Driving your own car is a dream come true – but it all quickly becomes a nightmare if your car meets with an accident or is damaged due to another vehicle or an act of nature. After being upset initially, you console yourself that you can get the repairs done using your car insurance. After all, that’s what it’s for, right?
Wrong. We outline 3 situations where you should NOT claim car insurance for damage repair, and why:
#1 If the repair costs are lower than your deductible(s).
As a car insurance user, you are aware that there is a certain component of the claim that you must voluntarily and mandatorily pay. This component is known as the ‘deductible’ and it varies from policy to policy. It is also computed based on the age of the car, the package of benefits added to the policy, etc. So if the cost of the repair is lower than the deductible, the insurance provider will not pay any money towards your claim because your deductible covers all of it. Thus, you end up paying out of pocket and raise a claim that is not even paid back to you.
#2 If you want to accumulate a good NCB (No Claim Bonus).
Every car insurance policy has an NCB that accumulates for every year that you do not file a claim for insurance. So if the repairs needed are minor, it is better to not file a claim at all and contribute towards the NCB. Suppose there is a dent on the passenger door or the mirrors need replacement and will cost only about Rs 3,000, you can pay the money out of your pocket instead of raising a claim and getting a reduced NCB.
#3 If a third party is willing to pay for damages.
You might be the safest driver on the road, but other drivers’ skills and safety measures cannot be spoken for. Some other vehicle might bump into yours and cause significant damage. If the other car owner is willing to pay for the damages (he or she will mostly do so from their own car insurance), then why raise a claim against your own policy?
We hope this article was useful to you. Do tell us your thoughts in the comments. If you want to know more information about how to enhance your car insurance with the right add-on covers, we recommend this article.
(Featured image courtesy https://voi.id/en/economy/204347)