Insurance is like a spare tyre. You may not require it, but not having one is not an option.

Cashless Car Insurance Policy

 4.5 / 5.0   by 2289 users
Used this product? Write a review >>

Policy Coverage

Customer Service

Claim Experience

Responsiveness

Cashless Garages

Car Insurance
  • Get both third-party cover and comprehensive cover
  • Choose from a variety of zero depreciation and roadside assistance covers
  • 3100+ cashless garages

What Is Cashless Car Insurance Policy?

The concept of cashless insurance was first introduced in the healthcare domain. With the increase in popularity of the concept, general insurance providers started offering it under their motor insurance plans. Cashless claim facility is nothing short of a phenomenon in the car insurance domain, as it brings with it a suite of advantages that the policyholder can benefit from.

Basically, it is a facility in which the car insurance provider will have tie-ups with authorised garages, referred to as network garages. The policyholder can get his/her vehicle repaired at a network garage after an accident. He/she will not be required to pay for the repair work; instead the insurer will bear the expenses on his/her behalf.

How Does Cashless Motor Insurance Policy Work?

When looking to buy car insurance, you should ideally select an insurance provider that offers cashless car insurance facility. When you buy such a policy, you can avail repair services for your vehicle at some of the best service stations in India. You also need not pay for the repairs upfront, making it a win-win situation altogether!

Here are the steps involved in availing services at a network garage:

  • The customer purchases a car insurance policy from an insurance company that has a wide network of cashless garages.
  • If the insured vehicle meets with an accident, the policyholder can choose to get it repaired at a network garage.
  • After the repairs are completed, the insurance company pays the service centre directly for the work done.
  • The policyholder will only have to pay for the depreciation of replaced car parts and the deductibles. This will be a minimal amount in comparison to the total cost of repair.

What Is Depreciation In Car Insurance?

All vehicles depreciate in value with age. In fact, the moment a spanking new car is driven out of a showroom, it is considered to have depreciated in value by 5%! The depreciation of a four-wheeler is based on a grid that is followed as a standard throughout the industry. The depreciation of a vehicle comes into play when there is an incident of a total-loss claim, such as a car theft.

In addition to the depreciation of the entire vehicle, the parts of a car depreciate at varying rates. The standard depreciation for car parts is as follows:

Car part Depreciation
Parts with high wear and tear - rubber parts, plastic components, battery, tubes and tyres, etc. 50%
Fibreglass parts 30%
Metallic parts 0% to 50%, based on the age of the vehicle

In a partial loss scenario such as a vehicle damage following a minor accident, the depreciation on car parts will be considered at the time of a claim. This, in fact, is a part of the amount that the policyholder will bear in a cashless claim scenario before the insurance company pays the remaining claim amount.

To clarify, if a fibreglass car part was replaced following an accident, 30% depreciation on the cost of the part will be paid by the policyholder.

What Is A Deductible In Car Insurance?

Deductible is another part of the claim amount that the policyholder bears at the time of a cashless claim settlement. In car insurance, deductibles are of two types:

  • Compulsory deductible - This is a fixed value based on the type of vehicle and its engine capacity. The standard guidelines on charging the compulsory deductible are set by the Insurance Regulatory and Development Authority of India (IRDA). The current rates for private cars are as follows:
Engine capacity Compulsory deductible amount
Up to 1,500 cc Rs.1,000
Above 1,500 cc Rs.2,000

The insurance company may charge a higher value for compulsory deductible if the car is very old. It should be noted that the compulsory deductible component does not have any impact on the motor insurance premium.

  • Voluntary deductible - This is an optional amount chosen by the customer at the time of policy purchase. If the customer has selected a high voluntary deductible value, his/her car insurance premium will come down. However, he/she will be required to pay that amount at the unsettling time of a claim. So, if you are a confident driver on the roads who does not raise frequent claims, it makes sense to opt for a high voluntary deductible value and save on premiums.

Steps To Be Followed To Make A Cashless Claim:

When making a cashless claim, there are a few steps you need to follow so as to avoid confusions and delays in claim settlement:

  • As soon as your vehicle is involved in an accident, ensure that you contact the insurance company and report the incident. You should also inform the police and file an FIR if there are serious injuries or death following the accident.
  • The insurer will get the vehicle towed to a network garage where a thorough inspection will be done. You should not attempt to move the vehicle without the consent of the insurance company.
  • The network garage will provide an estimate for the repair work, and this will be examined by the insurer. Following this, the insurance company will provide an approval for the work to commence.
  • The service station then repairs the vehicle and submits the relevant bills to the insurance company. The insurer will examine the bills and other documents submitted.
  • Once all the evaluation and verification is done, the claim payout process will commence.
  • The policyholder will have to pay the amount corresponding to deductibles and depreciation.
  • The insurance company will pay the remaining amount directly to the network garage.
  • If the car was damaged beyond economical repair, it is considered to be a total loss situation. The insurance provider will then make a payment to the customer. This amount will be equal to the market value of the car after accounting for depreciation.
Cashless Car Insurance Policy

Insurers Offering Cashless Claim Settlement Facility:

