There are many advantages of owning a car. For instance, you don’t have to think about choosing public conveyance every time you plan a family outing. Plan set a date, and enjoy a road trip or a spontaneous movie outing in the city. However, with all the benefits that come with a car, there are some risks too. It’s not uncommon to hear of road accidents or car theft in India frequently. So, as a precaution, buying a comprehensive car insurance policy online or offline makes sense.
A common dilemma people face is filing an insurance claim for small dents and scratches on their cars. If your car gets in a minor accident, it may feel difficult to decide whether you should pay for the damage repair services out of your pocket or not. You might think this is the exact reason why you bought car insurance in the first place. Still, you can’t resist feeling dubious about it.
Yes, you purchased car insurance online to avoid financial burden. However, not filing an insurance claim for small repair work has its own benefits.
You need to know these four things before you decide to file a claim:
Table of Contents
Claim for Dents and Scratches
1. Considering the Quantum of Loss is Important
While filing a claim, you must check the financial loss that would occur to you if you pay for the car damage repair on your own.
What if your car just got a small dent and the neighborhood mechanic can fix it just for a few hundred rupees? Isn’t that easier?
Going through the process of insurance claim settlement just because you want to save a few hundred rupees is not a wise decision. Avoid spending your time and effort into the insurance claim process by simply getting it repaired yourself.
2. Chosen Deductible Matters
A deductible is an amount you have agreed to pay in an insurance claim while buying the car insurance policy online. In general, it is around ten percent of the total amount to be settled. However, there is a provision to opt for higher deductibles, which ultimately lowers the insurance premium.
Now apply this to your case. Imagine that your car has got big dents that need to be fixed. The total damage repair bill is expected to be around twenty thousand rupees, and you chose to pay forty percent deductible. In this case, you will have to spend eight thousand rupees from your pocket while the insurer will pay the rest of it. Here, it makes sense to file a claim as the total repair bill does not equal a small amount.
However, if the expected repair bill amount is small and you have chosen 10% deductible, filing a claim is not a great idea.
3. Your NCB Will Get Affected
As a part of insurance terminology, NCB or No Claim Bonus is the amount you get as a reward for not filing a claim during the policy tenure. The best thing about it is that it gets accumulated if not used over a few consecutive years. However, you should also know that even a single claim during the policy tenure can result in the loss of your NCB.
So, it is always a good decision to avoid filing a claim for small dents and scratches on your car.
4. Your Claim History Determines Car Insurance Premium
Filing car insurance claims frequently using online or offline mode does have its impact on your claim history. One or two claims in a year do not generally make much of a difference. However, insurers may increase the premium for you on seeing the higher risk associated with your claim history. They may even deny renewing your policy because of the same.
Therefore, a good rule is only to file a claim in situations that need you to spend large sums of money on repair.