Sometimes, an option that looks obvious might not be productive, which is the case with car insurance claims. When your vehicle gets involved in an accident, you decide to raise a claim. This is because you have paid the best premiums and done car insurance renewal as well on time. Such cases are the best time to use. But there are times raising four-wheeler insurance claims is not that of a productive solution. This is because it affects the premiums.
So, think before making a claim, review the scenario closely, and then derive the conclusion. Consider the following factors before making car insurance policy claims:
Depreciation
Cars have depreciating values associated. The reason is the daily wear and tear every vehicle faces. This way, the value of the car decreases over time. Consecutively, the value of the parts also depreciates. Hence, the insurer does not compensate entirely if it is a damaged part. The insurer does sobased on the terms and conditions.
No Claim Bonus
The insurer offers a discount at the time of the four-wheeler insurance renewal of your comprehensive policy. This is if you have not raised any claim during the previous year of the plan. This is a reward that insurance companies provide for good driving skills and not raising a claim for the entire tenure. Called as No Claim Bonus, it is incremental and becomes zero if you raise a claim. The NCB raises to as high as 50% if you meet the criteria consecutively for five years.
Deductibles
In the car policy, there are two kinds of deductibles –voluntary and compulsory. You need to specify a fixed amount from your pocket during the claim settlement process in such situations. Consider it as your minimal contribution. This way, the settlement is about receiving money, and a component wherein you spend more.
When to claim car insurance?
When you decide to make a claim, factor in the depreciation and evaluate it with your NCB, which you might lose otherwise. Remember the deductibles as well. After doing such calculations, you will know whether to raise a claim or no.
Renewing insurance policy? Stop and review!
You can make a claim only when it is not expired, and for keeping this active, you need to do the renewal regularly. However, at such times, it is best to review than renew. Irrespective of the online car insurance plans, review the inclusions of your policy before renewal. You also can opt for a different insurer to get the best policy at the time of renewal.
Be aware of claim types
It is sometimes beneficial to make claims. Insurers offer claims of two types – reimbursement and cashless facility. Now, insurers have tie-ups with specific network garages across India. This makes the claim settlement process quicker. But it is im possible to take it to a network garage always, and if you do it from the non-network garage, they are called unauthorised garages. But when it comes to unauthorised garages, the reimbursement factor enters.
When you decide to do reimbursement, make sure to survey the damage. The vehicle gets repaired only after the consent of the insurer. Once the surveyor feels everything is fine, the repair happens, and the reimbursement takes place.