How to Claim Car Insurance for Minor Damage

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HOW TO CLAIM CAR INSURANCE FOR MINOR DAMAGE

Car insurance involves three main parties: the policyholder (first party), the insurer (second party), and any other person affected in an accident (third party). In India, it is mandatory to have at least third-party insurance, which covers damage caused to others. However, this does not cover damage to your own vehicle.

If you are wondering how to claim car insurance for minor damages, there are two types of car insurance claims that policyholders can raise, cashless car insurance claim process and reimbursement car insurance claim process.

With a cashless claim, you don’t need to pay upfront for the repairs. Your insurance company directly settles the repair bills with a garage in their network. Here are the steps of how to claim car insurance using the Cashless Car Insurance Claim Process:

1. Inform the Insurance Provider: 

After an accident or damage to your car, notify your insurance provider immediately. You can also log into your insurance provider’s website to file a claim.

2. Damage Survey:

A surveyor from the insurance company will inspect the damage to assess the repair cost.

3. Towing Service (If Needed):

Sometimes part of the plan, the insurers or the service garage would offer towing services. You can request this to transport your car to the nearest network garage.

4. Repairs and Billing:

Once the necessary documents are submitted, the network garage will repair your vehicle, and the insurance provider will directly pay the garage.

5. Deductible Payment 

You will be required to pay the compulsory deductible to the insurer. If you opted for a voluntary deductible, you will have to pay that amount as well before taking your car.

  • Reimbursement Car Insurance Claim Process

For a reimbursement claim, you need to pay for the repairs yourself first. Later, the insurance provider will refund the amount as per the policy terms. The major advantage of this claim is that you can choose any garage for repairs. Here are the steps of how to claim car insurance using the Reimbursement Car Insurance Claim Process:

1. Initiate the Claim: 
After the incident, contact your insurance provider to initiate a claim. You can also submit your claim through their website using your credentials.

2. Survey of the Damage:

A surveyor will be sent to assess the damage and provide a repair estimate.

3. Towing Service (If Required):  

You can either drive your vehicle to a garage or request a towing service through your insurance provider.

4. Repair and Payment:

Get your car repaired at any garage. Make sure to collect the original repair estimates and bills.

5. Submit Documents for Reimbursement: 

Once the repairs are done, submit the original bills and required documents to your insurance provider for reimbursement. You will still need to pay the compulsory deductible and any voluntary deductible if you have chosen.

Key Points To Keep in Mind During Minor Damage Claims

  • Claim Process: For small issues like dents or scratches, the claim process is faster since the damage is minimal and doesn’t require extensive repair work.
  • Repair Costs: The cost of repairs for minor damage is usually lower. Sometimes, the cost might be close to or even below your deductible, so it may not be worth filing a claim.
  • Deductibles and Out-of-Pocket Expenses: If the repair cost is similar to your deductible, it is often better to pay out-of-pocket rather than filing a claim and risking the loss of your No-Claim Bonus (NCB).
  • Impact on No-Claim Bonus (NCB): Filing a claim for minor damage can reduce your NCB, which offers discounts on premiums for claim-free years. In this case, it is better to avoid filing a claim to keep your NCB intact.
  • Claim Approval and Inspections: Claims for minor damage are usually approved faster and may not require detailed inspections. Simple photo evidence might be enough.
  • Insurance Premium Impact: Filing a claim for minor damage could increase your premium slightly at renewal, even though the damage is minimal.

Conclusion:

Hope this blog helps you understand how to claim car insurance for minor damages. Whether you choose a cashless or reimbursement claim, it is important to follow the right steps to ensure a smooth process. Always inform your insurer right away and submit all the needed documents to avoid delays.