When you should and when you should not file a car insurance claim
For car owners in India, purchasing a third-party car insurance policy is mandatory. However, it is always recommended to opt for a comprehensive car insurance policy as it not only provides coverage against damage, loss, and theft of the two-wheeler but also safeguards the insured for third-party liabilities. With leading insurance companies, you can purchase Bajaj Allianz car insurance online from the comfort of your home. Though a comprehensive car insurance policy can safeguard you from the financial liabilities in case of a car accident, there are situations in which you shouldn’t file a claim. Therefore, it is essential to have a better understanding regarding when to use your insurance coverage and when to avoid filing a claim.
Let us have a look at some scenarios in which you should file a car insurance claim.
In case of an injury
If you, passengers in your car, anyone in the other party, or any pedestrians are injured in a crash, you must file a claim. Medical bills can take a toll on your savings, and not filing a claim can leave you open to litigation. if the other party happens to sue you, before you contact your insurance company, your claims representative could deny the claim altogether.
If the fault is unclear
In case of an accident that causes property damage or injury, and the fault is unclear, you should file a claim so that your insurer can represent you. In such a case, your insurance company will work with the other party’s insurer to assign responsibility and arrange payouts.
If the loss is significant
If the damage caused in an accident is significant, you must file a claim through your collision coverage or your property damage coverage. However, before filing a claim, you must compare the value of repairs to your total rate increase in your deductible. If it is cheaper to file a claim, you should go ahead with it.
If you happen to file a claim, make sure that you have all the required documents in place. Some of the most common reasons for claim rejection are mentioned below:
- Incorrect details on the application form.
- Filing a claim against an inactive car insurance policy.
- Failing to inform the insurer within a stipulated time period.
It is always advisable to seek help of a legal adviser for a hassle-free claim settlement process and to avoid any inconvenience in the later stage.
When to not file a car insurance claim
If there’s minor damage only to your own vehicle
If you damage your car a little in a minor accident, it is advisable to not file a claim. This is because in such a scenario your claim would be considered an at-fault collision claim. Due to this, your premium amount could increase over the next three years.
If the third-party damage is minimal
If there’s slight damage to a third-party in case of an accident, you might not need to involve insurance companies. In such a scenario, you may ask the other party if they will allow you to pay them for the damage out-of-pocket and resolve the matter. Also know what is third party car insurance.
Having a better understanding of whether or not to file a claim can prove to be extremely helpful and save you a significant amount of money.
Does a not-at-fault accident impact car insurance rates?
Yes, a not-at-fault collision can lead to increased insurance rates.
What is a No Claim Bonus?
Insurance providers in India offer a bonus amount to their customers for every claim-free year. This is known as No Claim Bonus.
After how long should you file a claim?
After an accident, you shouldn’t wait to contact your insurance provider. You should file a claim as early as possible.