Car Insurance Claim for Minor Car Repairs

Managing car repairs can be stressful, but a clear understanding of your car insurance policy and the coverage offered can help you reduce some of your burden. This guide is to help you understand different types of car insurance coverage, the claim process, and when and when not to file a claim for minor car repairs.

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How to Claim Car Insurance for Minor Damages?

Whether it's a minor scratch, a dent, or a broken headlight, the expenses can accumulate. Fortunately, car insurance typically covers these minor damages, though the specifics depend on your policy and the damage situation.

1. When to Claim Car Insurance for Minor Repairs

   • If the cost of the repair exceeds your deductible, it might make sense to file a claim.
   • If the damage is a result of a covered event, such as a collision or vandalism, your insurance will likely cover it.
   • If you have a low deductible, claiming minor repairs might be beneficial.

2. When Not to Claim Car Insurance Policy

   • If the cost of the repair is less than your deductible, it's usually better to pay out of pocket.
   • If the damage is a result of wear and tear, your insurance won't cover it.
   • Filing multiple small claims can increase your premiums in the long run.

You May Also Read: Can I Claim Insurance for Car Scratches in India?

Does Car Insurance Cover Non-Accident Repairs?

A comprehensive car insurance policy covers both accidental and non-accidental repairs. Carefully review your policy papers before purchasing car insurance, as some features might not offered by an insurer. You can purchase add-ons separately in addition to your comprehensive car insurance for an extra premium for more exhaustive coverage.

Some non-accidental repairs, such as damages due to the usual wear and tear of the vehicle, are not included in a comprehensive plan. Damages arising out of natural or man-made calamities are covered, and the car owner doesn't have to incur sudden expenses.

Will Raising a Claim for Minor Repairs Affect Policy Premium?

Raising multiple claims impacts your NCB and claim history, which significantly affects your car insurance renewal premium. If you raise subsequent claims even for minor repairs, you might end up paying a higher car insurance premium in future.

This premium increase majorly depends on the nature of motor claims. If you make frequent claims and are at fault in most of them, your insurance company will likely raise your premium costs as they consider you a big liability. Nevertheless, you can avoid this situation by paying for minor repairs or scratches out of your pocket.

You May Also Read: Common Reasons for Claim Rejection

Can I File a Car Insurance Claim After I Repair the Damages?

Yes. You can initiate your car insurance claim after the repairs, but it's best to inform your insurer about the incident before starting any repairs. Here are some important pointers to consider when filing a claim under your car insurance policy:

1. Policy Validity
   Always check the policy's validity before raising any claim. The insurer will deny the claim if the incident occurred when the policy was inactive.
2. Scope of Coverage
   Thoroughly review your policy coverage to know if your car insurance policy covers the incurred event.
3. Time Limit
   You should initiate the claim request immediately after the accident. Any delay in raising claims can result in claim rejection. Most car insurance policies specify timeframes within which you need to report claims.
4. Policy Exclusions
   Driving without a driving license or under the influence of toxic substances is not covered under car insurance. Claims will be denied if the driver was under the influence of alcohol or drugs during the accident.
5. Deductibles & Depreciation
   For example, if the damages amount to Rs. 5000, you won't get the entire amount because of a compulsory deductible and the applicable depreciation. Hence, keep these numbers in mind before making a claim.
6. No Claim Bonus
   If the NCB discount you would get for not raising any claim is more than the claim amount, it's better not to raise the claim. Moreover, consider the NCB Protect add-on (if you have one) before raising a claim.

Types of Car Insurance Coverage

A car insurance policy offers the following three types of coverage:

• Third Party Liability Insurance: The mandatory third party insurance offers coverage for accidental injuries you cause to a third party, property damages, and even their loss of life. Third party car insurance policy covers medical bills and treatment of other individuals, repairs for their damaged vehicle/property, as well as death liabilities.
• Own-Damage Insurance: A standalone own-damage policy covers damages to your own car arising out of an accident with another vehicle or object. You can opt for this optional coverage alongside third party insurance to protect your own vehicle from damage.
• Comprehensive Car Insurance: Comprehensive car insurance covers both damages to your own vehicle as well as third party liabilities. This type of car insurance policy provides complete coverage against financial and legal liabilities related to driving a vehicle.

Understanding Car Insurance Claim Process

If you want to raise a car insurance claim for repairs, be it minor or major, here's the simple process:

1. Contact Your Car Insurer: Immediately report the incident and initiate the claim as soon as possible.
2. Provide Documents: Your car insurance policy papers, photos of the damage, a copy of the Police FIR (if applicable), car’s RC (registration certificate), and driving licence.
3. Vehicle Inspection: Your insurance company will assign a surveyor to evaluate the damages and estimate the vehicle repair cost.
4. Approval: Once the claim is approved, you can take your car to an authorized network garage for repairs.
5. Payment: In case of a cashless claim, your insurer will pay the garage directly, and for reimbursement claims, your insurance company will reimburse you for the expenses later.

You May Also Read: Car Insurance Claim Process Guide

What is a Cashless Car Insurance Claim?

A cashless car insurance claim allows policyholders to get their cars repaired without paying anything from their pocket. The car insurer has tie-ups with multiple repair garages across the country. You can take your car to any of these network garages for repair, and the insurer will pay the repair expenses directly to the garage on your behalf. However, the following are the exclusions under a cashless car insurance claim:

• Depreciation: It is a gradual decline in the value of the car and its components over time. While raising a claim, the insurer deducts depreciation costs from the claim amount and covers car repair expenses excluding its depreciation, unless you have specific add-on covers.
• Deductibles: They are the amount that you pay during claim settlement. Deductibles can be compulsory (based on your car's engine capacity) or voluntary (chosen to reduce premium price). Your insurer won't cover deductibles during the cashless claim settlement.
• Consumables: They include materials, such as fuel filters, nuts, bolts, screws, grease, and oils used during car repairs. The cost of consumables is not covered unless you have a specific add-on. 

Wrapping Up

Any vehicle owner needs car insurance to pay for vehicle repair costs. Knowing your policy coverage enables better decisions while deciding whether to raise claims for minor damages. Remember, each car insurance policy is unique, so review your policy documents carefully. Consider avoiding raising a claim for minor damages to get optimum coverage at a lower premium during renewal.