There are many advantages to owning a car. For example, you don’t have to think about using public transport every time you plan a family trip. You can plan an appointment and enjoy a road trip and take a spontaneous visit to the cinema in the city. But with all the advantages that a car brings, there are also some risks. It is not unusual to hear about traffic accidents or car theft in India. As a precautionary measure, it is, therefore, advisable to take out comprehensive car insurance online or offline. A common dilemma people face is making an insurance claim for small dents and scratches on their cars.
If your car has a minor accident, it can be difficult to decide whether or not to pay the cost of repairing the damage out of your own pocket. You might think that this is the exact reason why you took out car insurance in the first place. However, you cannot resist feeling doubtful about it.
Yes, you have taken out car insurance online to avoid the financial burdens of having an accident. However, there are advantages to not claiming insurance for minor repairs.
You need to know these four things before you decide to make a claim:
Claim for Dents and Scratches
1. Consider the Financial Options
When filing a claim, you must check the financial loss you would incur if you were to pay for the repair of the vehicle yourself.
What if your car only has a small dent and the neighborhood mechanic can repair it for a few hundred rupees? Isn’t that easier?
It is not a wise decision to go through the process of settling the claim just because you want to save a few hundred rupees. Avoid investing your time and effort in the insurance claim process by simply having it repaired yourself.
A deductible is an amount that you agreed to pay in an insured event when you purchased your car insurance policy online. It is generally around ten percent of the total amount to be settled. However, there is the possibility of opting for a higher deductible, which ultimately lowers the insurance premium.
Apply this to your case now. Imagine that your car has large dents that need to be repaired. The total bill for repairing the damage should be around twenty thousand rupees, and you have decided on a forty percent excess. In this case, you will have to pay eight thousand rupees out of your pocket, while the insurance company will cover the rest. It makes sense to make a claim here, as the total repair bill is not a small amount.
However, if the expected amount of the repair bill is small and you have chosen a 10% excess, it is not a good idea to make a claim.
3. Your No-Claims Bonus will be lost
As part of the insurance terminology, the NCB or no-claims bonus is the amount you receive as a reward for not making a claim during the term of the policy. The best part is that it is accumulated if it is not used over several consecutive years. However, you should also be aware that even a single claim during the term of the policy can result in the loss of your NCB.
So it is always a good decision not to claim small dents and scratches on your car.
4. Your Claim History Determines Car Insurance Premium
The frequent submission of car insurance claims in online or offline mode has an impact on your claims history. One or two claims in a year generally do not make a big difference. However, insurers may increase the premium for you if you recognize the higher risk associated with your claims history. They may even refuse to renew your policy for the same reason.
Therefore, it is a good rule to file a claim only in situations where you have to spend large sums of money on repairs.
There is no hard and fast rule associated with online submission of car insurance claims. It is in your own interest to keep an eye on a few important things so that you can get the most out of your car insurance.