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Losses occur by claiming insurance for less value

As per government laws, each vehicle should have an insurance policy. Insurance is something that will protect you from all the financial hammering. It is like a risk management plan for all the uncertain losses which may occur in the future. Nowadays, the price of part of the vehicle has increased high, so having insurance is like a savior for anyone. Insurance is a must for both used cars in Yakima and new cars. If you are in the assumption that for every small repair you will claim the insurance then it is not at all a good thought as it will affect you in long run. Let us see some point son why it is not a good idea.

  • The first thing which you will miss by utilizing insurance for the small amount is the no claim bonus. The no-claim bonus is the reward that is given to customers who have not utilized their insurance for the entire year. Whatever amount you receive as the bonus that you can use in the next insurance. That means you will get the deduction in the next insurance premium. If you continue the same the then each year the discount rate will increase. So next time when you think about claiming insurance stop and re-think if it is necessary.

  • The deductible is categories in insurance, which can make the owner, think twice before claiming insurance. There are two types of deductibles the first one is the compulsory deductibles in this type of category the customer has to make a percentage of payment towards the repairs done. The second type is the voluntary deductibles in which the owner comes forward and promises the insurance company that he will be bearing some part of the repair cost when he claims for the insurance.
  • The more the number of insurance claims more the value of the car decreases. It will affect you when you are reselling the car. The details about the different claims which you have made will be mentioned in the document.

Conclusion

Hope this information will help you to understand why you should not claim for small values.

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