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When Not To Claim Car Insurance?

Written by Sharad Bajaj
Updated On Oct 15, 20232 min read
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It is not always right to make a claim, either if you find a broken mirror of your car or you hit it somewhere. Know when not to claim car insurance.

A car insurance claim is your first defense against possible financial liabilities coming from any damage endured by your vehicle, or the loss of your vehicle through burglary or man-made/natural causes. But sometimes, raising a claim on your insurance policy may not be the best thing to do. While avoiding the insurance can cost you money, the long-term advantages certainly weigh in the favor of not raising a claim button. In short, small scratches/dents on your car’s surface do not need a car insurance claim. It is best not to claim car insurance in such a scenario, as you may lose a lot of money.

When Not To Claim Car Insurance?

When Should I Not To Claim Car Insurance?

In the following scenarios, it is wise to not file for claim insurance:

  • When Third Party Gives Repair Costs

If your car met with an accident and it is another driver’s fault, then you can file a third-party insurance claim. You will have to file an FIR with the local police and get the charge sheet. If you can establish that you are not responsible for the mishap and have the payment records towards repairs, the possibilities are that your third-party claim will be accepted.

  • Minor Repairs

A broken headlight, a scratch, minor paint job, mirror damage, etc. are uncomplicated problems that can be sorted out quickly and with little financial inputs. These must be sorted without involving the insurer. Your insurance company links huge implications to the number of claims you make. The lesser the claims, the simpler it is for the insurer to denote you as an accountable driver and all the related metrics will work in your support. Moreover, the policy premium amounts will not vary and remain steady and knowable.

  • When You Want To Avoid Paying Deductibles

At the time of a car insurance claim, you will need to mandatorily pay a precise amount that depends on the engine capacity of the car. There is also the voluntary deductible which you choose at the time of policy buying. You will pay this voluntary deductible when making a claim. After you pay the deductible the insurer will give you the residual claim amount.

Thus, before raising a claim under car insurance:

1. Add the excesses you will pay with the no claim bonus (NCB) you stand to lose. This communicates to your loss from the mishap.

2. Find out if this loss is more than the actual claim. If it is, then you should pay for the damages.

Your car insurance company rewards you with an NCB when you do not raise a claim through a particular time duration.

Conclusion

Insurance companies check your claim history to find how much you could cost them, and the more claims you make, the riskier they will suppose you to be. Moreover, filing claims regularly will increase your costs. Thus, it is better to know when it is the right time to call for a claim and when not.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Sharad Bajaj
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 Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.

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