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A Guide to Cashless Car Insurance

Wish

Written by Sumit Arora

Updated Oct 16, 2023

A cashless car insurance policy will help you avail of the benefits of a car insurance, the fastest. Read on to know more about them.

Due to the hassle-free nature of cashless car insurance policies, they are one of the most beneficial options. They allow for quick claims at the hour of need. The policyholder need not spend much out of their own pocket if they have a cashless car insurance policy.

A Guide to Cashless Car Insurance

What Is Cashless Car Insurance?

Under cashless car insurance, the insurance provider directly bears the entire charge that has been incurred against the cover provided for the car. The policyholder need not pay charges out of their own pocket, even at the initial stage. Any and all benefits that are available under your cashless car insurance can be readily availed of, directly at the time of the incident. This is powered by the wide web of network garages that are affiliated with the particular insurance company. All these affiliated network garages are available to provide you with the services that are covered under your insurance policy, in case you need them.

Steps to Make a Cashless Car Insurance Claim

The following are the steps with which you can make a claim from your cashless car insurance. Remember to file a report of the accident to the police, especially if it involves bodily injuries or the accident is of a severe nature.

1. In the event of an accident, make sure to inform your insurance provider of the incident. Your insurance provider will most likely provide towing service to the nearest network garage. Do not move the vehicle on your own unless you are instructed to do so by the insurer. 

2. Remember to not disturb the scene of the accident even after informing your insurer as a thorough inspection of the vehicle will be carried out to ensure the validity of the claim. 

3. Once the inspection report is submitted to the insurer by the network garage, your claim will be registered and processed. Make sure all details that you provide to the insurance company are accurate in order for a smooth claim settlement process.

4. All necessary repairs will be done at the network garage, following which the bills will directly be settled by the insurance provider. The garage directly gives the bills to the insurance company. 

What Does the Policyholder Have to Pay?

Although a cashless car insurance policy mostly covers all costs, the customer will only have to pay the amount incurred due to the deductibles and depreciation present in the car insurance policy in case of any incident. 

A deductible is a compulsory amount that has been set by the Insurance Regulatory and Development Authority of India (IRDAI), and it is based on the engine capacity of the car. On the other hand, depreciation costs are incurred by vehicle parts depending on the age of the vehicle. The older the vehicle, the more is the depreciation cost. This is with respect to the damaged parts of the vehicle and the cap for this amount is at 50%.

Take Away

If the car gets damaged beyond repair, the insurance provider directly pays an amount to the policyholder, which is equal to the current market value of the car. All in all, a cashless car insurance policy is a versatile insurance policy that provides rapid assistance. Insurance companies with a large number of network garages are the best for this type of insurance because they can provide prompt assistance anywhere and at any time!

Also Read: 

How To Lower Premium of Your Car Insurance?

Top Factors That Determine The Premium of Your Car Insurance Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Wish

Written by Sumit Arora

Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequenRead More

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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