What happens if you have a high number of claims?

Having a high number of claims typically leads to an increase in your insurance premium. This occurs because insurance companies assess risk based on an individual's claims history. If you are frequently filing claims, the insurer perceives you as a higher risk, which means there is an increased likelihood of future claims. As a result, they may raise your premium to offset the potential costs associated with higher risks.

This increase in premium helps the insurance company maintain profitability while providing coverage to those who may not file as many claims. It is important for policyholders to understand that consistent claims can impact their financial responsibilities concerning insurance costs over time.