Effects of Taking Small Claims on Car Insurance

In our ordinary life, we all face many fortunate and unfortunate incidents. The fortunate ones bring smiles to our faces but on the other hand, the unfortunate can be devastating to our life. However, the companies have come up with insurance. Insurance provides compensation for the perils that damage life or assets. 

If we talk about cars, insurance plays an integral role in safeguarding them from natural and man-made perils. These can damage the car brutally, and repair of such a car can affect financial management. The insurance company offers you financial and legal aid against the perils and saves you from paying heavy bills. 

Procedure for Filing a Claim?

In today’s world, filing a car insurance claim has become so simple and easy. A few steps for filing a claim are: –

• As soon as the incident occurs, inform the insurer and ask to file the claim.
• If possible, take some snaps (this will help you to process the claim fast and smoothly).
• File for an FIR (in some cases the insurer asks for a copy of the FIR for example, in the case of a theft vehicle).
• Take your vehicle to the nearest registered garage.
• Fill out the form and submit the required documents. 
• In the end, take your vehicle to your respective place after the repair process. 

What are the effects of filing small claims? 

You have found many agents or family members, who suggest you not to file a small claim on your car insurance. Have you ever noticed the reason for doing so? Let’s have a look at the reason. 

If we file small claims the insurance company will definitely pass the claim if its valid but the major reason for not filing the small claims are 

• Claim History – The claim history of the insured is recorded. This can somewhere affect the history of the insured car. 
• Premium – For the vehicle that has a regular history of the claim is charged a higher premium. As the insurance company works on the principle of higher risk is bound to a higher premium.
• NCB – You will not be able to file the No Claim Bonus. This is the bonus that is offered by the insurer to the insured at the time of renewal of insurance.