There are many difficulties with driving in India. Among the main contributors to road accidents in the nation are bad driving habits of some drivers, open manholes, and poor road conditions. No matter how cautiously you drive, there are a number of unlucky situations, such as scratches, that are beyond your control.
Minor accidents like dents or scratches can be easily fixed without spending a lot of money. Yet, if you have comprehensive car insurance online, do small damages like dents and scratches get covered? If so, what are the consequences of making such claims? Let’s examine what is covered in car insurance.
The car insurance coverage covers vehicle scratches, right?
Depending on the insurer and the terms of the policy, car insurance coverage varies. It is essential to study the policy’s fine print to comprehend inclusions and exclusions and to prevent potential claim denials. The majority of well-known insurers cover dents. But, the insurer will reject your claim if you only have third-party liability insurance for your car and no separate own damage coverage. *
Scratches and other major occurrences like theft, permanent damage, and fire loss are normally covered by comprehensive and standalone own-damage insurance.
- Your NCB will be impacted by a car scrape.
The No Claim Bonus, or NCB, is a percentage payment for not making a claim throughout the policy year. At the time of policy renewal, it is offered as a concession on the premium amount. It begins at 20% for the first year without a claim and rises to 50% after five years without a claim. *
The least expensive repair is a scratch on your four-wheeler. You wouldn’t pay more than a few hundred or a few thousand rupees for it. You would forfeit your accrued NCB concession if you used your policy for this small amount.*
- How are your deductibles affected by a car scratch?
You can choose to pay an optional deductible when purchasing car insurance online, which can reduce your rate. A mandatory deductible amount will also be determined by the insurer. The deductible is your responsibility, and the insurance company will pay the remaining sum. *
Now imagine that your car causes a scratch to a two-wheeler in a collision. Your car needs repairs, and the garage estimates a charge of Rs 3,000. The obligatory deductible under the coverage is 15%. So, you will be responsible for paying 450 rupees out of pocket, and the insurer will cover the rest 2550 rupees.
- Does a car dent affect your insurance rate?
Claim history is one of several factors that affect the cost of your premium. The insurer will believe you have poor driving skills and are likely to file a sizeable claim soon if you have already filed multiple claims. As a result, you will pay greater rates to lessen their possible financial load.
To get the most out of your car insurance, avoid making small claims and work to earn NCB incentives. Make sure you are well aware of the process of how to claim car insurance. *
- Does it have an effect on your premium?
Increasing subsequent claims affects both your claim history and NCB. The price you will pay for your car insurance in the future will be greatly influenced by this element. You can eventually be required to pay a higher motor insurance rate if you file several claims, even for modest repairs. *
If you are at fault in the majority of claims and these claims are frequent, there is a potential that your insurer will raise your vehicle insurance rate since they will view you as a significant liability.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.