Today, insurance companies give the option of cash payments even for vehicle insurance. They have an affiliation with garages or repair shops that handle insurance claims in cashless manner. It means the insurer pays any car repair bill directly to the garage and as a policyholder you are not compelled to pay anything for car repairs.

Steps of cashless car insurance process

Before understanding what benefits can you reap from cashless car insurance, let’s take a quick look as to how the process of cashless car insurance works. If you are involved in an accident, you just need to take your vehicle to a cashless option garage. Your car shall get inspected and repaired and the cost will be paid by the insurer directly. Additionally, you will get high level of service as well as replacement components for your car repairs with greater ease. You can also choose from the broad network of cashless garages to select the one that suits you best.

Simple steps in process of cashless cash insurance:

  • As you incur an accident immediately inform your insurer
  • Then submit the claim form along with relevant documents
  • Now, get your car to your chosen cashless facility garage or repair shop
  • Next the insurer will arrange for inspection and repair and keep you informed on it
  • Post verification the settlement process will be initiated
  • You may have to pay for the depreciation, deductibles and consumables incurred
  • Finally, the insurer will make payment of the repair or replacement costs making the process simple and hassle-free for you.


Remember, though the cashless car insurance process is highly beneficial and quick, there are a few exceptions that you need to keep in mind;

Depreciation – the insurer will pay for the repair expenses of your damaged car excluding any depreciation cost. Only in case you have opted for a zero-depreciation add-on- this cost gets covered.

Deductibles – the insurer does not pay for the deductibles during cashless settlement

Consumables – the insurer does not pay the cost of consumables like fuel filter, nuts, bolts, screws, grease, and oils for the car repair. Only in case you have opted for a consumables add-on- this cost gets covered.

Benefits of cashless car insurance

With cashless insurance you can enjoy the benefits of;

  • Quick claim process
  • Quality service of replacements
  • Rapid service of repairs & settlements
  • Straightforward, time-saving, and transparent process
  • Wide network of cashless facility garages to choose from
  • Complete convenience and efficiency
  • Overall satisfaction

Cashless option was a concept first introduced in the healthcare insurance, but with general insurance like car insurance plans adopting this method, it has made the process simpler, seamless and beneficial for all policyholders.

FAQs – Frequently asked questions.

Q1: Do insurance companies pay for the entire settlement in the cashless insurance facility?

Yes, the entire bill is paid by the insurance company in cashless facility, excluding the costs of depreciation, deductibles and consumables, if any. If add-ons for these are part of your car insurance plan, then these are all paid by insurer only.

Q2: Are there many cashless garage options for cashless car insurance services?

Yes, every insurer has a network of garages where you can avail the facility of cashless car insurance services and get quick and quality settlement claim for your car insurance.

Q3: Is cashless insurance beneficial for both car owner and the insurance company?

Yes, the cashless insurance facility is beneficial for both the car owner and the insurance company as the process is convenient, transparent and quick for both.

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