Is it Worth Filing Car Insurance Claims for Minor Car Scratches in India?
Driving your four-wheeler always comes with the possibility of occasional damages such as dents or scratches. So, the first question that would come up is - ‘Does my car insurance cover scratches?’. If yes, then can I claim insurance for car scratches without it affecting my insurance policy? The answer to that is much more complicated to be summed up in a single sentence. So, let’s deep dive into the scope of your car insurance coverage and the ifs and buts of raising a minor insurance claim.
Does Car Insurance Cover Minor Scratches or Dents?
The coverage of your four-wheeler insurance policy completely depends on the type of policy you have purchased. In case you have opted for the basic third-party cover, then you must know that your plan only covers third-party liabilities. Hence, no insurance claims for car dents shall be accepted under this policy.
However, the scope of your insurance coverage increases with a comprehensive car insurance plan. Not only does it include own damage incurred by your vehicle but also covers any third-party losses. You can easily raise an insurance claim for scratches on your car without a doubt!
Does Car Insurance Claims for Minor Damages Affect NCB?
Now that you know which type of car insurance covers minor damages, the next aspect you should consider is the No Claim Bonus or NCB. As an owner-driver, you might be aware that NCB is a reward that you can earn by not making any claims during the policy period. By becoming eligible for such a bonus, you can avail a cost-effective insurance renewal premium where the NCB keeps increasing for subsequent claim-free years.
So, naturally, raising insurance claims for car dents or scratches will not make you eligible for an NCB reward. If you already have earned a bonus in the previous policy term, filing a car dent insurance claim can set your bonus back to nil. Instead, you could pay for minor damages from your own pocket and continue enjoying a claim-free year to avail a reward during renewal!
Will Car Insurance Claims for Minor Damages Impact Deductibles?
Deductibles in car insurance are a part of the claim amount that you must cover before the insurance company pays the remaining sum. In case of an insurance claim for scratches or dents on the car, the deductible could almost be equal to the repair expenses. This increases the financial burden on you and gives you no relief in spite of raising a car insurance claim.
Let’s take an example to understand the impact of deductibles on minor insurance claims. If the repair expenses for damage to the wing mirror or car body are equal to ₹2,000 and the deductible is ₹3,000, then the insurer will only pay ₹1,000. You will end up covering the majority of the claim amount and lose the NCB reward as well!
Will Car Insurance Claims for Minor Damages Affect Premiums?
Although making minor car insurance claims can lead you to lose the NCB reward, that is not the only way your premium is affected. During car insurance renewal, insurance companies take your claim history into account which plays a major role in deciding the premium quote. Raising too many insurance claims can lead to a higher renewal premium and isn’t ideal if you want to save up. Hence, it is advised to cover only minor repair expenses from your own pocket. If you do not incur any major accidental damage during the policy term, you shall be eligible for a budget-friendly premium price!
With this, you must have learnt the drawbacks of filing an insurance claim for scratches or dents on cars. Not only do minor claims impact your No Claim Bonus but also lead to an increase in premium rates. Instead, you can save up your car insurance claims for major damage or loss incurred due to a mishap. Comprehensive car insurance easily compensates for accidental loss, theft, fire, calamities and other such perils.
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