Car insurance policies allow you to raise reimbursement claims and cashless claims. A reimbursement claim requires you to pay the garage for the repair before receiving compensation from the insurer, whereas a cashless claim settlement sees the insurer pay the garage directly for the car repair. Cashless car insurance policies can truly prove helpful as they save you from the need of arranging for finances for car repairs. Let’s look at them in detail.

A car insurance policy that helps you to raise cashless claims is called a cashless car insurance policy. This policy allows you to get your car repaired after an accident without having to pay money to the garage for the repair work.

It is important to note that you can only enjoy the benefit of cashless claims if you get your car repaired from one of the network garages of the insurance company. You can reach out to your insurer to find out the list of network garages in your area. Additionally, even though the repair cost for your car is paid by the insurer, you are still required to pay a part of the claim. You need to pay the depreciation cost of the car parts, the compulsory deductible, and the voluntary deductible. The calculation of these costs will be explained to you by the insurance provider or agent when you buy coverage.

The cashless claims process is quite simple:

• Lodge an FIR and contact your insurer



To raise an insurance claim, you are first required to file an FIR about the accident in your nearest police station. You must also inform your insurance company as soon as you can.

• Use the tow service provided by the insurer



For easy and quick approval of your insurance claims, it is important that you do not move your vehicle after the accident unless your insurer gives you the consent to do so. Additionally, do not rush to the garage on your own, let the insurance company tow your car to the nearest partner garage.

• Pay your deductibles and depreciation cost of your car parts



Car insurances require you to pay a compulsory deductible and a voluntary deductible. The compulsory deductible is fixed by the insurance company and the voluntary deductible is set by you when you purchase the car insurance policy. On the other hand, the depreciation cost of your car is based on its usage and make and model. You would need to pay the deductibles and the depreciation cost of your car before it is repaired.

• Let the garage evaluate the damages incurred by your car



Once you and your towed car reach the insurance company’s partnered garage, the mechanic will evaluate the damage incurred by your car and provide an estimate of the cost of repair to the insurer. After your insurance provider approves the budget given by the garage; the repair services of your car shall begin. You can take the delivery of the car at your convenience once it is repaired.