

You have several claims over the last 3 years and yesterday you just met with an accident. You are now concern if your current insurer will raise your rates or reject your renewal. Your worry will come true since your insurer will view you as a bad risk to take in for the next renewal.

To address your concern, it will depend on how the insurance company file their rate structure and look into difference scenarios by which an insurance claim (or multiple claims) could affect your future insurance premiums. It will definitely hurt your insurance premiums if you have the unfortunate experience of having to file too many claims.

Scenario 1 - If the accident is your fault, the insurance company will have to look at the record as part of the basis for determining the premium you will be required to pay for insurance in a future premium period.

Scenario 2 - Insurance companies have their logic of calculating the premium. One of the factors affecting your premium will be the number of accidents you have had and the size of the claim, even if it was not your fault.

An obvious way to save on the cost of car insurance is to do everything you can to keep from being involved in auto accidents by driving defensively, being alert, avoid speeding and careless driving habits.

Another way to save is to have the correct insurance coverage. Even though the premiums are more expensive but it protects you in case you are at fault or are partially liable in an accident. Comprehensive cover is the most ideal as it cover 3rd party damage and liability, fire and theft to your own vehicle. (See: Is Third Party insurance cover really the cheapest car insurance?)

When a driver is involved in accidents with more than 2 claims, an insurance company can reject renewal when it is due. If your insurance provider does not continue your coverages due to the amount of claims you have placed you can seek alternative to insure with a different insurance company. Your insurance company may continue to offer you a renewal premium, however, they can give you loading based on their rating system. A rating system usually takes into account the number of claims and the amount of the claims so your premiums will normally be higher if you have had a lot of claims against your policy's coverages.

If your insurance company raises your rates or does not continue to keep you as a policyholder because of the amount of claims you have had then you can shop around the insurance coverages you need. (See: Buying Car Insurance: You Better Shop Around)

Remember, Cheapcarinsurance.com.sg will assist you to seek for alternative and giving you solutions for different situation. 

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