Car insurance is mandatory in India, but most car owners don’t really understand what their policy actually covers. The biggest confusion is around scratches. Are scratches covered? Can you claim insurance for small dents? And which type of insurance should you even buy?
If you’re buying a new car or renewing your policy in 2025, this guide will explain car insurance types in simple terms and clearly answer whether scratch claims are covered or not.
Why Car Insurance Is Important
Car insurance protects you financially from accidents, damage, theft, and legal liabilities. Without insurance, even a minor accident can result in heavy repair bills or legal trouble. However, the level of protection you get depends entirely on the type of insurance you choose.
Types of Car Insurance in India
Third-Party Insurance
Third-party insurance is the minimum insurance required by law. It covers damage or injury caused to another person, vehicle, or property. It does not cover any damage to your own car.
If your car gets scratched, dented, or damaged in an accident, third-party insurance will not pay anything.
Comprehensive Insurance
Comprehensive insurance offers much wider protection. It covers third-party liability and also damage to your own car due to accidents, fire, theft, floods, vandalism, and natural disasters.
Scratch claims can be covered under comprehensive insurance, but only under certain conditions, which most people are not aware of.
Own Damage Cover
Own damage cover focuses only on your car’s damage. It is usually purchased along with third-party insurance. It covers accidents, natural disasters, and man-made incidents.
Scratches caused due to accidents or vandalism may be covered under own damage policies.
Zero Depreciation Insurance
Zero depreciation insurance is an add-on, not a separate policy. It ensures you get full claim value without deduction for depreciation on parts like plastic, rubber, or fiber.
For scratch-related repairs, zero depreciation is extremely useful because repainting and part replacement costs are higher without this add-on.
Does Car Insurance Cover Scratches?
The short answer is: sometimes, yes.
If you have comprehensive insurance or own damage cover, scratches caused by an accident, vandalism, or external impact can be claimed. However, normal wear and tear, small surface scratches, or damages caused due to negligence are not covered.
Minor scratches that don’t require part replacement are often not recommended for claims, as the cost may be lower than the deductible you must pay.
When Scratch Claims Are Accepted
Insurance companies may accept scratch claims if:
- Scratches occurred due to an accident
- Damage happened because of vandalism or external impact
- Repainting or part repair is required
- You have comprehensive or own damage coverage
When Scratch Claims Are Rejected
Scratch claims are usually rejected if:
- Damage is due to regular wear and tear
- Scratches are superficial and cosmetic
- Damage happened due to delayed reporting
- You are claiming repeatedly for small damages
Things You Must Know Before Claiming for Scratches
Every policy has a deductible, which is the amount you must pay from your pocket. Claiming for minor scratches can increase your future premium and reduce your No Claim Bonus.
For small cosmetic damage, it is often smarter to repair the scratch yourself instead of filing a claim.
Is It Worth Claiming Insurance for Scratches?
Claiming insurance for scratches makes sense only if the repair cost is significantly high. For minor scratches, claiming insurance may result in higher long-term costs due to loss of No Claim Bonus.
Many experienced car owners avoid claiming insurance for small scratches and save claims for major damage.
Choosing the Right Insurance in 2025
For new cars, comprehensive insurance with zero depreciation add-on is highly recommended. For older cars, basic comprehensive insurance without expensive add-ons may be sufficient.
Your decision should depend on car value, usage, and repair costs.