The smaller the scratch on your car, the bigger the blow! You'll be surprised to learn these car insurance facts..

Car Insurance Claim: Nowadays, almost every car owner insures their vehicle. The government has also made third-party insurance mandatory. But when it comes to minor scratches, dents, or minor accidents, people don't understand whether they should file an insurance claim. This is the biggest question: is it always right to use insurance, or does it cause more harm?

What is the impact of making an insurance claim?

Whenever you use car insurance, it directly impacts your No Claim Bonus (NCB). The NCB is the discount you receive each year upon policy renewal if you haven't filed a claim that year. This discount gradually increases and can reach up to 50% in 5 years.

But if you file a claim even for a minor scratch, your NCB will be lost. This means you'll have to pay a higher premium next time, potentially leading to long-term losses.

Why not claim for minor scratches?

Suppose your car gets a minor scratch in a parking lot and the repair cost is ₹3,000. If you file a claim, the company will only pay the amount after deducting the deductible (i.e., the mandatory amount you pay). Furthermore, your NCB will also be waived.

In the long run, making small claims will only result in losses. Therefore, it's better to bear the cost of minor scratches or dents yourself.

When to use insurance?

Insurance is truly beneficial only when the car suffers significant damage or the repair cost is substantial. For example, if the car is involved in an accident and costs lakhs of rupees. If a third party, i.e., another vehicle or person, is harmed. If the engine, body, or expensive parts need to be repaired or replaced. In such cases, filing a claim is absolutely appropriate.

What Experts Say

Automobile experts believe that insurance policies should be reserved for major accidents and significant expenses. Claiming on minor scratches or minor dents can lead to significant losses in the future.

Use insurance smartly?

Always read the policy terms carefully.

Understand the deductible amount and decide whether to claim accordingly.

Avoid claiming for minor repairs.

Try to make the most of NCB for the long term.

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