As per the Motor Vehicles Act it is mandatory for every car owner in India to insure his or her vehicle with at least a third-party liability cover. There are two kinds of insurance policies available in India, third-party liability cover and comprehensive car insurance policy. A third-party liability car insurance plan covers third-party liabilities alone while a comprehensive car insurance covers third-party liabilities as well as own damage liabilities incurred posta mishap. Having a car insurance will protect you against unforeseen liabilities at the time of a mishap and relieve you of unnecessary financial stress at the time.
There will be times, when raising a claim will be unnecessary.it is necessary that you know when to raise a claim and when you shouldn’t. If you raise claim only for the right situation, you can actually save on your car insurance. Analyse the situation you are in before going ahead and raising a claim. Given below are circumstances that you should avoid raising a claim for:
Small damages such as scratches, minor paint jobs, boken headlights, etc. can be fixed easily and tend to be inexpensive. In such cases, raising a claim will be futile for you financially and otherwise. When you raise a claim, you will have to pay the value of depreciation on car parts and deductibles which would be more than the cost of minor repairs. Also if you keep raising claims, it will affect your driving record and the insurers might hesitate to insurer your vehicle.
Not raising a claim for minor damages such as scratches, minor paint jobs, boken headlights, etc. will ensure that you don’t lose your No Claim Bonuses. No Claim Bonus is a discount on the insurance premium awarded by the insurer to the insured for every claim-free year. If you raise a claim, you will lose all your accumulated No Claim Bonuses.
Therefore, not just having a car insurance policy but also knowing how and when to raise a claim will help save on your car insurance nd offer the best benefits of the policy to full extent.