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;
Et dans le pire des cas, ne pas renouveler et annuler votre contrat pour votre automobile, habitation ou entreprise. *Pour en savoir plus nous vous invitons à lire notre précédent article expliquant pourquoi les assureurs résilient les assurances après plusieurs réclamations.

How can you avoid having too many complaints?

Avant de procéder à une réclamation, nous vous conseillons fortement de contacter votre agent ou votre courtier d’assurance pour lui demander s’il est rentable pour vous d’effectuer la réclamation. Évitez de réclamer de petits montants ! Rappelez-vous que votre expérience de sinistralité est un facteur important lors du renouvellement de votre assurance. De plus, limiter vos réclamations pourrait vous permettre d’éviter de devoir vous assurer dans un marché non standard spécialisé dans les fréquences élevées de réclamation, et donc, de payer des primes salées. *Pour en savoir plus, nous vous invitons à lire un de nos précédents articles sur les problèmes reliés à une fréquence trop élevée de réclamations. Également, nous vous invitons à être proactif : investissez dans la prévention. Croyez-nous cela est plus rentable à moyen et à long terme que d’effectuer une réclamation.

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.