Cheap Car Insurance and Car Safety – When to Make a Claim

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Policyholders often have a hard time deciding whether to file a claim on their car insurance policy. They assume that they might be financially better off if they do not make a claim. If the amount is small, they can save money on their long-term car insurance premium. You may have minor scratches or other problems that are not your fault. This could be something as simple as a lost aerial or a minor collision with another car. Both parties will agree that it is not in their best interests to pursue the matter further and not file a claim under their own insurance policies.

For one simple reason, this thinking could be dangerous. You are required to notify your insurance company if you are involved in an accident that could lead to a claim under your policy. Many people believe that they only need notify their insurance company if there is a possibility of filing a claim. This is false. This is false. Your insurance company must be notified at the moment you know there was an incident that could have led to a claim.

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It does not automatically mean that your insurance company will charge you more tax for renewal or that you will lose your no-claim bonus. The insurance company uses a simple principle to assess risk and determine the likelihood of you being insurable at renewal. An insurance company will evaluate a risk. They need to know if any incident occurred that could be covered under the policy.

It is easy to be a policyholder. The position for a policyholder is very simple. The decision to file a claim under your policy and receive compensation from the insurance company is up to you. It is possible that you will lose your renewal premium or your no-claims bonus discount if you make a claim.

Your no-claims bonus will not be affected if you choose not to file a claim. However, depending on the severity and extent of the incident, your insurance company might decide to unilaterally increase your car insurance rates. Most cases will have a policy excess. This can be very significant, so it is worth not claiming under your policy. Knowing your policy conditions, what coverage you have and your excess will help you make an informed decision about whether or not to file a claim.

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This exception is not the rule. Most insurance companies will let you make a claim on your windshield or windscreen if it has been damaged or broken completely without affecting your policy. This safety feature is quite common in car insurance and allows you to drive safely. It does not affect your no-claim bonus or your premium, if you have to file a claim.