Savings Made Easy! Lower Your Bike & Car Insurance Costs by Skipping Small Claim

Owning a vehicle comes with considerable expenses. DIY fixes may be more affordable for minor repairs or damages than filing frequent insurance claims and risking premium increases or loss of no-claims bonuses. For more significant collision repairs, obtaining quotes from garages first and paying out-of-pocket, if feasible, can avoid unnecessary hikes in insurance costs.

With some prudent strategies, car and bike owners can optimise their budgets and avoid having their finances drained by the many costs associated with owning and operating a vehicle. The goal is to find the right balance between reliance on four-wheeler and two wheeler insurance and affordable self-management of incidental repairs and damages.

Why Not to File Insurance Claims for Minor Issues?

Dealing with some minor damage or a little issue on your car or motorcycle? Your first instinct might be just to file an insurance claim and let them handle it. But hang on a second. There are a few cons to calling up your insurer every time some small thing goes wrong:

• Increased Premiums: Each claim filed can increase your insurance rates at renewal time. Multiple claims may result in more significant hikes.
• Higher Deductibles: Your deductible may increase after a claim. It means you'll pay more out-of-pocket on future claims.
• Policy Cancellation: Too many claims may cause your insurer to drop your policy altogether. It forces you to seek coverage elsewhere, often at a higher price.

When to File (and Skip) a Claim

To avoid unnecessary rate hikes and deductible increases, follow these guidelines on when to file a claim against your car insurance online:

File a Claim For:

• Major collision damage
• Total theft of vehicle
• Natural disasters/weather events
• Major damage by others
• Injuries requiring medical care

Skip the Claim For:

• Small dents/scratches with no paint damage
• Chipped or cracked windshield
• Tyre punctures
• Minor interior stains/damage
• Mechanical issues/breakdowns

Finding the Best Policy Rates

While skipping small claims helps lower premiums over time, starting with the best policy rates makes insurance even more affordable. Here are some quick tips:

• Compare quotes: Get quotes from at least 3 providers before purchasing a policy. Rates vary greatly by insurer.
• Ask about discounts: Companies offer discounts for good driving records, multiple policies, safety features, and more. Inquire to save 15-30%.
• Look for telematics programs: These usage-based programs can lower rates significantly for safe, low-mileage drivers.

Switch Providers Strategically

Don't hesitate to switch insurance companies if you find a much better rate. But avoid bouncing around annually, as this makes you look high-risk. When comparing a new insurer, factor in any loyalty discounts you'd lose by switching. Weigh the savings against the loss of those discounts.

Handling Claims Wisely When Needed

While minor claims are best avoided, major accidents, damage, or theft will likely require filing a claim with your insurer. Here are some tips for navigating the claims process:

• Report it quickly: Notify your insurer within 24 hours of the incident. Delayed reporting can complicate the process.
• Document everything: Take detailed photos and notes of the damage, incident location, witnesses, etc. This evidence will support your claim.
• Get repair estimates: Your insurer may require repair shop estimates. Obtain these promptly.

Conclusion

Shop around for the best repair rates, use discounts and loyal shops to your advantage, and negotiate prices when possible. Proper maintenance also demonstrates responsibility and earns savings. While major damage will require a claim, handle the process professionally to preserve your insurer relationship. Comparing rates routinely and building goodwill ensures you find the most savings on your policies.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.