Driving in India comes with countless challenges. Poor road conditions, open manholes, and complete disregard for traffic rules by some motorists are among the leading causes of road accidents in the country. No matter how cautiously you drive, you have no control over several unfortunate incidents, including scratches.
Dents or scratches are minor incidents and fixing them does not require big money. But the question is—if you have a comprehensive car insurance policy, does it cover minor damages such as dents and scratches? If yes, then what are the implications of filing such claims? Let's look at it in detail.
Is It Viable to File Claims for Dents and Scratches on a Car?
Though car insurance policies provide coverage for all kinds of damages, including dents and scratches, it is not always advisable to file a claim for minor issues. Making claims for small mishaps and damages can result in increased premium costs and can affect non-claim bonuses. So, it is better to pay for trivial repairs from your pocket.
Are Car Scratches and Dents Covered by My Car Insurer?
Car insurance coverage varies depending on the insurer and the policy terms. It is critical to read the fine print of the policy document to understand inclusions and exclusions and avoid any possible claim rejections. Mostly, popular insurers cover scratches. However, if you have only a third-party liability insurance policy for your car, without a standalone damage cover, the insurer will deny your claim.
Incidents of scratches or any significant events such as theft, irreparable damage, and loss due to fire are typically covered by comprehensive and standalone own damage insurance.
Will It Have Any Influence on My NCB?
The NCB, or No Claim Bonus, is a percentage reward for not filing a claim during the policy year. It is given as a discount on the premium amount at the time of policy renewal. It starts at 20% for the first claim-free year and can go up to 50% if you complete five consecutive claim-free years.
A scratch on your four-wheeler requires the least amount of money to repair. It would not cost you more than a few hundred or thousands of rupees. Using your policy for this minor expense would result in the loss of your accumulated NCB discount.
Will It Have Any Impact on My Deductible?
When getting car insurance, you can choose to pay a voluntary deductible which will lower your premium. An insurer will also set a compulsory deductible amount. You are responsible for paying the deductible amount, and the insurer will cover the balance.
Now suppose your car collides with a two-wheeler, resulting in a scratch. You take your car to the garage for repairs, and the estimated bill is ₹3,000. The policy's mandatory deductible is 15%. It means you must pay ₹450 out of your pocket, and the insurer will pay the remaining ₹2,550.
Will It Impact My Monthly Premium?
Claim history is one of many variables that influence your premium amount. If you have previously filed several claims, it will give the insurer the impression that you have poor driving skills and are likely to file a significant claim soon. As a result, to offset their potential financial burden, you will be charged higher premiums.
Avoid filing minor insurance claims and try to accumulate NCB rewards to make the best of your car insurance.
FAQs
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Can I claim insurance for minor scratches on my car?
Yes, a comprehensive car insurance policy provides coverage for minor repairs. However, it is advisable to assess repair cost and their potential impact on your policy before filing a claim.
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What is the best approach for small scratches on cars?
For minor damages such as scratches, it is better to pay from your pocket to protect policy benefits such as NCB and avoid premium hikes.
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Are scratches caused by vandalism covered by insurance?
Yes, if you have a comprehensive insurance policy, damages due to vandalism are usually covered.
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Can I claim insurance for scratches caused by negligence?
No, most insurance providers do not cover for scratches caused due to negligence or intentional damage.
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How many times can I file a claim under comprehensive car insurance?
There is no limit to the number of claims you can make with comprehensive car insurance. You can submit as many claims as needed annually for a vehicle.
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What is the cost of fixing scratches in India?
The cost of repairing dents and scratches in India is between 800 and 2000 rupees.
Conclusion
While it is possible to claim insurance for minor car scratches and dents, it is important to calculate the pros and cons before starting the process. The repair cost is low for minor damages, and making an insurance claim might not be the best thing. When searching for car insurance online, familiarise yourself with the terms and conditions to make the right decision when filing a claim.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.