Filing an insurance claim with your insurance company when you suffer a loss is not always the best solution.

“But that’s what insurance is for! Isn’t that what we’re paying for?” 

Maybe you think the same thing. If that’s the case, you should definitely read the rest of this article! Assurances Multi-Risques can demystify this aspect of insurance. Then you’ll understand why it can be detrimental to make too many claims to your insurer, especially when it comes to small repairs.

Brokers, not insurers.

Before we get down to business, a little clarification is in order. We’re not an insurance company. This means that your car, home or business insurance premiums are not passed on to our wallet. When an independent insurance broker tells you that it is better not to file a claim with your insurer in your situation, it’s really not a good idea!

We’re not telling you this to avoid paying out any money, since we’re not insurers, but brokers. Also known as advisers, insurance experts and advocates. Now, to get back to our topic.

Yes, it’s fine to make insurance claims

But not too often and not for just anything. As we said earlier, filing a claim with your insurance company isn’t always a good option. Obviously, you pay for insurance so that when something (big) happens to you, you don’t have to pay a lot of money out of pocket.

But if you file too many claims for relatively minor damage, such as a broken windshield, it will have as much impact on your insurance record as any other claim. A claim is a claim, no matter what it is for, or how much it costs, whether you are responsible for the accident or not.

The more claims you file, the more your premium increases because you lose your no-claims discount. But that’s not all!

An insurer can cancel your insurance policy if your claim frequency is too high.

Yes, you read that right. If you file what your insurer deems to be too many claims in a short period of time, you may find yourself without insurance overnight. Of course, you would be notified if such a situation arose, but you would be forced to find another insurer, which isn’t all that easy.

The insurance companies you call will probably decide not to take a chance on you as a customer since you will be considered a “high-risk” customer. If this is your situation, you should know that all is not lost. Some insurance companies accept “non-standard” policies (which include anyone who can’t get regular insurance coverage), but you can expect to pay more to be insured.

At AMR, we get calls every day from customers who can no longer find insurance. Luckily, we deal with non-standard insurers. This allows us to find insurance for even the worst drivers!

Next time, call your broker before you file a claim.