How does Taking claims Impact your car Insurance Policy? - Financing Panda: Latest News on Finance, Loan, Business


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Friday, May 20, 2022

How does Taking claims Impact your car Insurance Policy?

An automobile represents a big financial commitment in one's life. You must also ensure that your vehicle as a car owner complies with legal obligations. An automobile insurance policy offers you financial security if your car is destroyed, in addition to completing legal obligations. Filing a claim is the procedure for alerting car damage insurance and requesting repayment. So, exactly does filing a claim affect your auto insurance? In this post, we'll look at it.

Does accidents impact Car Insurance premium?

If you submit a claim after a car accident, it may affect your insurance premiums. In return for a payment, automobile insurance firms give financial protection to drivers against a variety of dangers. If there is a greater danger, the premium will be higher. When you file an accident claim, your motor insurer perceives you as a high-risk client, and your vehicle insurance rate rises as a result. The greater your claim history, the higher your renewal price for the best car insurance in India.

If you have a history of filing several claims, your automobile insurance policy may be impacted. Some car insurance providers may limit the amount of coverage on your policy and provide you with a less comprehensive policy. If you have a policy with one of these companies, you won't have access to all the optional coverages available to you under your policy. Furthermore, some insurers may only provide you with third-party liability coverage rather than comprehensive coverage.

There is no influence on your insurance premiums after an accident if you choose not to register a claim and pay for the repairs yourself. When renewing your vehicle, this is only available if your car is not needed to be inspected. It's possible that if your four-wheeler is examined before policy renewal, your insurer may find damage or repair work that necessitates an increase in your automobile insurance renewal price.

What happens if you make multiple Car Insurance claims?

There is no limit on the number of claims you may make in a given insurance year. To prevent filing many vehicle insurance claims throughout a policy year, consider the following:

  1. No Claim Bonus: The insurance company reduces the following year's policy premium in exchange for not filing a claim during the policy year. The NCB increases by 20% for each year of claim-free service, and it may reach 50% after five years of claim-free service. Any claim filed in the meantime might result in you losing your NCB benefits. As a result, only file a vehicle insurance claim if your repair costs exceed the NCB discount.

  1. Increase in Premium: If you submit any claims against your automobile insurance within a policy year, the insurance provider has the option of raising your premiums when you renew your policy. The insurance company sees you as a larger risk or responsibility if you file many claims in a calendar year. As a result, the insurance provider may raise the premium for your plan to continue covering you.

  1. Zero Depreciation Cover: When a claim is settled, the insurance provider must pay the claimant without considering the individual's depreciation rate if the individual has purchased the zero depreciation add-on cover. It should be noted that there are certain restrictions on the number of claims that you may submit under this zero depreciation insurance policy in a single year under this policy.

  1. Deductible Amount: Consider avoiding filing a claim on your automobile insurance if repair costs are lower or somewhat more than the deductible amount stated in your policy paperwork. Even if you have filed a claim, the deductible component of your automobile insurance coverage may result in you receiving inadequate compensation.

ACKO’s claim procedure

One of the essential phrases in vehicle insurance is the term "claims." In basic terms, making a claim entails you (the insured) informing ACKO (the insurer) of the harm, and Claim Settlement refers to the amount of money you get from ACKO. There is a procedure for filing a claim, and using the standard route is generally time-consuming. However, since Acko car insurance is a digital-first insurer, filing a claim is simple and painless.

The processes for filing an online vehicle insurance claim with ACKO are as follows.

Step 1: Use the ACKO website or the ACKO mobile app to access your ACKO profile.

Step 2: Choose the 'Claim Now' option on your policy card.

Step 3: Submit a claim request with the necessary information and documentation (if applicable) about the damage to your vehicle.

You might expect to obtain your claim payment within a few hours for small losses. We'll get in touch with you if the damages are significant, and we'll take care of the claim for you. ACKO will fix your automobile in three days and bring it to you (in select cities).

So now you know there are no limitations on the amount of vehicle insurance claims you may make each year. However, filing several claims is not permitted. A claim for minor damages or repair costs that do not exceed your deductible or exceed NCB should be avoided. The loss of NCB and the rise in insurance premiums are the two most important consequences of filing several claims.

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