3 times when it is better not to make a claim against your car insurance

Along with the growing percentage of vehicles in India, the importance of road safety has also increased. This is why getting motor insurance has been stressed up on; it keeps motor vehicle users protected from financial damages that might arise after an accident or mishap. Having a third party car insurance is regarded as a compulsory measure by the Law and using an uninsured vehicle is punishable.

Motor insurances work as a tool when one is affected financially by an accident or other man-made or natural calamity. Essentially, insurance is taken to get a cover in times of vehicular damages. However, it is not always suggested to claim the insurance amount. It’s confusing but believe it or not, there are occasions when it is better not to make a claim against your insurance! Here are 3 of these occasions.

1.       In case of minor damages

It goes without saying, accidents lead to vehicular damages. However, in many cases, the damages to the vehicle are not major and can be covered by the owner. Wondering why you should cover the damages on your own when you can have the insurance company pay the bills instead?

Well, this is because, when you claim motor insurance for small damages, you will lose out on your No Claim Bonus (NCB) in the process. Considering that your NCB could as much as 50%, forfeiting it to cover some minor damages will not make sense! So always remember, in cases of normal fender benders, making a claim is not the best idea!

2.       If claim amount is similar to deductible amount.

When one makes a claim, they have to pay a compulsory deductible - this could be as much as Rs. 2,000 depending on the cubic capacity of your car’s engine. If you have opted for a voluntary deductible, it will only drive up the out of pocket expense in case of a claim. Therefore, before you make a claim, you should keep in mind the deductibles that have to be paid. It doesn’t make sense to make a claim if repair costs are lower than or just about exceed the deductible amount!

3.       In case motorists reach a consensus on their own

Even if the repair costs are more than your NCB and the deductible of your car insurancepolicy, it still makes sense to hold back on making a claim if you can reach a consensus with the other motorists involved. In this case, you’ll avoid losing out on your NCB and paying any deductibles. At the most you will have to pay for the other party’s damages as well.

If you’re one who would rather make a claim, it makes sense to tailor your plan accordingly. You could include the NCB protector add-on to ensure that your hard earned discounts stay intact despite making a claim. You could also opt out of a voluntary deductible to keep out of pocket expenses at a minimal in case of an accident. Hope this has been helpful and that you never have to fall into a situation wherein you feel the need to make a claim. Good luck and drive safe!