There is no rule about when you should and should not file a Car Insurance Claim . However, claiming at every minor inconvenience can ruin your no-claim bonus (NCB), which you can use as it accrued over time.
Things to consider before claiming your Car Insurance
There is no rule about when you should and should not file a Car Insurance Claim. However, understanding why filing too many claims is harmful can help you make smarter decisions — as claiming at every minor inconvenience can ruin your no-claim bonus (NCB), which you can use as it accrued over time:
• The amount of loss and its effect on NCB, deductibles, and future premiums are crucial factors that should be considered to judge whether you should file a claim.
• Add the deductibles to be paid with the NCB that you can accrue to get the overall measure of your loss. If this loss turns out to be more than the actual claim amount, you can claim without hesitation.
• It is wise to make car insurance claims for significant losses, especially those not below Rs.5,000, including severe damage that ends up being settled as a total loss car insurance claim . Claiming a minor loss may cause a lot of losses in the long run.
• In case there is the involvement of a third party in case of a massive accident or a minor inconvenience, you may claim your car insurance under the third-party liabilities . Although it is a little complicated and time-consuming, it is safe as the claim is not under your policy.
Read More: How NCB rewards no-claim history
When not to file a car insurance claim
1. In case of minor damage:
If your car suffers a minor repair, it is best not to file a claim as it would affect your no-claim bonus , which could be higher than the actual claim amount.
2. Whenever your NCB is affected, do not make a claim:
The No Claim Bonus (NCB) is a kind of advantage that car owners get for not filing any car insurance claim in a policy year and is available as a discount on future premiums. Because that benefit follows the policyholder rather than the vehicle, you can also carry your No Claim Bonus over to a new car .
3. When deductibles are higher:
When you file a car insurance claim, you must make a compulsory payment of a specific amount. This depends on the vehicle's make and is referred to as the compulsory deductible. If you claim car insurance, you will only get the balance except for the 'deductible' amount. Remember, they are also subject to depreciation.
Conclusion
Filing a claim for every minor dent or scratch makes no sense since it can harm the long-term benefits of having a Car Insurance policy since doing so might make you lose more money than you had imagined. Therefore, take measured steps only after considering all the factors in calculating the return and loss.
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