Why is Cashless Car Insurance Preferred These Days?

Buying car insurance has become quick and easy with the advancement in the internet and companies that are simplifying the process of buying car insurance online. One such feature that has simplified the car insurance claim process is a cashless car insurance claim. It is crucial to reflect on the idea and features of cashless car insurance so that you can get a hassle-free experience in case of unexpected events like accidents.

This article will help you understand cashless insurance claims, their advantages, and the charges that you have to bear in case you file a cashless claim.

What is Cashless Car Insurance?

Car Insurance is helpful when your car meets with an unfortunate accident. The policyholders then file for a claim amount that can be availed in two ways – through cashless or Reimbursement claim. Under a cashless claim, the policyholder does not have to pay for the cost of repairs. The amount is borne by the insurer.

A cashless car insurance claim can be availed if the policyholder sends the car to one of the company’s network garages for repair.  The claim amount is directly transferred by the insurer to the garage.

Despite being cashless insurance, it doesn’t cover 100% of the claims. The policyholder must pay a small part of the claim amount in deductibles and depreciation.

However, if you choose to send your damaged cars for repair to a garage that doesn’t come under the company’s network, the policyholder pays the outstanding amount first and then gets it reimbursed.

Deductibles in Car Insurance

The deductible is an amount paid by the car owner when filing a claim. It is classified into two types – compulsory and voluntary. The compulsory deductible depends on the engine’s cubic capacity, while the voluntary deductible is chosen by the car owner voluntarily. The voluntary deductible affects the car insurance premium. If the voluntary deductible is high, the insurer pays a lesser premium for the policy.

What are the Perks of a Cashless Car Insurance Policy?

There are a lot of perks for opting for cashless four-wheeler insurance for your car. It provides complete peace of mind and helps you experience seamless claims in case of unforeseeable circumstances.

  • Hassle-free experience

Having cashless four-wheeler insurance brings you mental peace because the network garages help you enjoy a hassle-free claim process. The policyholders are free from paying for the repairs or damages at the network garage. However, the compulsory deductible has to be borne by the car owner.

  • Priority in service

The partner garages help car owners with quick services and provide value to the policyholders. It helps to escalate the services faster as the network garage directly gets in touch with the insurer.

  • Quick claim settlement

The reimbursement claims for your insured car may take up to 10 days for the reimbursement claim settlement. The policyholder has to bear the expenses beforehand if you are filing a reimbursement claim, while a cashless insurance policy helps settle claims quickly. The company asks for the surveyor’s report to give approval for the claim, after which repair work begins.

  • Quality services

With quality service comes a better customer experience. Every insurer ensures that the service is provided to its policyholders is of the highest quality. The insurance companies tie up with top network garages or workshops that provide quality repairs to the policyholders. In this process, the policyholders receive better repair services and a satisfactory experience.

  • Transparency

Cashless insurance ensures transparency throughout the claim settlement process of the insured car. Before work commencement, the vehicle undergoes thorough inspection at the cashless garage, and the insurance company receives a quote for the work. The company’s surveyor is a part of the claim insurance process from the start, which makes the process extremely transparent.

How is Cashless Insurance better than Reimbursement Insurance?

The reimbursement claims are processed after the policyholder gets the car repaired. It means that the car owner bears all the costs of repairs or treatment of injuries. They then collect the bills and necessary documentation for raising a claim with the insurance company. The verification of statements adds up to the extra time and often delays the payment. However, cashless insurance limits all the processes and makes it hassle-free.

Under cashless claims, the cost of repairs and injuries is borne by the insurer. The bill is settled directly with the network garage. The insured has to pay the voluntary deductible and the cost of depreciation if any.

What are the Expenses Borne by Customer in Cashless Car Insurance Policy Claim?

  • Depreciation: The car owner bears the depreciation cost as they have already used the car parts for a brief period. It makes them liable to pay for the cost of depreciation of the damaged parts.
  • Consumables: Consumables are the parts that need replacement regularly (e.g., nuts and bolts, engine oil, lubricants, etc.). However, if the insured car owner has bought a consumables cover, the insurer will bear this cost.
  • Deductible: The deductibles are paid by policyholders when they raise a claim. These are introduced by insurers to encourage policyholders to drive safely.

Wrapping Up

There is undoubtedly a need for consumers to opt for cashless claims over reimbursement claims. A cashless four-wheeler insurance policy not only provides complete peace of mind but also saves from the hassles of getting your bills approved in case of claims. The process is transparent, quick, and suits both the insurance company and the car owners. Car insurance companies in India like Tata AIG offer cashless claims to help you process car insurance claim instantly.