All about cashless car insurance policy

Most car owners consider car insurance to be an essential expense. While having third-party liability insurance is mandated by the Government of India, as per the Motor Vehicle Act, 1988, having comprehensive car insurance coverage for your prized possession is recommended. The benefits of having comprehensive car insurance are many, and one of the most important advantages is that such a policy allows you to make cashless car insurance claims.

Importance of cashless car insurance

Even with an appropriate car insurance policy, many policyholders worry about the financial hassles of paying the repair bills and the paperwork that may come when making a claim. Thankfully, these days almost all car insurance companies offer cashless car insurance. The aim is to provide a great experience to the policyholder, so they don’t think of claiming an arduous and time-consuming process. The convenience and security associated with cashless car insurance are thus essential not just for the customer but also for the insurer.

Let us take a quick look at the benefits you can expect when you opt for cashless car insurance:

1) You can get your car repaired without having to burn a big hole in your pocket
2) Cashless claims procedures are elementary and straightforward
3) Most network garages are trusted and reliable brands, and there is no probable risk of fraud/ faulty repair
5) Major car insurance companies have network garages throughout the country
5) As compared to a reimbursement claim, cashless claims are far more hassle-free and quick

How does cashless car insurance work?

Let us take a look at how cashless car insurance works:

• Your car insurer has collaborations with several garages/ chains of garages throughout the country.
• These garages, where you can avail of this benefit, are called network garages.
• After an accident, you take your car/ get it towed to a network garage.
• A company surveyor inspects your car, and the repair cost is estimated. In case of a significant accident, the surveyor might inspect the site of the accident.
• Once the estimation and verification are complete, the repair work begins.
• The insurance company directly settles your bills with the garage.
• When you come to collect your car from the garage, there is minimal paperwork.
• You pay only for the uncovered expenses, as per your policy.

Things you need to know about cashless car insurance:

1) Not every garage is a network garage
You need to keep yourself updated with the network garages of your car insurance company so that you can take your car there in your time of need. Make sure you know the network garages in your vicinity, or you can check for them on the company website.

2) Cashless car insurance doesn’t mean you do not pay anything.
You need to remember that being cashless doesn’t mean no cash is to be paid. Your car insurance company will pay a major chunk of the bill, but the policyholder will bear the compulsory deductibles, depreciation, and other uncovered expenses.

Conclusion:

The trauma of a motor accident can be severe, both emotionally and financially. At such a time, worrying about the car repair, and running around arranging money for the same can be further frustrating. And this is where one truly realises the advantage of having cashless car insurance.