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When Can I Make Car Insurance Claims?

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Car-Insurance

It is a human tendency that whenever we meet with an accident, whether it is major or minor, we think about car insurance and can we move towards claiming it. Claiming your car insurance is a choice, that completely depends on you. Yes, it is a tough decision to make. You must make proper calculations and also keep some basic facts in mind before claiming your car insurance.

Car insurance is essential for covering risks and damages. According to the Motor Vehicle Act, you must have a third-party insurance policy. Thus, if you have a car, you should also have a valid car insurance policy. However, if you think that the risk of owning a car yourself is higher, then a car insurance policy can be very expensive for you. The premium amount of car insurance also fluctuates according to the adverse claim history. This is why it is vital for you as a policyholder to be more cautious and careful in your approach while making the claim.

When you meet with an accident, do not directly ask for a claim, rather, assess the situation by yourself first. Always check the magnitude of the loss, deductibles, impact on the no-claim bonus and future premium. Once you are satisfied, only then go ahead and make a claim. Claiming your car insurance can affect the no-claim bonus, future premium cost and also the ability to get insurance later.

There are a few aspects, that you must consider before claiming your car insurance.

Keep an eye on the NCB (no-claim bonus)

No-claim bonus is nothing but the discount offered by the insurance company to the insured during the renewal of premium if you have a claim-free year. Even if you make a single claim, there are chances that the NCB drops down to zero. Therefore, if it’s a small accident and the NCB amount is more than the repair cost, then the insured is advised, to not make a claim. The NCB is available for the insured only on the damaged portion of the premium and not on the liability part.

Deductibles

If you are insured by a car insurance policy, then you have to pay the deductible amount from your pocket. When you make a claim, the insurance company will pay out the repair cost after reducing the deductible amount and also the amount of depreciation. So, claiming a small amount will turn out to be a loss for you. You will gain very little from the claim and also lose the NCB on your insurance.

Third-Party Claim

If your car gets damaged due to some other person, then you can prove that it is the third-party that is at fault and then claim third party insurance from them. By doing so, you will not lose control over your NCB, and your insurance will also be intact.

Before you make a car insurance policy, always have control over the above factors. If you are looking out for a new car insurance policy or want to renew your car insurance, you can purchase it online directly from Future Generali.

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