Car accidents are unpredictable. Hence, finance experts across the globe recommend you build an emergency fund that can support you for at least six months even if you lose your source of income. Though a lot of people have heard this financial advice before, not many pay heed to this suggestion. As a result, most people do not have readily available cash to repair the damages that are caused to their vehicle in an accident. This is where a cashless car insurance policy can be your knight in shining armour.

To help you get a better idea, here is everything that you need to know about cashless car insurance:

If you have a cashless insurance policy, the insurer pays the garage directly for repairing your car. Hence, these policies help you fix the damages caused to your vehicle in an accident even if you do not have enough money to pay the mechanic. You can only raise cashless claims if you have a comprehensive car insurance policy.

Do note that though you do not have to bear the entire cost of repairing your vehicle, you still must pay an amount equal to the deductibles and depreciation associated with your cashless motor insurance policy. Furthermore, you can only enjoy this facility if you get your car repaired from one of the network garages of your insurance provider.

Follow the steps listed below to raise a cashless insurance claim:

• Step 1

  After getting into a car accident, the first thing you need to do is call the police and file an FIR regarding the incident.

• Step 2

  Inform the insurance company about the accident and tell them that you wish to initiate the cashless claim settlement process.

• Step 3

  The insurer will then tow your car to one of their network garages to assess the damages inflicted on your vehicle. Do not move the car from the accident spot until the insurer has given you the consent to do so.

• Step 4

  Submit your claim application form along with the FIR and all the evidence you have collected of the accident. Photos, videos, and witnesses are a few examples of the evidence that insurers accept.

• Step 5

  The network garage will estimate the cost of repairs and submit the same to the insurer.

• Step 6

  The insurer will then process your application and approve your request based on the genuineness of your claim.

• Step 7

  If your claim is approved, you will need to pay the compulsory deductible and the depreciation cost of your vehicle to the insurer.

• Step 8

  Once the above steps are completed, the insurer will intimate the garage to commence the repair work.

• Step 9

  The balance amount required to repair your car is directly paid to the concerned network garage by your cashless car insurance provider.

• Step 10

  Once your car is repaired, you can take its delivery from the garage at your convenience.