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Car Insurance Premiums & Filing For Accident Claim
Aug 11, 2022

Do Car Insurance Premium Increase After An Accident Claim?

Even if you are an experienced driver, you must always ensure appropriate precautions are taken while driving. This instills a practice of safe and secure driving, helping you avoid accidents to the maximum possible extent. But accidents may not always happen due to your fault. It can be even a distracted driver on the road colliding with your vehicle. Whatever the reason, these unexpected events are sometimes unavoidable. A car insurance policy is what helps you avoid financial losses in these situations.

Do Car Insurance Plans Cover Accidents?

When buying a four wheeler insurance, it is important to define the type of loss you are seeking coverage for. Hence, you must be aware that not all policies provide coverage for accidents. For instance, a third party car insurance policy protects only against liabilities that arise due to an accident. This policy provides no coverage for accidents that may require repairs to your car. On the contrary, a comprehensive policy, the other type of car insurance plan, protects against accidents. This way, you can rest assured that your policy extends its coverage for situations that end up requiring repairs for your car. * Standard T&C Apply

Do Accidents Impact the Car Insurance Premiums?

Yes, accidents, where an insurance claim is made for the repairs, impact the car insurance premium. The insurer protects the repairs in exchange for a premium amount. Thus, the higher the risk, the higher will be the premium charged. Now if you raise a claim for accidental repairs, the insurer assumes you are a risky policyholder. Thus, the premiums charged are higher in these cases. In case of a repeated claim with the insurance company, you will notice a higher premium levied in that case. Some insurers may offer a lower coverage but for the same premiums or even restrict the number of available add-ons. Thus, raising an insurance claim for repairs does impact the premium calculation. However, if you decide to not raise an insurance claim and carry out the repairs on your own, there will be no impact on the renewal premium. This scenario is limited only when no inspection is carried out before renewal, which is the case when renewed before expiry. But if you renew the policy after its coverage ends, an inspection is generally carried out which may spot the accidental repairs and impact your premium. * Standard T&C Apply

Are Third-party Premiums Also Impacted Due to Accidents?

No, third-party premiums have no impact during an accidental claim. It is a minimum requirement to purchase a third party car insurance online or offline. Since, this policy has limited scope, providing no coverage for the repairs to your car, it is not activated when you claim your own damages. Moreover, the regulator, IRDAI, decides and periodically revises these third-party premium rates. Thus, there is no impact on the premium of your third-party coverage when you raise an insurance claim. You can visit the official website of IRDAI for further details. * Standard T&C Apply

How Does the Premium Impact After an Accident?

The insurance premium is impacted in either of the two ways:
  1. Premium loading where the actual policy premium is increased considering the policyholder as a risky individual.
  2. Loss of no-claim bonus where any accumulated concessions are withdrawn when you make an insurance claim resulting in restoring your renewal premium to its original amount.
* Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.  

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