An unfortunate car accident is when you are reminded about your car insurance policy. Accidents are unpredictable, and no amount of precaution can save you. But things are different when you invest in a robust car insurance policy. You can be free from any financial worries concerning the damages to your car or a third person.

But in some situations, no third person is involved, and you accidentally damage your car. For instance, while reversing your vehicle, you hurt the bumper. It will not look great with a cracked bumper, and that’s when a comprehensive car insurance policy comes to the rescue. When you buy such car insurance online, you can ensure the car’s damages are covered.

However, it is one instance where you make an insurance claim, but not all damages need to be raised with the insurer. Submitting an insurance claim nullifies any accrued renewal benefits. Here are some reasons why you must avoid minor insurance claims:

1. Impact on no-claim bonus

The primary downside of making an insurance claim for minor damages is losing a no-claim bonus. The no-claim bonus or NCB is the renewal benefit offered as a concession in your insurance premium. With every claim-free policy year, the policyholder accrues such an NCB, lowering the renewal insurance premium. While the amount of NCB starts at 20%, it scales up to 50% of the damage premium with consecutive policy tenures without a claim. Thus, any insurance claim ends up annulling such a bonus. *

2. Payment of deductibles

Each insurance claim requires you, the policyholder, to pay the specified deductible in your insurance coverage. Deductibles are of two types—mandatory and voluntary deductible. As the name suggests, a compulsory deductible must be paid by all policyholders; a voluntary deductible can be opted for by the policyholder. When you raise a claim for minor repairs, you shall be required to pay for such a deductible as per the policy terms, and, hence, it would not be an intelligent choice to raise an insurance claim. In addition to deductibles, you also lose your no-claim benefits. *

3. Evaluating the quantum of loss

An evaluation of the quantum of loss is essential for a claim for a minor repair. The quantum of failure needs to be equated with the deductibles required tn your policy and the benefits given up by the no-claim bonus. Equating such loss against these two factors gives you the idea of renewal benefits foregone vis-à-vis the insurance benefits received. *

4. Restoration of future premiums

As discussed above, you must give up the no-claim bonus at the time of the insurance claim. Such an act restores the car insurance premium to its original amount and, thus, increases the burden at the time of car insurance renewal online. Therefore, evaluating the benefits by availing the insurance coverage is better than evaluating future benefits at renewal. *

* Standard T&C Apply

With these reasons in mind, you must consider the future benefits of every car insurance renewal compared to the current coverage offered by the insurance plan. Alternatively, you can use NCB protection coverage to make insurance claims several times before nullifying the NCB percentage. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.