What Is Cashless Car Insurance Policy?

Imagine you have a car accident and don’t need to pay anything upfront for repairs. Sounds unbelievable, right? But there’s a new kind of car insurance that does just that.It saves you from paying big repair bills out of your pocket and then waiting to get reimbursed.This modern insurance offers convenience and peace of mind, getting you back on the road quickly.Curious about how it works and why it’s so helpful for car owners? Keep reading to find out more about this hassle-free insurance solution.Table of ContentsWhat is Cashless Car Insurance Policy?Cashless car insurance means you don’t have to pay for car repairs upfront after an accident. Instead, your insurance company directly pays the repair shop.This way, you avoid the hassle of paying out of your pocket and waiting for reimbursement.Here’s how it works with a simple example –Imagine you’re driving and have an accident. Your car is damaged and needs repair. With cashless car insurance, you don’t need to worry about finding the money for repairs.1. First, you inform your insurance company about the accident through a phone call, app, or website.2. The insurance company sends a surveyor to check the damage. Once approved, the repair process can begin.3. You take your car to a garage that is part of the insurance company’s network. These garages have agreements with your insurer to provide cashless services.4. The garage repairs your car. Since they are partnered with your insurer, they handle the payment directly with them.5. After the repairs, the insurance company pays the garage directly for the covered costs. You might only need to pay a small amount if there are any extra charges not covered by your policy.For example, suppose your car’s bumper and headlights are damaged in an accident. The repair cost is 40,000 INR. With cashless insurance, you take your car to a network garage, the surveyor approves the repairs, and your insurer pays the garage 40,000 INR directly. You might only need to pay a small amount for any non-covered charges.Related – What Is Zero Depreciation Car Insurance?Benefits of Cashless Car Insurance1. You don’t have to pay for repairs out of your own pocket. The insurance company directly pays the garage, so you don’t need to worry about finding money for repairs.2. It’s very convenient. You just take your car to a network garage, and the insurance company handles everything. This saves you time and effort in finding a good repair shop and managing payments.3. Repairs are done faster. Network garages prioritize your car because they work with the insurance company, helping you get back on the road quickly.4. Network garages are approved by the insurance company, so they meet quality standards. You can trust that the repairs will be done well and with genuine parts.5. The process is clear and simple. From reporting the accident to getting your car fixed, each step is simple, and you stay informed throughout.6. There is minimal paperwork compared to traditional insurance claims. The insurance company and the garage handle most of the documentation, making it easier for you.7. You don’t have to worry about the cost of repairs, giving you peace of mind. You can drive knowing your insurance will cover you in case of an accident.8. Cashless insurance can be cost-effective. Insurance companies often get better rates from network garages, which can lower repair costs.Related – Best Car Insurance Companies in IndiaHow To Claim Cashless Car Insurance?1. After the accident, contact your insurance company. You can call them, use their app, or go to their website. Give them all the details about the accident.2. The insurance company will send a surveyor to check the damage to your car. This can be done at the accident site or at the garage where you take your car.3. If your car can’t be driven, arrange for it to be towed to a network garage. Some insurance policies include towing services.4. Take your car to a garage that is part of the insurance company’s network. These garages have agreements with the insurer to provide cashless services.5. The surveyor inspects the car and makes a report. The insurance company reviews and approves the repairs based on this report.6. The network garage starts fixing your car. They work with the insurance company to cover the costs and repair work needed.7. If more repairs are needed, the garage will get approval from the insurance company and keep you updated on the progress.8. Once the repairs are done, the insurance company pays the garage directly for the covered costs. You might need to pay any deductibles or costs not covered by your policy.9. After payment is settled, you can pick up your car from the garage. Make sure to check the repairs before leaving.Things to Keep in Mind1. This is what you pay before insurance helps. Know your deductible amount.2. Your car’s value decreases over time. Insurance might only cover its current value, not what you paid.3. Check how much your insurance will pay for repairs or replacements.4. Understand what your insurance covers and what it doesn’t.5. Save all accident and repair documents.6. Stay in touch with your insurer and the repair garage.Remember, you might still need to pay some costs yourself, like deductibles and depreciation.Deductibles are what you pay before insurance kicks in, and depreciation is the decrease in your car’s value over time.ConclusionIn short, Cashless car insurance makes repairs easy after an accident. You don’t pay upfront, the insurance company pays the garage directly. This saves time and hassle, ensuring quality repairs.