When not to make a car insurance claim
Every car owner is required to carry car insurance when driving their vehicle. A robust motor insurance policy offers third-party coverage as well as protection for your car against theft, accidents, and natural and man-made disasters. When you get car insurance and file a claim, the insurance provider is responsible for paying the repair costs under the policy's coverage. But it's also critical to remember that not every circumstance requires you to call your insurance company right away and request coverage as a vehicle owner.
The situations where you should refrain from filing a car insurance claim are listed below:
• Minor damages -
Every car usually has small damages like dents, scratches, cracked mirrors, etc., when it is used constantly. When you file a claim for such small repairs, this might affect your claim history. The insurance providers may regard you as an unsafe driver, increasing premiums when your policy renews next time.
• Higher deductible -
There are two different kinds of deductibles for car insurance: compulsory and voluntary. The first is set at Rs. 1,000 for cars with engines under 1500cc and Rs. 2,000 for those with engines above 1500cc, while the other is set by the policyholder to be provided during the claim. The premium will be lesser and vice versa, depending on the deductibles. It is pointless to file a claim if the total is less than the deductible.
• Accumulated NCB is higher -
Insurance companies reward customers with a No Claim Bonus (NCB) for not filing any claims throughout the policy year. Your NCB benefit typically accrues from a 20% to 50% discount on your personal damage component for each year without a claim during the policy's first five consecutive years. The wisest course of action is to pay for the repairs yourself if the no-claim bonus is more than the cost instead of filing a claim and losing the accumulated NCB.
• Repair expenses were covered by a third party -
Your vehicle can be damaged by a third party, and if it is the case, you can file a claim against your insurance plan if the other driver was at fault. However, you should not file a claim if the damage is minimal and the third party wants to make up for it. Instead, you should resolve the matter right away.
Conclusion
The most common reason why people get car insurance coverage is for a claim. But choosing the claim option on a car insurance policy might not always be the best course of action because you can probably end up losing more money than the cost of the damage and also will be paying a high premium amount afterwards.
Therefore, it is wise to take the aforementioned points into account before making any decisions about a car insurance claim.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.