Yesterday at our center in sector 54, Gurgaon. We have a Toyota Fortuner with a cracked front windshield. The owner asks for the windshield price and then start calling his friends. After the long discussions, we guessed about cost, he asks about insurance for replacing windshield glass. He looks a bit confused, but finally, after a discussion with our center manager, he opted for a cashless insurance claims facility.
He was confused because he didn’t know how much replacing a windshield cost without insurance. He has bought the car 4 years ago and hasn’t claimed any damage in the last 4 years. and couldn’t decide should he use his insurance to cover the windshield replacement cost?
The reason why I am discussing this incident is that because it is a really good question and the answer to his question is tricky. There are many variables in this question. He was confused because one of his friends suggested using insurance for replacing windshield cost. While others told him that he should go for cash as it ultimately increases his premium in the next renewal.
As an expert for car windshield replacement and being someone doing car windshield replacement under insurance claims for the past 6 years, we suggested him not to opt for the claim. But it is after due diligence and giving him a clear idea about the cost to replace a windshield without insurance.
How much does it cost to replace a windshield without insurance?
For a cash job, its really simple total cost needs to be paid by the customer and hence he needs to pay ₹14800 for replacing a genuine Toyota Fortune windshield glass.
To get a clear idea about the insurance claim you should consider a few more things like,
- When should you use your insurance to cover windshield replacement cost?
- How much is the deductible?
- Does it affect your insurance premium?
Let’s try to answer his questions.
When should you use your insurance to cover windshield replacement cost?
Though you can claim any kind of windshield damage, you should make some quick calculations before you decide to file an insurance claim. You should check the cost of replacing windshield without insurance, your deductibles (compulsory clause and depreciation cost), and your No Claim Bonus (NCB).
Experts advise not to use insurance claims for minor damages if your calculations show that you will have to pay more in cash than you should go for a claim.
Let’s check how much will it cost if he would have decided to cover windshield damage through insurance claim.
Total Cost (if claimed through insurance) = Compulsory clause (₹ 2000) + Deductibles (₹ 742) + Loss of NCB 35% (₹ 16787) = ₹ 19529
Total difference in Cash and Insurance claim= ₹(14800 – 19529)= – ₹4729
The above calculation shows that if he uses insurance claims for windshield damage, he would be in loss. As his current No Claim Bonus is more than the cost of windshield replacement.
How much is the deductible?
The deductibles in your motor claim policy include the compulsory clause, depreciation, and voluntary clause.
The compulsory clause for cars up to 1500 cc engine is ₹ 1000 and for above 1500 cc, it’s ₹ 2000. You may have noticed in the above calculations we have deducted ₹2000. Toyota Fortuner has an engine of 2500cc.
Depreciation includes 50% cost of all rubber parts and PU sealant used as adhesive. For small cars, it’s ₹371 and for cars with the large windshield glass is ₹742.
The voluntary clause is the amount you have agreed in your policy for any claim, it’s mainly to reduce the premium and is personalized by the insurer as per insured requirements.
Can deductible be waived?
The compulsory clause and voluntary clause is not waived by the company. On the contrary, this clause is in your policy to discourage the insured from filing a claim for small losses. The compulsory clause is in tune with the amount of loss that your insurance company expects you to claim.
But depreciation can be waived if you have a comprehensive cover. Most insurance companies offer comprehensive policy cover for the first 2 years for a new car.
Does it affect your insurance premium?
An insurance claim can affect the premium in 2 ways. First, once you claim a loss irrespective of the insurance company or amount of damage, your No Claim Bonus becomes zero and you need to pay a higher premium in the next policy renewal.
Like in the above case Fortuner has a 35% NCB which amounts to be ₹16787. If the customer chose to go for a claim, in the next renewal his discount against NCB becomes zero.
Secondly, your insurance company may increase your premium if they find that you are filing repetitive claims. Though in case of a third-party claim where you are not at fault, the insurance company generally ignore the case, once they are sure that due to your driving or any other fault you are filing repetitive claims, they can increase your premium amount. In extreme cases, the insurer can also reject to renew your policy.
We have discussed this so that it may help you make up your mind in case you have a broken windshield. You can also ask your workshop for their expert advice to use insurance for replacing windshield glass before making a final call.