Many times our car meets with unforeseen liabilities that are trivial in nature, like minor dents or car scratches on the road. Under such a situation, the first question that crosses our minds is whether my car insurance policy will cover such minor damages or not. And if it does, whether it a good idea to file a car scratch insurance claim?
Car insurance provides coverage for multiple unforeseen damages that your car may sustain on the road. Whether it's a complete loss of the insured car or a minor mishap resulting in a few car scratches, you can get them covered under comprehensive car insurance.
However, before raising an insurance claim for scratches on your car, you must consider not raising a claim and bearing the repair expenses out of your pocket. This is because claiming for small car scratches may result in a higher premium in the future.
Here are a few things that you should consider before raising a car insurance claim for minor repairs in India:
The first and the foremost thing to consider before raising a claim for car insurance scratches is whether your existing motor insurance policy will cover it or not?
A third-party liability car insurance policy does not cover any damage other than third party liabilities, such as bodily injuries, death, or property damages. Third-party damage is not minor damage and you can claim for it under this type of insurance policy. However, when your car sustains minor damages, you cannot claim it under a third party cover.
Claiming for a minor repair is possible if you have a comprehensive car insurance policy. This policy not only covers own damages but also provides financial assistance in case of third party liabilities. Thus, you must consider the type of car policy you have before raising a scratched car insurance claim.
Another major point worth considering before raising small car insurance claims is what effect will it have on your No Claim Bonus discount. NCB is a reward that a policyholder gets for not raising a claim in a policy year. This reward gets accumulated and can be used to receive a discount on premium during policy renewal.
However, if your car has suffered small losses like a scratch or dent, making a claim can nullify your NCB reward. On the other hand, if you pay for these small repairs out of your pocket and refrain from making any claim, you can use your NCB discount and pay a lesser premium on subsequent four-wheeler policy purchases. Therefore, before raising a car scratch insurance claim, make sure to consider its impact on your existing NCB reward.
When you purchase car insurance online, you may agree to pay some amount of the sum insured at the time of claim settlement. This amount is known as a deductible. The rest of the claim amount is paid by the insurance company. Thus, it results in you bearing a part of the damages sustained by your car.
Suppose your car has sustained minor dents, which say cost Rs. 3,000, and you raised a claim for it. In such a scenario, you will be required to pay some part of these expenses say Rs. 2,000 and the rest Rs. 1,000 will be paid by your insurer. In case you opt for a higher deductible, you will end up paying a hefty, which is actually not a feasible thing to do.
Moreover, in such a situation, you will also miss your NCB reward as you have raised a claim for a minor repair under your motor insurance policy. Thus, before raising a claim for small repairs like car scratches, make sure to calculate well in advance the deductible amount you will have to pay for and whether it works in your favour or not.
Raising subsequent claims not only impacts your NCB but also your claim history. This factor plays a major role in determining the amount of premium you will pay for your car policy in future. If you raise multiple claims even for minor repairs, you may have to pay a higher motor insurance premium in future.
The increase in car insurance premiums mostly depends on the nature of claims. If under most of the claims, you are under fault and such claims are frequent, chances are that your insurer will increase your motor insurance premium as they will consider you a big liability.
However, you can avoid this scenario by paying for minor repairs from your pocket and not raising frequent insurance claim for scratches on your car.
Raising a car insurance claim for minor repairs like scratches totally depends upon you. However, before taking any decision, know that every claim you make whether small or big is recorded by your insurer and can create a negative impact on your future premiums. So, as much as possible, avoid filing an insurance claim for scratches on the car to get better coverage at a lower motor insurance cost in the future.
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