Nobody likes to get involved in a car accident, but it is better to be minor if you are already a part of one. The general rule is that a minor incident is where no persons were injured (even lightly), and there was only small damage to cars or other property. While you have the right to file a claim after every car accident, should you do that after a minor one? Here is what the experts have to say on the topic!
Is It Worth Losing A No-Claim Discount Over That Car Accident?
The car insurance agencies in Malaysia offer something called NCD – a no claim discount. A no claim discount, better known as NCD, is a special discount for those who haven’t filed a claim on their insurance policy in the past. The discount rates vary – they begin at 0% once you acquire a policy, but can increase to 50% or more after using the policy for five years. The moment you file a claim, you lose NCD – a no claim discount, and it resets to 0% the following year. Here is a simple way to determine if it is worth filing a claim:
- Calculate the cost to fix the damages in the car accident
- Determine the discount for the upcoming year of your insurance deal
- Compare the two numbers – if the repair is cheaper than the discount you expect, it would be smart not to file a claim.
- It is worth noting that accidents, where you are not to blame, do not affect your NCD. That is why you should feel free to file a claim for them.
Keep Your Driver Risk Profile Low
The Malaysian Government allowed insurance companies to determine their insurance prices themselves. That means the agencies are free in setting their prices, which might result in a price increase in 2020. The companies determine the rates for their insurance deals based on several factors. They will estimate your profile, and that includes driving history. If they find previous claims and accidents logged into the system, the odds are they might consider you a risky driver. Even a minor incident could cause a premium increase. That is why you should consider if it is smart to file a minor car accident claim.
Why Should You Always Make A Police Report After The Car Accident?
You’ve probably spent a lot of time in traffic jams, and understand how they can make people nervous. What happens if you lose attention for a moment and hit the car in front of you? You might have had a stressful day at work or are worried about a major event in your life. Either way, you were driving 10-15 miles per hour, which means nobody suffered any injuries in the incident. The next move is to leave the car to establish any damage. You notice that the paint on the other car has been scratched off. Even though it is minor damage, you exchange contacts because you want to fix the damage.
A couple of days later, you receive a call with the damage requested fifty times more than the expected value. What happened behind the scenes? The other car driver recognized the chance to earn money and made a deal with the mechanic. They twisted the story, and you will have problems to prove otherwise. That is why it is always smart to make a police report of an accident, regardless of how minor it is. Once you have the police report, you can use it as proof so that no one scams you. It is up to you to decide whether you want to file a claim afterward. As we said, it will depend on your assessment of the situation. Try to analyze all details and make the best call based on the incident’s specifics.