Cashless Car Insurance Claims Explained
Updated On Oct 14, 2023
Cashless Car Insurance Claims Now Made Easier
What is a Cashless Car Insurance Claim?
A cashless car insurance refers to a car insurance claim in which the insured does not need to pay anything out of their own pocket during the repairs of their car for damage covered by the car insurance policy, other than the deductibles and depreciation. In the case of a cashless car insurance claim, repairs bills are sent directly to the insurance company and the policy holder does not need to make any payment for the repairs.
When is a Cashless Car Insurance Claim Applicable?
A cashless car insurance claim is a huge convenience. However, it is only applicable if the car is sent for repair to a garage that is a part of your insurance company’s network. Network garages are the garages with which the insurance company already has an agreement with the concerned garage regarding the cashless policy and that the garage would send the relevant bills to the insurance company.
What Do You Need To Pay During A Cashless Claim?
Even in the case of a Cashless car insurance claim when the repair bills are settled directly by the insurance company, there are some costs that you may be liable for.
Let’s read all about these:
Deductibles refer to a certain amount that you as the policyholder would agree to pay at the time of claim, when purchasing the policy. It is of two types. Compulsory deductibles are essential and you would have to pay the compulsory deductible at the time of raising a claim, including a cashless car insurance claim. Secondly, voluntary deductibles can be opted for to increase the deductible amount and fetch you a discount in the premium. However, this is not advisable as it would increase the amount you have to pay at the time of raising a claim.
Depreciation refers to the difference between the cost of repair and the reduced market value of your car part. Without a zero depreciation add-on cover, you would have to pay for the depreciation amount at the time of claim as your insurance company would only be compensating you for the depreciated value of the parts that are to be repaired.
Cashless car insurance claim refers to a claim in which all the bills are sent directly to the insurer. You would only need to pay the deductibles and depreciation amount and would not need to pay any other costs up front at the garage.
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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.