Having insurance for your vehicle is not only a mandate law from the government but it is a saviour when you think about financial management, as the technology is increasing the sophisticated of each parts of the vehicle. Insurance has to be there for both new car and used cars in montclair. Making claim for fewer amounts is not at all a fine proposal it can ham you in long run. Some reasons it is not good idea.
- You will loss on the no claim bonus. This is awarded to the people who do not claim their insurance in complete year. The amount which is given as bonus can be used in deducting the premium amount for next insurance. The discount will be increasing each consecutive year but the condition is there should be any claim is done. So next time when you are claiming think before you do that.
- Deductible is one section which will make the owners to think before claiming the insurance. There are two types of deductibles one is the compulsory deductible which every owner has to pay for each claim he makes. For example there will be a fixed amount which the owner has to contribute towards the repairs, whatever may be the total cost of the repairs done. The second one is the voluntary deductible were the owner itself promise to contribute some amount for the repairs when he claims for insurance.
- It also affects the value of the car when you are reselling it as the insurance document will clearly show the level of no claim bonus. And you have made any claim due to accident can also cause the reduction of value.
- Insurance companies have upgraded their policies in many ways like the insurance premium can be different for each individual that is decided depending on the claims made by the individual. There is chance that the insurance company can reject the renewal of the insurance if the person has made more claims in the past year.
Conclusion
Hope you will think twice before you claim your insurance next time.