What can frequent claims on auto insurance policies lead to?

Frequent claims on auto insurance policies can lead to policy non-renewal because insurers closely monitor a policyholder's claims history as part of their risk assessment process. When a policyholder files multiple claims, it may indicate a higher risk of future claims. Insurers aim to minimize their risk exposure, and a history of numerous claims can cause them to reconsider continuing coverage for that policyholder.

As a result, the insurer might decide not to renew the policy when it is up for renewal, as they may see the policyholder as a higher risk than they are willing to accept. This action aligns with the insurance principle of loss management, where insurers seek to maintain profitability by limiting exposure to those who frequently utilize their claims services.