Getting insurance is only half the part. However once you’ve got insurance, you can drive around worry free even in the congested traffic in rush hours because if GOD forbid you run into any accident you can simply call your insurance company up and file a claim with them.  Sounds pretty simple right? But what if we told you that you could benefit by actually not claiming insurance every time? Yes it can really help you save money in the long run if you file your claims smartly. Below we will tell you how you can save up by not filing up a car insurance claim. Mentioned below are some scenarios that can help you understand how this works.

Scenario 1:
You run into an accident and the damage to your car is so minor that it doesn’t affect your daily driving or is cosmetic only and not mechanical fault then it would be sensible enough to let it be until your car accumulates enough damage  or if the cost of getting it fixed is not much then you can get it done yourself instead of getting it claimed. The benefit here is twofold. One being that your no claim bonus will stay intact and you will end up paying lesser annual premiums next year.

Scenario 2:
If you really like to keep your car in top shape and claim your insurance on each and every incident of damage, this could work against you and the insurance provider might decide to increase your annual premium due to your increased claim rate or might end up replacing your damaged parts with pre-owned parts instead of new ones.

Scenario 3:
If you run into an accident, and have minor injuries and think that first aid can be enough for you, then it’s better not to file a claim as again it will hurt your no claims bonus and bring it down to zero. Also if you have Third Party Liability insurance, and you run into an accident and damage the other person’s car due to your mistake but the damage is minor then again it’s better to settle it personally instead of having the insurance company being the mediator.

Scenario 4:
Another thing that’s as important as others is that deductibles also come into play whenever you have an accident and file a claim with the insurance provider. So for e.g. if the damage to your car is minor and the deductible comes out to be lesser than your no claim bonus at the end of the year, then it’s better to get it fixed personally or just leave it as it is because you’d be letting go of your no claim bonus which could’ve saved you more money than getting your damaged car fixed. Hence file your claim wisely.

Following the above tips you can easily save money in the long run and lower your annual insurance premium costs while still having the safety bubble of insurance in case any untoward incident happens. Some reputed car insurance companies in Pakistan include EFU, Adamjee, Jubilee and IGI.

Khurram Zahid

The post When NOT To File A Car Insurance Claim? appeared first on Smartchoice.pk.

Accidents Happen:
While driving on the road, any driver is prone to running into an accident at any time. Sometimes it can be due to your negligence but even more importantly there are times when someone else on the road bumps into you. If you’re insurance has lapsed then you can say goodbye to be able to claim anything and will have to pay for all the expenses on your own which can burn a pretty big hole in your wallet.

Additional Charges:
If your insurance policy has expired and you didn’t get it renewed within time, then you might be subject to late payment fee or any extra penalties.

Rejection:
If you did not renew your policy and then had a car accident after which you decided to get insurance without getting the damaged fixed then your insurance provider may reject your application due to the risk of you claiming for the damage right after your car has been insured.
Another reason for rejection could be if you didn’t pay your dues and then tried to switch to another insurance provider then once the new provider checks your car’s insurance history and finds out that you’ve previously defaulted on payments your application will be rejected because there will be a risk of fraud.

Increased Insurance Cost:
If you didn’t renew your insurance on time then you might not get the yearly discounts that you could otherwise get at the time of renewing your policy.

So take our advice and don’t leave your car uninsured. You’ll only put your life and finances in jeopardy if you do so. Car insurance really helps and we recommend our readers to get car insurance if they haven’t done so already. It really pays off to do so. If you have something more to say, leave us your comments below!

Khurram Zahid

The post 4 Big Reasons Not To Let Your Car Insurance Lapse! appeared first on Smartchoice.pk.