For many people, paying for insurance is seen as an expense rather than an investment. It’s true: car or home insurance is a product that you hope you’ll never have to use… It’s nothing like buying a new car or a new pair of shoes! As insurance brokers, we often receive calls from clients who are determined to file a claim when something goes wrong, thinking that they will finally get their money’s worth from the insurance premiums they have paid all their lives. However, this is not always the best solution! Too many claims can have very unpleasant consequences. In this article, Assurances Multi-Risques would like to make you aware of these consequences and give you some tips on how to avoid them.

What constitutes an excessively high claims frequency for an insurer?

Unfortunately, the definition of an excessively high claims frequency varies from one insurer to another. We are therefore unable to provide you with a specific limit. However, a minimum of two claims may sometimes be sufficient. And over what period of time? It depends… Some insurance companies may go back up to 10 years in your file to assess your claims frequency, while others may be more flexible.

How does the insurer evaluate your insurance file upon renewal?

Obviously, a claim will increase your insurance premium since you will lose your no-claims discount. However, for an insurer, renewing a policy after a claim is a fairly simple task. It becomes more complicated when a policyholder has made several claims in a short period of time. In such a situation, the insurer may take various decisions (which are unlikely to be to your liking):

Increase your deductible and insurance premium;
Require you to make corrections (for example, if you have been repeatedly burglarized, they may ask you to install a connected alarm system);
Reduce and remove some of your insurance coverage;
And in the worst case scenario, do not renew and cancel your car, home, or business insurance policy. *For more information, we invite you to read our previous article explaining why insurers cancel insurance policies after several claims.

How can you avoid having too many complaints?

Before filing a claim, we strongly advise you to contact your insurance agent or broker to ask whether it is worthwhile for you to file the claim. Avoid claiming small amounts! Remember that your claims history is an important factor when renewing your insurance. In addition, limiting your claims could help you avoid having to insure yourself in a non-standard market specializing in high claim frequencies, and thus avoid paying high premiums. *To learn more, we invite you to read one of our previous articles on issues related to an excessively high frequency of complaints. We also encourage you to be proactive: invest in prevention. Believe us, this is more cost-effective in the medium and long term than making a claim.

In closing, we hope we have made you aware of the importance of avoiding excessive claims. And if you are one of those who hope to “get your money’s worth” from your insurance by filing a claim whenever possible, you now know that filing too many claims can cost you dearly! Only your broker or agent can advise you on whether it is worth making a claim or whether it is better to refrain. For advice from a reputable advisor, contact one of our brokers. They will give you the straight facts and be there for you when you need them.