Insurance providers use intricate estimation values to determine the car insurance premium you pay. A layman does not entirely understand the calculations. But most of us know various actions that can lead to higher insurance rates or even the entire cancelation of your insurance policy. If you file too many claims, then your insurance premium can go up while the coverage might also be dropped.
When you find a small dent on your car, bump your vehicle, or break your wing mirror while parking your vehicle, the first thing that comes to your mind is- Thank God! My car is covered! But don't you consider claiming small scratches or dent can be heavy on your pocket instead. It's not always the ideal move to register a claim after a small dent or bump. Let's have a look at a few situations where not filing a car insurance claim is probably the best thing you should do.
When Not To File a Claim
Unfortunately, no set rule determines whether you should make a car insurance claim or not. Before making a claim, why you had taken a car insurance policy? Had you taken it for dent correction, then go ahead make a claim. If you bought the plan to get coverage against unaffordable, crippling costs of accidents and other unfortunate incidences, then you should reconsider your decision.
For example, if you back into a pole and damage your vehicle, you might want to pay for the repairs yourself and avoid taking a toll on your accumulated NCB percent. If the car damages cost you anything under Rs. 5000, then you should not consider filing a claim.
But, if you get into an accident with another car and the damage is less than Rs. 5000, you should try to convince the other driver not to report the incident. It is mandated by law to exchange insurance information after an accident. But if you can manage to pay for the car repairs out of your pocket, it might save you money in the long run. You should estimate the repair costs as it can be tricky, and you would want to file a claim within the given period if you misjudged or underestimated the repair costs.
On the other hand, if you are involved in an accident and the other driver is at fault, you get into a trickier situation. If you think that the other driver will pay for your repairs, you might not file a claim. Remember one thing; even if you are not at fault in an accident, filing a claim can increase your insurance costs.
When to File A Claim
There are several incidents where it can get risky not to file a claim. Suppose, if the other driver suffered an injury in the accident, you should definitely file a claim. Similarly, you won't have a choice as the other driver will definitely insist on registering a claim with his insurer. If you or your passenger suffered an injury, you would probably file a claim as well. Medical expenses associated with car accidents can be unpredictable and can immediately get out of hand.
Filing a claim can result in car insurance premium hikes between 20-40%. To save you from years of augmented costs after a car accident, be sure to invest earnest attention to whether filing a claim is the right decision.