Little known facts about minor car accident claims When your car is scratched, dented, or gets a small bumper repair, the repair cost may often be less than or equal to the deductible of your policy. In that case, it may not be cost-smart to file the claim. The claim could also lower your no-claim bonus (NCB), which gives you a discount in the premium for every year that you do not claim.
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How claims affect premiums It could reset your NCB, and you'll have to pay higher premiums next cycle. Assume your NCB is 20–50%. You can end up paying tens of thousands more in a span of years than the repair cost of a small scratch once. Insurers also monitor the claims history, and repeated claims could make renewal negotiations tough.
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When to claim But if the repair cost is too substantial, say in the case of damage to headlights, windshields, or advanced sensors in new vehicles, it may still be the smart decision to claim from the insurance. Similarly, in the case of a third-party vehicle or property, you must report and claim because third-party liability is mandatory by law.
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The long-term perspective Small accidents are usually best paid out of pocket to keep your NCB intact and prevent future premium increases. Save your insurance for significant repairs, third-party accidents, or cases where the bill is well over your deductible. This strategy offsets current costs against long-term savings.
Legal and reporting requirements Even if you’re not planning to make a claim, it is advisable that you report the accident to your insurer. Accidental omission may cause problems in case you get involved in another accident in the future because insurers can argue that your car was already damaged at one point in time. Notifying your insurer keeps matters open and prevents disputes during future claims.
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Balancing peace of mind Other than cost, the decision really comes down to peace of mind. If handling it yourself is manageable and keeps your insurance record intact, then it may be worth it. However, if you’d prefer the financial security of insurance, then filing a claim will ease anxiety even for a minor mishap. The trick is to weigh the financial trade-offs against your own sense of comfort.
