We know that future is uncertain. No one can predict the future and no one can tell what will happen tomorrow. So it is always good to prepare yourself for the worst. This is also a universal fact that no one can change future. However it is in our hand that we can minimize the loss or damage that could occur if something went wrong in the future.
Daily there is news flashing on your television of newspaper about lots of accidents. You read them and feel sorry and sad about those who either get injured or loss their lives in the accident. However, what if the accident incident has occur with you? There are many occasions when your car met with an accident and even having the insurance coverage, people hesitate to file for the claim as the claim is comparatively small. So, this article provides a complete guide to how to file small car insurance claims?
Let’ look at a Case Study regarding How to File Small Car Insurance Claims
Mr. Harsh Negi bout a new Maruti Swift Dzire. He also made a comprehensive car insurance for the protection of his car. After 6 months, his car met with an accident in which Mr. Negi suffers few mild injury plus his car also get damaged. However the damage was not big. He was quite relaxed that he is having insurance cover so he has not have to bear the cost of the repair.
Then he discuss the issue of how to file small car insurance claims with his family and relative members. They all say that it is very hectic task and the damage is small so why to indulge himself in it. At last he decided to bear the cost from his own pocket. Well, this is very ordinary situation which happens with most of the people.
Mr. Harsh Negi was an insured person and he has the right to file the claim. But because of not having enough knowledge about how to file for claim, he bears the cost from his own pocket.
How To File Small Car Insurance Claims
Filing Small car insurance claims is all about calculations. First of all, you need to calculate the cost you have to pay. Then compare it with the No claim Bonus that you will be getting if you don’t file for the claim. On the basis of this comparison, decide whether you want to file for the claim or not.
No Claim Bonus is Affected
NCB refers to the discount that the policy holder gets at the time of filing for Car Insurance policy renewal, when he does not file for the claim. At initial stage the NCB is 20 percent. However, if policy holder does not file for the claim, then it increases with the time. On the other hand, if you file only one claim, then NCB become nil. This is the reason, policy holders avoid to file for the small claims.
Suppose you have taken a car insurance policy in which the deductible expense is 2000 and the NCB is 6000. Now you file a claim of 4000. In this case you have to pay 2000 from your pocket and you won’t get any NCB. So claims of small amount are avoided they result in loosing money on the part of policy holder. So file claim when the amount is large.
When you take policy, you have to decide the deductible amount at that time. It is the amount that the policy holder will pay from his own pocket. So when you file claim, the deductible amount is subtracted and then insurance company pays you the remaining amount. So, always try to avoid to file small car insurance claims which are especially more or less equal to the deductible expenses.
Policy holders ! always remember, do not file small claims as they result in loosing money from your own pocket. File claims that involves large amount.