Should You Claim Insurance For Bike Scratches?

We all try to keep our vehicles clean and shining. After all, who doesn’t like a dazzling car or bike, right! But, it is inevitable to keep your bike or car good as new for longer. No matter how cautious you are, your new car or bike will end up getting minor scratches or dents with time. And this can be very irritating if it was not your fault. Well, you cannot control the circumstances, but the thing you can do is buy a car or bike insurance. Insurance can help you get the recovery of the damage done to your bike or car. However, the question that surfaces here is: can I claim insurance for bike scratches? More importantly, is it worth claiming insurance for some minor scratches on your bike? Let us find answers to these questions!

Can I Claim Insurance for Bike Scratches?

With a comprehensive policy, it is possible to claim for scratches on your bike. However, it's not always the best decision. Here are the reasons why:

1.Deductible

Every insurance policy has a deductible, which is the amount you need to pay upfront before the insurance coverage kicks in. If the cost of repairing the scratches is less than the deductible, it may not make financial sense to file a claim, as you'd end up paying for the repairs out of pocket anyway.

2.No Claim Bonus (NCB)

Insurance companies offer a no-claim bonus, which is a discount on your premium that increases with every claim-free year. Filing a claim for a minor scratch could reset your NCB to zero, which would negate potential savings in the long run. It's important to consider the impact on your NCB before filing a claim for minor damages.

3.Increased Premium

Even if the claim doesn't affect your NCB, insurance companies may view frequent claims unfavourably and raise your premium. It means even if you don't lose your NCB, you may end up paying more for insurance in the long term if you make frequent claims for minor damages.

When I Should Raise Bike Insurance Claims?

Now that we've explored the potential downsides, let's look at situations where a claim might be justified:

Extensive Scratches

Deep scratches that compromise the bike's structural integrity or expose the metal underneath can lead to rust. In such cases, the repair cost might exceed the deductible, making a claim worthwhile.

Multiple Scratches

If your bike is sporting a collection of scratches, claiming can make sense, especially if the cumulative repair cost is significant.

Vandalism

If the scratches are a result of vandalism, filing a claim can help recoup repair costs. A scratched bike might sting, but a smart approach to insurance claims can prevent a financial headache. By understanding your policy, weighing the costs, and exploring alternatives, you can keep your bike looking sharp and your wallet happy. Remember, a well-maintained bike with a few character-building scratches is a testament to your riding adventures. Also Read: How To Claim Insurance For Bike Accident In India?

Why Should You Not Raise Claims for Minor Scratches?

1. Avoid Premium Hikes: Frequent claims for minor issues can increase your renewal premium under the no-claim bonus (NCB) policy.
2. Preserve NCB Benefits: Not claiming for small damages helps you retain the No Claim Bonus, which offers discounts on future premiums.
3. Deductible Costs: The claim amount for minor scratches might be less than the deductible, making the claim financially unviable.
4. Lengthy Process: Filing a claim for minor damage can be time-consuming and involve unnecessary paperwork.
5. Insurance Policy Reputation: Frequent minor claims can flag you as a high-risk customer, possibly impacting future policy terms.
6. Minor Repairs Are Affordable: Scratches can often be fixed at a lower cost than the excess charges on the claim.
7. Policy Coverage Limitations: Small scratches may not always fall under claimable damages in your policy.

What Are the Advantages of Not Claiming Insurance for Minor Bike Scratches?

It may seem like an unlikely option at first, but if you do not claim your insurance for some minor damages to your bike, it will help you in the long run. You ask why? Here are some of the hidden benefits of that:

No Claim Bonus 

If you’re not aware of what is NCB in bike insurance then you should know that it is a discount that you get for not claiming the insurance in the preceding year while renewing your policy. And the amount of this bonus keeps going up for each claim-free year. Refer to the table below:

Number of Claim Free Years	NCB Discount
1 year	20%
2 continuous claim-free years	25%
3 continuous claim-free years	35%
4 continuous claim-free years	45%
5 continuous claim-free years	50%

So, if you will refrain from claiming your insurance whenever it is possible (however not for a high damage amount), it will be beneficial for you. Every time you claim your insurance, the NCB resets to zero.

Low premium

You should also be aware of what is insurance premium. The benefit of not claiming insurance for minor bike damage is a low premium. Whenever you claim for the damages of your bike, the premium rises by a significant value. This, in turn, will again hit your pocket badly.

Is There Any Threshold Amount for Which I Should Claim the Insurance?

As no one knows how much the damage will cost at first, it is necessary for you to do the maths before claiming your bike insurance. The general rule is that if the revamping is required for two panels of the car or the overall damage amount is over 6000 INR, it is best to go for the insurance. Here are some simple examples:

1. Damage: One body panel

If you get it repaired on your own: Rs 5000 If you claim insurance: Rs 5800 (including filing charges) Solution: Save the claim!

1. Damage: Three-Body Panels

If you get it repaired on your own: Around Rs 15000 If you claim insurance: Around Rs 7000 (including filing charges) Solution: Claim! These are some simple examples for comparing the cost. You need to assess these costs before making a decision. These costs will vary based on the type of vehicle you are claiming insurance for. Hence, be careful while calculating! Also Read: How To Claim Insurance For Bike Theft?

FAQs

Are scratch and dent insurance worth it? 

Well, it will depend on the difference between the charges that you will incur if you got it repaired yourself and the amount that the insurance company will pay. If it is less than what you are paying, claiming, the insurance is a good option or vice versa.

How much does a scratch increase insurance? 

If you file an insurance claim for scratches on your bike, it will boost your insurance rate by around 38% or more depending on the prior damage to the bike.

How do insurance companies handle claims for scratches?

Insurers assess the damage to determine if it exceeds the deductible and is eligible for coverage. Filing claims for minor scratches is often discouraged.

Does claiming for bike scratches affect my premium?

Yes, frequent claims, even for minor damages like scratches, can lead to increased premiums during policy renewal.

What are alternatives to claiming insurance for bike scratches?

Opt for minor repairs at local workshops or DIY fixes, which are often more affordable and prevent losing NCB benefits. *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. The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.