Car insurance claims for the small amounts

blog-img

21 Jul 2023

In case of minor accidents Should I be filing the car insurance claims for the small amounts.

Insurance policies minimize financial losses caused by unexpected, frightening events. The major benefit of car insurance is saving you from accidents and harm that might happen to your car. The company also pays for the medical expenses and other associated costs, in addition to coverage towards property damage sustained by another party if the insured car is involved in a collision.

In case of minor accidents, avoid filing small insurance claims, as many insurance providers allow certain benefits if you file small car insurance claims.

Do you need to file a small car insurance claim?

The requirement to file a small car insurance claim depends on several factors.

• Deductibles

The portion of a claim the policyholder must pay before their car insurance policy pays the balance is known as the deductible. As a result, you end up paying for some of the harm done to your car. Check out the example below -

If the total claim amount in question is 1500/- and you have a compulsory deductible of 1000/-, then the amount of 1000/- will be paid by you, and the insurance will bear the rest of 500/-. So here, the majority of the claim is borne by you. Also, here you will miss out on the no-claim bonus. Hence, you will incur huge expenses in the future.

• Effect of the car insurance claim on NCB (No Claim Bonus)

Policyholders can profit from NCB for a year without filing a car insurance claim. When renewing the insurance, the next year, this benefit is offered as a discount on the premiums. If you do not file claims under your car insurance coverage, the NCB builds up every year. However, filing small claims might eliminate the benefits of NCB.

• Future premium payable

You must evaluate the discounted amount with the sum insured, consider your alternatives, and maximize your advantages in accordance with your decision to make a modest insurance claim. Be aware that the price of future premiums relies not only on the reduction obtained through NCB but also on how many collisions a vehicle has been in. Whether you were at blame for the accident or the other party caused the damage, the frequency of your claims might raise your premiums in the future.

Therefore, you may choose whether to choose it or not based on how your car insurance policy will be affected whenever you make claims that are of a small quantity.

Conclusion

Remember that your insurance provider records every claim you make to assess the risks connected with you as an insured. The likelihood that you may have to pay higher premiums while renewing your coverage increases with the more claims you file. Thus, small claims must be avoided if a substitute provides better advantages.

Visit Kotak General Insurance for More Information.

Related Blogs
5 Tips for maximizing car insurance coverage
Reimbursement Vs Cashless Car Insurance Claims
Car Insurance Tips for Late Blooming Drivers


author-img
Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.