You can file a claim for car scratches in India. However, there are certain implications to claiming your car insurance for minor damages. Let’s explore how it can impact your car insurance, premiums, NCBs, and more.
Is it feasible to file a claim for car scratches?
Sometimes, your car may encounter unexpected incidents like small dents or scratches. When this happens, you might wonder if your car insurance will cover these minor damages. And if it does, is it a good idea to file a claim for car scratches?
Car insurance covers various unforeseen damages your car might experience on the road. Comprehensive car insurance can provide coverage, whether it’s a major accident or just a few scratches.
However, before you file an insurance claim for car scratches, it’s worth considering whether handling the repair costs yourself would be better. Claiming small scratches could potentially lead to higher car insurance premiums in the future.
Do car insurance policies cover car scratches?
When it comes to car insurance, coverage can differ depending on the insurance company and the policy you choose. To ensure you know the policy’s inclusions and exclusions, it’s crucial to read the policy document carefully. Paying attention to the details will help avoid any potential claim rejections. While many popular insurers cover scratches, it’s important to note that your claim will get denied if you only have third-party liability insurance without a standalone damage cover.
Comprehensive and standalone own-damage insurance usually covers more significant incidents, such as theft, irreparable damage, and loss caused by fire. So, if you want protection against these events, opting for a comprehensive insurance policy that includes own-damage coverage and cashless car insurance is recommended. Remember, understanding your insurance coverage is essential for peace of mind on the road.
Will a car scratch impact your insurance premiums?
Your claim history significantly impacts the premium amount of your car insurance policy. If you’ve made multiple claims in the past, it suggests to the insurer that you may have poor driving skills and are likely to make more costly claims in the future. To protect themselves financially, the insurer will charge you higher premiums on car insurance.
Keep in mind that raising multiple claims affects not only your No Claim Bonus (NCB) but also your overall claim history. It is a crucial factor in determining how much you’ll have to pay for your car insurance in the future. Even for minor repairs, if you file multiple claims, you may pay higher premiums for your car insurance.
The increase in your car insurance premiums mainly depends on the type of claims you make. If most of your claims are due to your fault and occur frequently, your insurer will likely raise your car insurance premium because they see you as a high-risk policyholder.
However, you can avoid this situation by paying for minor repairs out of your pocket instead of making frequent insurance claims for small scratches on your car.
Will a car scratch impact your deductibles?
When you buy car insurance online, you may agree to pay a portion of the insured amount when making a claim, lowering your premium amount. It is called a deductible. The insurance company will pay the remaining amount of the claim. It means that you will bear part of the cost of the damages to your car.
For example, if your car has minor dents that cost INR 5,000 and you file a claim, you must pay the deductible (i.e., the fixed percentage as stated in your policy), and the insurance company will pay the remaining amount. However, choosing a higher deductible will result in a larger payment from your side, which may not be practical.
In addition, if you claim for a minor repair like car scratches, you will not receive a No Claim Bonus (NCB) reward. So, it’s important to calculate in advance the deductible amount you would have to pay for such small repairs and determine if it benefits you.
Will a car scratch impact your NCBs?
No Claim Bonus (NCB) is a special benefit for not filing a claim throughout the policy year. It’s a discount given when you renew your policy, based on a percentage. Starting at 20% after the first year without claims, it can increase to 50% if you go five consecutive years without making a claim.
Repairing a scratch on your car is relatively inexpensive. However, using your car insurance policy to cover this minor expense would mean losing the discount car accumulated through your NCB.
NCB accumulates over time and can be used to lower your premium when renewing your car insurance policy. Therefore, it’s crucial to think about the impact of raising a car scratch insurance claim on your existing NCB reward.
