Cashless car insurance is one such advanced feature that motor insurance companies offer to save your time and effort. Read on to know more about the cashless car insurance policy.
A cashless car insurance policy gives you the benefit of getting your car repaired without paying anything from your own pocket. Under this type of car insurance, the insurer directly settles the claim amount on your behalf with the service provider/ garage.
Cashless car insurance is a facility provided by a car insurer. They have tie-ups with several garages, known as network garages, across the country. You can get your car repaired from these network garages and the insurer will pay for all the expenses incurred on repairs (excluding deductibles, depreciation, and consumables).
Before we move forward, let’s understand the exclusions of cashless car insurance in detail.
Not every expense will be paid by your insurance company under your cashless car insurance policy. There are some expenses, which you will have to pay at the time of raising a claim for cashless car repairs. They include-
1. Depreciation- It is the gradual decrease in the value of the car and its parts with time. When you file a claim, the insurer deducts this depreciation cost before making the payment. Similarly, your insurer will pay for the repair expenses of your damaged car, excluding its depreciation cost, unless you have a zero depreciation add-on cover
2. Deductibles - It is an amount that needs to be paid by the insured car’s owner at the time of claim settlement. Deductibles can either be compulsory or voluntary. Compulsory deductibles have to be mandatorily paid by you based on the cubic capacity of your insured car’s engine. In the case of voluntary deductibles, you voluntarily agree to pay the deductible amount to decrease the car insurance premium amount. Hence, your insurer will not pay for deductibles during the cashless settlement of your claims.
You May Also Read: Deductibles in Car Insurance
3. Consumables - It includes materials like fuel-filter, nuts-bolts, screws, grease, and oils that are consumed for the repair of the car. The cost of consumables will not be covered unless you have a consumables add-on cover
Cashless claims have become everyone's preferred choice under a car insurance policy. Here are some benefits of a cashless car insurance policy-
To avail service at partner or network garages on a cashless basis, follow the below steps to raise a cashless car insurance claim-
You May Also Read: Importance of Cashless Garages in India
The list of network garages of your motor insurance company is provided with your policy documents. You can also find the list of garages on the insurer website. To avail of cashless repair services for your damaged car, you can visit the nearest network garage in your location.
However, there could be times when all network garages are out of your reach, and you need to get your car repaired urgently. In this case, you can get the car repaired even at a non-network garage, pay the repair bill and keep the bill and payment receipt carefully. Then, you can raise a reimbursement claim so that your insurer compensates you for the damages sustained by your car under your policy.
A cashless car insurance claim is a convenient and transparent mode of claim settlement for both the car owner and the insurance company. However, certain expenses are not covered under the cashless car insurance policy. Thus, you must check all the terms and conditions and then raise a claim against your cashless car insurance policy online.
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