However, her friend put her in a dilemma by advising her to avoid making any claim and pay the repair amount out of her pocket as it wouldn't cost her much.
Priyanka wasn’t quite convinced as her car was fully insured and she felt that the best thing was to make a claim. However, was still skeptical as she was informed that raising a claim would hurt her no-claim bonus, claim history, as well as the future premium amount.
Irrespective of the type of cover we have, third party car insurance or a comprehensive one, this kind of dilemma is faced by many of us landing us in a situation where it gets difficult to settle on whether we should make a car insurance claim or not.
This article will help us make sensible choices when it comes to choosing between claiming insurance or skipping it.
As per industry experts, there is no restriction to the number of claims you can file under your car insurance policy in a year. In cases of frequent damage to your vehicle due to accidents, you can file as many claims as you want.
However, please note that your insurance provider can add such a clause in your policy while renewing it if the claims are too many in any given financial year. So, ensure reading your policy wordings thoroughly while renewing it.
There is no hard and fast rule when it comes to the number of claims that you can register. Though, it is always beneficial for an individual to do prior calculations and keep in mind the fundamentals before deciding whether to raise a car insurance claim or not.
However, there can be certain exceptions where the number of claims you can make in your car insurance is limited.
For example: In the case of a zero depreciation add-on cover, the number of times you can claim during a year is restricted and its count can vary from one insurer to the other.
It is generally not advised to claim for small damages such as minor dents, scratches, or broken rear-view mirrors. It is better to file claims for damages that are severe, and require a considerable amount of repair or even replacement of car parts.
To assess this, before filing for a car insurance claim, you should comprehensively assess factors such as the actual amount of loss/damage to the vehicle, the number of applicable deductibles in the insurance policy as well as the impact the claim will make on the no claim bonus.
Even though there are not any restrictions on the number of claims that you can file in a financial year, frequent claims do put a negative impact on your car insurance policy. Here are some of the things you should keep in mind and try to avoid filing multiple claims in a year:
Impact on No Claim Bonus(NCB): As the name suggests, a no claim bonus is a percentage of discount you get on the premium that you pay for not making any insurance claim during the previous year/period of your policy. This percentage keeps on increasing every consecutive year when you do not claim your car insurance policy. The amount can go up to as much as 50% if you have 5 consecutive claim-free years.
Making multiple claims in a policy period brings you no claim bonus back to zero and you would have to start again by paying a higher premium amount.
Higher Premium Every Year: If you file multiple car insurance claims or have a similar history, the amount of premium you would have to pay in the future gets severely impacted. This happens because an adverse history of filing claims suggests a higher risk, which directly impacts the risk of insurance and in turn, the premium.
Hence, the next time when you are thinking of filing a claim more than once, get ready to pay a much higher premium for renewing your policy in the future.
Following are a couple of standard rules you can follow to make a sensible choice when filing for a car insurance claim:
With increasing digital adoption and the introduction of cashless claims, filing an insurance claim for your damaged vehicle is an extremely simple process nowadays.
Car insurance ensures protection against unplanned financial liabilities in the case of an unfortunate accident. In such incidents, you can file multiple claims during the policy period; however, it also comes with its drawbacks, which, if not used wisely, can make you suffer more losses than being financially protected.
Make sure you always read the terms and conditions of your car insurance policy as well as file your claims judiciously.
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#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.