Can any claims for minor car repairs offset hike in premium?

Regardless of being the proprietor of a seven-year-old car with a historical past of zero insurance coverage claims, I’m going through incremental premium hikes every year. The car has been well-maintained over time however has received a number of minor dents. Ought to I provoke a declare to restore this and offset the amassed premium funds over the previous seven years?—Title withheld on request

The principle objective of insurance coverage is to cowl any injury to the car. If there are substantial damages, you must file a declare. But when these are minor, you must weigh the price of restore in opposition to the rise in renewal premium of your automotive insurance coverage.

For every year, that you just don’t make a declare, you turn into eligible for a no declare bonus. This bonus is deducted as a reduction from the ‘personal injury’ premium of your automotive insurance coverage. Given your declare historical past, you’re more likely to be at a 50% no-claim bonus. After you make a declare, this bonus turns into zero. Your renewal premium would then enhance considerably.

Additionally, insurers give a particular low cost, relative to the erstwhile motor tariff. to supply a aggressive premium.Because the automotive turns into outdated, this low cost comes down. That’s why your renewal premium goes up marginally every year. Within the yr following which the declare is made, the particular low cost is considerably diminished. A decrease particular low cost clubbed with zero no-claim bonus will enhance your renewal premium considerably.

Insurers are more likely to reject claims for amassed damages. For instance, in case your automotive meets with an accident on the left facet, any present damages on its proper facet wouldn’t be lined.

Abhishek Bondia is principal officer and managing director,

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