Claiming a Car Insurance Policy - Know When to Do and When to Avoid it

Car insurance can be very beneficial in case of any damage caused to your car or damage caused by theft, accident, or other natural or man-made calamities. But there are situations when filing a claim with your insurance company may not be the best action to take. Although foregoing car insurance may cost you money, the benefits are undoubtedly in your favour in the long run.

In other words, minor scratches and scuffs on the surface of your car do not require filing an insurance claim, and it is better to avoid claiming car insurance in such situations.

When To Avoid Claiming Your Car Insurance?

We suggest you avoid filing a claim for car insurance under the following circumstances:

• Minor Repairs

Simple problems like a broken headlight, a scratch, a minor paint job, mirror damage, and more can be fixed quickly and cost-effectively. It would be best if you did not involve your insurer in these minor problems. The amount of claims you file significantly affects your accountability as a driver and overall related metric. Fewer claims mean it will be easier for insurance to identify you as a responsible driver, and all associated metrics will work in your favour. Moreover, the policy premium will remain steady and unchangeable.

• When Deductibles are Higher

A deductible is an amount you will have to pay yourself, and the insurance company will pay the remaining cost during the claim per the policy's terms and conditions. In car insurance, there are two types of deductibles, i.e. compulsory and voluntary. Per the laws of the Insurance Regulatory and Development Authority of India (IRDAI), the mandatory deductible component for cars below 1500cc is INR 1K. At the same time, for above 1500cc, it is INR 2K (subject to change). This is because you must pay a voluntary and compulsory deductible if you file a claim. And, if the cost of repairs is less than the deductible, it is not suggested to raise a claim because it makes you lose no claim bonus.

• Mutual Settlement

If your car is in an accident due to the fault of another driver, and the vehicle owner is ready to pay for the damages, then you should not claim, as claim settlement takes time and it depends on the severity of the damage. Is. In addition, you need to follow certain steps, such as informing your insurer and submitting a First Information Report (FIR), etc. In this situation, it may be wise to resolve the conflict without filing a claim.

Things To Remember While Filing a Claim Under Car Insurance

Below mentioned are things that you should remember while filing a claim under car insurance:

• Lose of No Claim Bonus (NCB)
• The insurance company rewards you if you don't raise a claim
• Be honest about the claim

Conclusion

Insurance companies look at your claim history to determine how much you can cost them, and the more claims you file, the riskier they think you are. Additionally, filing claims frequently will increase your cost. Therefore, it is better to know when it is appropriate to seek a claim and when it is not.