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Claim Your Car Insurance at The Right Time

Posted At June 21st, 2019

"Relax, I can make insurance claims", that's what you must have in mind when your car's rear bumper is a little dented because it was hit by another vehicle on the road or your child scratches a little of your car's body in his small bicycle handlebar.

However, do you know, sometimes making car insurance claims may not be the right step.

How could it be?

No Need Claim

Consider the following situations and conditions that make your decision not to propose a car insurance claim is the right step.

Situation 1: Repair costs are lower than your own risk (OR) costs

The own risk cost or deductible for car insurance claims is IDR 300,000 per incident. So, when your car is lightly damaged with a value of repairs that can be predicted below that OR and even you can do repairs yourself at home without having to go to the workshop then it is better to undo your intention to make a claim to the insurance.

There is some minor damage to the body of the vehicle that you can repair yourself using everyday household appliances so that you don't have to pay anything to make these repairs.

Situation 2: Repair costs are borne by a third party

If the damage to your car is due to the negligence of the driver of another vehicle or other party and that can be proven validly, the compensation fee for your vehicle repair can be billed to that third party. Maybe it needs a slightly complicated negotiation process.

However, did you know, you can submit the right to prosecute the third party to the insurer so that you don't have to bother thinking about the negotiation process for compensation.

Situation 3: Repair costs are lower than No Claim Bonus (NCB)

The insurance company will give appreciation to their customers who have never made claims. The form can be a premium discount when renewing insurance or returning a certain amount of cash.

As an illustration, your annual car insurance premium is IDR 5,000,000 and the insurance company gives NCB in the form of 20% discount on your car insurance premium for renewal next year. Next, you will get a premium discount of IDR 1,000,000 the following year if you do not make a claim.

So, if it turns out that the value of your claim is lower than the premium discount from NCB, then you better not make a claim to get your NCB.


You need to pay attention, insurance companies must record your insurance claim history and use these records for consideration in deciding whether your risk profile is good or bad.

If you claim too often it will make your risk profile bad. This can have an impact on increasing the value of premiums or even refusing to guarantee your car the following year.

Therefore, it is time for you to be wise by knowing when the right time to submit your car insurance claim.


Bandingin.com !!! can help you make smart and accurate decisions to protect yourself, your family, and your future.