Common Mistakes to Avoid When Filing a Car Insurance Claim: A DIY Guide
Filing a car insurance claim might seem straightforward, but even a small mistake can lead to claim rejection, delayed settlements, or reduced payouts. Many policyholders unknowingly make errors that can impact their compensation. To ensure a smooth claim process, you must be aware of the common pitfalls and avoid them.
In this guide, we will explore the most common mistakes people make while filing a car insurance claim and how to avoid them.
1. Delaying the Claim Intimation
Why is it a mistake?
Many policyholders wait too long before informing their insurance company about an accident or damage. Most insurance providers require immediate intimation, often within 24 to 48 hours.
How to avoid it?
- Contact your insurance provider as soon as an accident occurs.
- Use the insurer’s mobile app or helpline for quick reporting.
- Ask about the exact time frame for claim intimation in your policy.
2. Not Filing an FIR When Required
Why is it a mistake?
For certain claims, especially theft, major accidents, third-party damage, or injury cases, an FIR (First Information Report) is mandatory. Failing to submit an FIR can lead to claim rejection.
How to avoid it?
- File an FIR immediately if the incident involves theft, third-party damage, or serious injury.
- Keep a copy of the FIR and submit it with your claim.
- If unsure, ask your insurer whether an FIR is required.
3. Providing Incomplete or Incorrect Information
Why is it a mistake?
Giving false, incomplete, or misleading information can invalidate your claim and even lead to legal trouble.
How to avoid it?
- Always provide accurate details about the accident, time, location, and damage.
- Do not exaggerate or fabricate the claim amount.
- Submit all required documents correctly.
4. Admitting Fault Prematurely
Why is it a mistake?
Many drivers apologize or admit fault at the accident scene, which can be used against them during the claim process.
How to avoid it?
- Avoid making statements that can be interpreted as an admission of guilt.
- Let the insurance company and authorities determine liability.
- Provide an honest account without assigning blame.
5. Repairing the Car Before Inspection
Why is it a mistake?
Many policyholders get their car repaired before the insurance company inspects the damage, leading to claim denial.
How to avoid it?
- Wait for the insurer’s surveyor to assess the damage before repairs.
- If emergency repairs are needed, take photos and keep bills for documentation.
- Always get repairs done at an authorized garage.
6. Not Keeping Proper Documentation
Why is it a mistake?
Missing documents can lead to delays or even rejection of your claim.
How to avoid it?
Ensure you collect and submit:
- A duly filled claim form.
- FIR copy (if required).
- Photos and videos of the accident scene.
- Repair estimates and bills from an authorized garage.
- A copy of your insurance policy, RC, and driving license.
7. Opting for Unauthorized Repair Centers
Why is it a mistake?
Most insurance companies have a network of cashless garages. Getting repairs done at an unauthorized garage may result in claim rejection or lower compensation.
How to avoid it?
- Always check if the repair shop is approved by your insurer.
- If opting for reimbursement, get a proper invoice and payment receipt.
8. Overlooking Policy Exclusions
Why is it a mistake?
Many claimants assume all damages are covered, but policies have specific exclusions.
How to avoid it?
- Read your policy terms and exclusions carefully.
- Common exclusions include drunk driving, expired insurance, and consequential damages.
9. Claiming for Minor Damages Unnecessarily
Why is it a mistake?
Filing frequent claims, especially for small damages, can lead to loss of No Claim Bonus (NCB) and higher premiums.
How to avoid it?
- If the repair cost is lower than your deductible, consider paying it yourself.
- Preserve your No Claim Bonus to get discounts on renewals.
10. Not Following Up on Your Claim
Why is it a mistake?
Some claims get delayed because policyholders do not actively track the status.
How to avoid it?
- Regularly follow up with your insurer via phone, email, or online portal.
- Keep a record of all communication with your insurer.
- Ask for an estimated settlement timeline.
How to Ensure a Hassle-Free Car Insurance Claim?
To file a successful car insurance claim, keep these key takeaways in mind:
✔ Report the claim immediately within the insurer’s timeframe. ✔ File an FIR if required, especially for theft or third-party damages. ✔ Provide accurate information and avoid false claims. ✔ Wait for the surveyor’s inspection before repairing your car. ✔ Keep all necessary documents ready for a smooth process. ✔ Use network garages for cashless claims. ✔ Understand policy exclusions to avoid unnecessary disputes. ✔ Follow up on your claim regularly to ensure timely settlement.
Final Thoughts
Filing a car insurance claim should be a straightforward process, but mistakes can lead to delays, lower payouts, or claim rejection. By staying informed and following this DIY guide, you can ensure a smooth, hassle-free claim experience.
Avoid these common mistakes and maximize your chances of getting quick and fair compensation from your insurer.
Have questions about car insurance claims? Drop a comment below!
