If your car lands in a minor accident that damages your four-wheeler, you won’t have to file a claim. Instead, you’ll have to pay for the damage out of your own pocket. You don’t tell your car policy insurance company about the accident because you think your premiums will go up if you do. Is this the right way to do it?
If your car was the only one involved in a small accident, it makes sense not to tell your insurance company. Say, for example, that you hit a pole with your car and hurt the back end. But if a third party was hurt, met their demise, or had their property damaged, the accident would not have been considered “minor” in the first place. This is when you will have to tell the insurance company about the case. Let’s look at this in more depth.
Claims made on third-party liability insurance
If your car was parked in the neighbourhood and a neighbour’s car hit it, making an ugly dent, what would you do? No matter what kind of damage you did, you can file a claim with the third-party liability insurance of your neighbour. In this case, it’s clear that you’re not the one who caused the accident. By making a claim on third-party liability insurance, you also don’t make a claim on your own policy. In this third-party liability claim, the cost of fixing the damage should be covered by your neighbour’s insurance company. *
We all know that making a claim on a third-party liability car policy is hard and time-consuming. But in situations like the ones above, it’s best to go with a third-party liability claim. You should know that you have to file an FIR at the nearest police station after something like this happens. This will help your case when the third-party liability claim is approved.
Protecting your no-claim bonus
A no-claim bonus (NCB) is a benefit given to a car owner who does not make a claim during the policy year. This benefit means that the car insurance premium for the next year will be more affordable because of it. If a car owner doesn’t make a claim for 5 years in a row, he or she can get a concession on the renewal premium of up to 50%. But if the owner of the car makes a claim on the policy after that, the NCB will go back to what it was before. *
Deductibles
Another thing you should think about is the amount of your deductible or excess. When you make a claim on your car insurance, you will have to pay a certain amount that depends on the size of the car’s engine. This is what is called the mandatory deductible. Before you buy car insurance online, you can also choose a voluntary deductible when you start your policy, which is another excess. At the time of a claim, you will have to pay the amount of the voluntary deductible. After you pay the deductible, the insurance company will pay you the rest of the claim amount. *
So, do the following before making a claim on your car insurance:
- Add up the overpayments you’ll have to make and the NCB you’ll lose. This is the same as what you lost in the accident. *
- Check to see if this loss is bigger than the claim amount. If that’s the case, it makes sense for you to pay for the damage. If not, you can go ahead and make a claim.
Check your car insurance app if you need clarification on anything.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.