When Should You Skip Filing a Car Insurance Claim?

Car insurance is undoubtedly your go-to solution for any case of repairs or accident to your car. While the essence of buying an insurance policy is to safeguard against financial losses, it isn’t always necessary that you make an insurance claim.

Sometimes the most obvious option may not be the best. There are a few scenarios when claiming motor insurance may not prove to be fruitful. Instead, it can have long term impacts.

Whether you should make an application for claim largely depends on these four factors – the amount of loss, its impact on NCB, the deductibles of your policy and impact on future premiums. Let’s understand them further.

Quantum of loss

The amount of loss or damage to your vehicle should determine whether to file a claim under your four wheeler insurance policy. If the loss is minimal or something that you can easily afford, skipping on making a claim would be a prudent decision.

Impact on NCB

NCB or no claim bonus is a concession in renewal premium offered by your insurer for not making any claim during the policy tenure. The percentage of NCB starts at 20% and goes all the way up to 50% for consecutive claim-free policy years. Now if you make a single claim, this renewal benefit is lost, and you have to pay the full price at renewal. To avoid these increased premiums, you must carefully evaluate the NCB benefits vis-a-vis the benefit of filing a claim.

Deductible of your policy

All insurance policies specify the amount of compulsory deductible that needs to be borne by you, the policyholder. When making a claim, the insurance coverage kicks in only after you pay the deductible amount. Thus, if the deductible to your policy is equivalent to the cost of repairs, you should skip filing an insurance claim. It will lead to you requiring payment for deductible as well as a loss of NCB benefits at renewal date.

Say, for example, your policy has ₹5,000 as the compulsory deductible, and the NCB benefits are worth ₹8,000. Now any claim below ₹13,000 would not be a prudent choice of the insurance claim. You will lose the NCB benefits as well as be required to pay the deductible before your insurance coverage kicks in.




Impact on future premiums

Make note that making frequent insurance claims does not impact your claim history. The increase in premium is primarily based on the abovementioned factors and under some other possible scenarios such as price hike in third party premiums or addition of modifications to your car, which increase your IDV. However, it is critical to follow all road safety regulations to prevent yourself from getting into any unfortunate incident. Hence, if you feel the need to make a claim under a certain scenario then go for it after weighing out its long term impact and the severity of the incident.

Keep in mind the above points and remember when making your next insurance claim. Not all expenses need to be claimed with your insurer. Some costs can be paid on your account to enjoy continued benefits from your insurance policy. Whether you buy comprehensive or third party car insurance online, these are some handy tips that can not only help you save premium, but also enjoy continued benefits.