It is important as a car owner to know whether you can claim insurance for car scratches in India and its implications.
What Type of Policy Allows You to Claim Insurance for Scratches?
Most popular car insurance providers do provide coverage for car scratches. However, third-party insurance will not cover the scratches and dents on your car. This type of policy is basic and compulsory for every car owner.
Only a comprehensive car insurance policy will allow you to claim insurance for car scratches. This type of insurance covers the damage incurred on your vehicle, as well as any third-party claims. So, consider the type of car insurance policy you have before raising a claim.
Some car insurance providers are HDFC ERGO General Insurance, Royal Sundaram General Insurance, Tata AIG General Insurance, and Bajaj Alliance General Insurance, amongst others. The Park+ app is an easy way to find the best car insurance plan to suit your needs.
The Implications of Claiming Insurance for Car Scratches
It is easy to claim insurance for car scratches if you have the right insurance policy. However, sometimes it may be prudent not to raise a claim and repair the scratches at your own expense.
You may consider the following before raising a claim.
No Claim Bonus (NCB): NCB is a bonus or rewards that a policyholder gets for not raising any claim of insurance during a policy year. NCB rewards get accumulated and can be availed to get huge discounts on premiums when you renew your policy. If you claim insurance for car scratches, it may cancel out the NCB reward. It may be wiser and cheaper to pay for small dents and scratches on your own to avoid losing out on the NCB discount and pay a lower premium when you renew your policy.
Deductibles: If you purchase a car insurance policy online you may have agreed to pay some amount of the insured sum when a claim is settled, or a deductible. The remaining amount of the claim will be paid by your insurance company. As a result, you will be paying a part of the damage to your car. If you have opted for a higher deductible, you may have to pay a large amount. This is not really worth it. Further, you will lose out on your NCB award for a minor claim of scratches. Check the amount of deductible you will pay and whether it is beneficial before deciding to claim insurance for car scratches.
Impact on Premium: Repeated insurance claims for car scratches under your insurance policy will affect your claim history. This is very important in deciding your premium amount for the future. Multiple claims for minor incidents may result in you having to pay a higher insurance premium.
Whether or not to claim insurance for car scratches is an individual�s decision. Every claim is registered by the car insurance company and may negatively impact future premiums. Minor claims may affect your NCB and result in increased premium rates. So, consider all aspects before you claim insurance for car scratches.