Should You Make A Claim On Your Insurance Policy?

July 15, 2014 / by / 0 Comment

In most places around the world, you need to have valid insurance cover before you can drive your car on the road. It is illegal not to do so, and can result in local authorities seizing and destroying your car.

We all know that, sometimes, car insurance can be expensive. But the good news is that comprehensive insurance policies let us make claims for accidental damage. Unfortunately, there are some caveats to making car insurance claims of this nature.

How can claims impact insurance policies?

Let’s set the scene. You’ve just gone to your local supermarket and parked your car in their car park outside. After you’ve finished shopping, you return to your car to discover, to your horror that a runaway trolley has crashed into it!

There is no way of proving if a lazy motorist left the trolley near your car, or whether it somehow made its way to your car on a windy day. In either case, it can be quite upsetting to see your otherwise immaculate pride and joy with a big dent and scratches down the side.

Your first thought would be to drive home and call your insurance company to make a claim. They will have your car repaired as long as the damage doesn’t exceed a large percentage of your car’s value.

The only downside to claiming for accidental damage is that you have to pay your excess. You might be thinking that there is nothing more to pay. But the truth is, your accidental damage claim will cost you big bucks in the long run!

One of the questions that insurance companies ask you before they give you quote is whether you have made any previous claims. Because you have to tell them that you did, you have now become a high risk. You are a high risk, because you are now more likely to make a claim on the new insurance policy.

To mitigate that risk, the insurance company will charge you a higher price for your comprehensive cover.

Alternatives to claiming

Of course, you don’t have to make a claim on your car insurance for accidental damage. If you have a small amount of damage to your car, it will be better to pay for any repair work yourself.

And if you have minor damage, such as on a wing mirror, you could even repair your car yourself if you are competent with tools!

Another scenario might be where an uninsured driver has hit your car and driven off, leaving you with a total loss. If your car doesn’t have a high value, it might be better to visit and buy a new car. It can often be cheaper to do that instead of claiming from your insurance policy.

If your car is only worth a few hundred, you might not even get the market value for your car from your insurance company! Some people find it less hassle to do that rather than haggle with an insurer.

Image credit: The Pug Father

About the Author

An aspiring filmmaker, a chai addict, a part time teacher and writer, Aleena Mashhood shares her views from time to time about anything she feels strongly about.

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