Planning To Buy Cashless Vehicle Insurance? Read This Blog First!

Imagine your vehicle meets with an accident and incurs severe damages. You take the vehicle to the nearest garage, only to find out that the repairs will cost a large amount. It may be quite difficult for you to arrange this money at the moment. However, it is vital that your vehicle gets repaired at the earliest. You can raise a claim on your vehicle insurance online, but that would still require you to pay the amount now. It is in situations like these that cashless vehicle insurance can be of immense help to you.

What is cashless vehicle insurance? 

You may have heard of cashless health insurance. Well, cashless vehicle insurance works similarly. When your vehicle undergoes repairs due to damages that are covered by the insurance policy, the expenses for the same are paid majorly by the insurer. The insurer deals with the garage directly and settles the bill with them. You have to simply let your insurer know that you would like to opt for the cashless service.

This is in contrast to the reimbursement method, in which the policyholder has to pay the garage the dues, for which they are reimbursed later by the insurer.

Cashless vehicle insurance does not cover all the expenses

It is to be noted that cashless vehicle insurance does not cover all the expenses that will be incurred during repairs. Though this may change from insurer to insurer, policyholders may most likely have to pay inadmissible charges and the deductible. For the uninitiated, the deductible is the out-of-pocket expense as decided in the insurance contract that the policyholder has to pay first before the insurer takes over the remaining expenses.

Cashless services can be availed at network garages only 

Insurance companies have associations with certain garages – it is only for repair at these garages that you can raise a cashless vehicle insurance claim. These garages are called network garages. Insurance companies that have a larger number of network garages spread out around the country are usually favoured. Ideally, an insurer that has around 4000+ network garages is to be preferred. When you are travelling with your vehicle, especially with a limited amount of money to spend, this cashless service can be a boon for your budget.

How to raise a claim for cashless vehicle insurance?

  1. When your vehicle suffers damages covered by your vehicle insurance policy, take it to the nearest network garage.
  1. Ensure that you are equipped with all the details and proofs necessary to substantiate your claim.
  1. Inform your insurer or their representative and tell them about the damages, specifying that you would like to raise a cashless claim.
  1. Fill the cashless claim form.
  1. Cooperate with the surveyor sent to assess the damage to your vehicle.

Post this, the dealings will be taken forward by the garage and the insurer. Once you are informed that your claim has been approved, the repairs will start and the payment will be handled by your insurer. It is at this stage that you will be asked to pay for your share of the repairs.

You can raise a claim for cashless vehicle insurance online as well.

Do bear in mind that all the exclusions of a regular vehicle insurance policy are applicable for cashless policies as well. Read the policy wordings carefully and become an informed policyholder to have a smooth insurance experience.