Cashless Car Insurance

What Is Cashless Car Insurance Policy?

In motor insurance to make the entire claim process more hassle-free insurance providers offer cashless compensation for repairs. This is done by insurance companies that have tie-ups with certain garages (car repair shops). At these partner garages, an insurance company settles a car insurance claim in a cashless manner, i.e, it settles the repair bill directly with the garage. Thus, the policyholder is not required to pay anything to the garage for the repairs of their car except their own liabilities.

In case of a mishap, you can inform your car insurance company and get your car transported directly to one of these cashless garages. Here the car will be inspected and repaired and the cost communicated to the insurance provider all without bothering you about it. Additionally, these places ensure a high quality of service as well as spare parts which ensures you have one less thing to think about.

While buying a car insurance policy, you must check how many cashless garages are a part of the insurer’s network. The wider the network of cashless garages, the better it is.

Benefits of Cashless Car Insurance Policy

When you get your four-wheeler repaired at a cashless garage, you enjoy the following benefits:

1. Hassle-free Experience

Since it is a cashless garage, i.e. a garage which is a part of the insurer’s network, you can enjoy a hassle-free claim process as everything will be handled by the insurer itself. Policyholders do not even have to pay for the repair or replacement done at the cashless network garage.

2. Priority in Service

The partner garages of insurance companies give priority in service to the insurer’s policyholders. Thus, at these network garages, you can expect to get speedy service. As the network garage gets in touch with the insurer directly, the process from payment to repair completes without hassle.

3. Quick Claim Settlement

At cashless garages, the claim settlement happens quickly as compared to reimbursement claims which may take 7-10 days for settlement. Since, the insurance company refers to the surveyor’s report to approve the claim after which repair work starts, the process is bound to settle quickly.

4. Guaranteed Quality Service

Every insurance company ensures that good quality service is given to its policyholders. To ensure such quality service, insurers tie-up with the top-notch network garages or workshops which fulfill their quality repair criteria. With this process, the policyholders tend to get better repair service and overwhelming satisfaction.

5. Transparency

Since the insurance company’s surveyor is directly involved in the claim insurance process by visiting the network garage from beginning, the entire settlement process becomes highly transparent and the insured person as well as insurance company are assured of no fraud and ensures correct billing, as the repair estimates are sent before the commencement of any repair work.

Overall, it can easily stated that the cashless car insurance can make your claim settlement process quite easy and quick. It is a much more convenient, easier and transparent process than reimbursement process, but it also provides a higher amount of customer satisfaction with better service and repair quality offered by authorized car garages.

How To Make A Cashless Car Insurance Claim at A Network Garage?

To make a claim at a cashless garage you can follow the instructions below:

Step 1: If there is any kind of damage to your car, then inform your insurance provider regarding the same as soon as possible. Make sure to inform them regarding the most damaged parts. Later, tow or drive your car to the nearest garage listed by your insurance provider.

Step 2: Complete the policy document and get it approved for cashless repair. Also, you might be required to pay for depreciation on some parts of your car as well as for the deductibles.

Step 3: After the repair work is over, an invoice would be raised on behalf of the garage for the insurance company alongside the necessary documents. Once, assessing and verifying the documents, the insurance company would release the payment.

Step 4: Only the damages covered under the insurance plan would be paid by the insurance company. Any extra repair cost needs to be met by the policyholder.

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Best Car Insurance Companies Offering Cashless Claim Settlement Facility in India

Find below the top motor insurance companies in India providing cashless claim settlement for car/vehicle.

Car Insurance Company

Claim Settlement Ratio

Cashless Network Garages

Acko Car Insurance72.68%2,000+
Bajaj Allianz Car Insurance91.23%4,000+
Bharti AXA Car Insurance88.49%5,200+
Chola MS Car Insurance85.86%7,100+
Edelweiss Car Insurance70.59%1,000+
Future Generali Car Insurance88.56%2,500+
Digit Car Insurance85.76%1,400+
HDFC ERGO Car Insurance89.48%6,800+
ICICI Lombard Car Insurance87.84%5,600+
IFFCO Tokio Car Insurance96.44%4,300+
Kotak Car Insurance81.70%1,300+
Liberty Car Insurance87.48%4,300+
Magma HDI Car Insurance75.66%4,000+
National Car Insurance80.50%3,100+
Navi Car Insurance53.10%900+
Reliance Car Insurance83.81%3,800+
Royal Sundaram Car Insurance94.07%4,600+
SBI Car Insurance91.74%16,000+
Shriram Car Insurance62.84%2,000+
Tata AIG Car Insurance91.80%5,000+
New India Car Insurance92.23%3,000+
Oriental Car Insurance93.16%3,100+
United India Car Insurance84.17%3,100+
Universal Sompo Car Insurance92.45%3,500+

(*Claim Settlement Ratio For FY 2018-2019 As Per IBAI’s General Insurance Claim Insights Handbook For Policyholders - 4th Edition)

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Cashless Car Insurance Policy FAQs

  • Is there any minimum amount that the policyholder needs to pay at the time of car repair at a network garage?

    The policyholder need not pay anything for the repairs of the car at a network garage except for the necessary deductibles and for the depreciated value of the parts of the car.

  • Since the policyholder does not pay at the garage anything, do these garages take longer time to repair?

    No, at the network garages the policyholder can expect a speedy service as partner garages of the insurance companies always give first preference to insurance company’s policyholders.

  • Is it necessary to visit a Cashless Garage?

    If you have a cashless garage nearby then you can visit there but it is not mandated by the insurance company that the policyholder should always go to a cashless garage.

  • Which is more time consuming - visiting a Cashless Garage or getting the repairs done and then asking for a reimbursement?

    The claim gets settled faster at a cashless garage in comparison with a reimbursement claim. Reimbursement generally takes 7-10 days.

  • Will I get insurance cover for accessories if I visit a cashless garage?

    No, the insurance company is liable to pay only for the damages that are covered under the policy. Any repairs cost incurred on the accessories or parts that are beyond the scope of policy has to be borne by the policyholder.

  • When does the Insurance Company make payment to the network garage?

    After the repairs are done the network garage raises an invoice and sends it to the insurance company along with the necessary documents.

  • What is the benefit of visiting a Cashless Garage?

    One of the major benefits of Cashless Garage is that it does not require prolonged paperwork to file claims assuring quality repair work along with the cashless claim settlement.

  • How do I locate a Network Garages in my locality?

    The insurance company provides a list of authorised service stations on their official website. Also, at the time of purchasing the policy this information is provided to the policyholder.

  • After the completion of repairs at a Network Garage, is a guarantee given?

    Yes, when the repair is done at an authorized garage, the insurance company offers a guarantee of the repair work which lasts for a period of three years or more.

  • What are Deductibles?

    The deductible is a part of the insurance expense that the policyholder has to pay before the insurance company pays for the rest. There are two types of deductibles namely compulsory and voluntary.

  • What is cashless garage in car insurance?

    Cashless garage in car insurance refers to the garage with which an insurance company has a tie-up for providing a cashless claim settlement facility.

  • How does cashless garage work?

    When you visit a network garage of your insurance company, the repair bill is settled directly by the insurance company. Thus, you need not pay anything except the deductibles and depreciation.

  • How to find top car insurers who offer cashless claims at network garages?

    You can visit our platform to know the best insurers offering cashless claims at network garages.

  • What are the benefits of cashless garages in car insurance?

    Cashless garages in car insurance offer various benefits. Some of them are as follows: Easy and faster claim settlement, speedy customer service etc. The policyholder does not have to pay huge costs of repair/damages out of his pocket.

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#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.