Some of the car insurance providers offering cashless claim settlement facility to customers are listed below:

Insurance company No. of network garages
ICICI Lombard More than 3,500
Chola Insurance More than 3,750
HDFC ERGO More than 4,800
Bharti AXA More than 2,500
IFFCO-TOKIO More than 3,400

As the cashless garage facility has become a very attractive feature in car insurance, almost all leading motor insurance providers are offering this service today. It is advisable to opt for this facility to ensure hassle-free claim settlement.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

Cashless Car Insurance Policy Reviews

Page 1 of 50 1 2 3 4 5
  • HDFC Ergo Car Insurance
    "Very good"
    0.5 5.0/5 "Blown Away!"
    Even my car was insured with HDFC Ergo. It is a second-end car and have chosen the third party insurance. I have not done any claim so far. The premium is reasonable. It offers bumper to bumper facility and road side assistance. The policy period is 2 years.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 14, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 1
    , tirupur
    Reviewed on Jan 10, 2019
  • Tata AIG Car Insurance
    "Good Insurer"
    0.5 5.0/5 "Blown Away!"
    My financier suggested the Tata Aig general insurance, the premium is economical for the car policy. I have honda amaze car it got insured with them. The insurance company is providing 24 hours service, cash less garages, brake down service for the tenure of four years. On time I got the papers from the Tata Aig.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 10, 2019
  • National Insurance Car Insurance
    "Excellent Service"
    0.5 5.0/5 "Blown Away!"
    I had taken this Insurance policy for my Maruti Car and i had been paying the premium on an annual basis. The premium amount has not been too high and there has been cash less garages available with this insurance policy. Their customer support has also been helpful at times.
    Was this review helpful? 1
    , pune
    Reviewed on Jan 09, 2019
  • ICICI Lombard Car Insurance
    "Nice Policy"
    0.5 4.0/5 "Great!"
    My car was insured with ICICI Lombard. Last year i have purchased this insurance policy. My wife has referred me about this policy. I pay the premium amount of Rs. 13500. They have given me a convenient IDV value. I had no claim experience so far.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Need to improve the service"
    0.5 3.0/5 "Satisfactory"
    I'm not satisfied with the service provided by new India. I have bought the car insurance policy. They closed their branch on every weekends hence its difficult to renew the policy. I have been paying the premium amount of Rs. 14000 which is a competitive price. They have given the IDV value of Rs. 1.50 lakhs.
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • New India Car Insurance
    "Average Car Insurance"
    0.5 3.0/5 "Satisfactory"
    My car insured with the New India Insurance company. I have been renewing the policy with the same company for 3 years. I have paid the premium amount of Rs. 7000 and they have offered me a satisfied coverage value. The documentation process was fine
    Was this review helpful? 0
    , mangalore
    Reviewed on Jan 09, 2019
  • review Car Insurance
    "Its Good"
    0.5 3.5/5 "Pretty good"
    Last year I had car policy with Bharthi axa whenever I try to renew it ask my poliy no, whenever I mention the same, it shows the its incorrect. If I try to reach the customer care its not reachable. I done the claim, some minor damage back side of the car, they have processing fee 1500. Remaining all taken care by the insurer.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Great Policy"
    0.5 4.0/5 "Great!"
    ICICI Lombard has a good brand value hence i have selected the car insurance policy with this card and the dealer has also recommended about this policy. I pay the premium amount of Rs. 9000 and this is a 100% coverage with bumper to bumper facility. I'm not sure about the IDV value. Its easy to renew the policy.
    Was this review helpful? 2
    , new delhi
    Reviewed on Jan 08, 2019
  • ICICI Lombard Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    Previously my car was insured was with ICICI Lombard and it was offered by the showroom. I got a call from the representative for the policy renewal as reminder. I got the insurance paper. I have not done done a claim. It is a comprehensive with zero dep. The premium was high so changed my insurer.
    Was this review helpful? 1
    , mumbai
    Reviewed on Jan 08, 2019
  • Future Generali Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I have taken a car insurance from Future Generali through online portal. The premium was reasonable and also they have provide bumper to bumper facility. The policy period is one year. There is no interaction between the customer service. I just gave my car for the claim so no experience.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 08, 2019
  • Oriental Insurance Car Insurance
    "Good insurance company"
    0.5 2.0/5 "Expected more"
    Dealer has referred me about this oriental car insurance when i purchase the vehicle. They have rejected the claim since the copy of FIT is not available. They have given me a coverage value upto Rs. 6 lakhs. For the past 3 years i have been renewed the policy with the same company.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 07, 2019
  • Iffco Tokio Car Insurance
    "Good Policy and you can try"
    0.5 4.0/5 "Great!"
    Two months before, i have taken my car insurance policy with Iffco Tokio. Its a PAN India agreement policy for my Maruti Car. I don't remember about the coverage value. This is a zero depreciation policy. I paid the premium amount of Rs. 6500. I have not seen any add on and cashless garage facility.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 07, 2019
  • Reliance General Car Insurance
    "Its Excellent"
    0.5 4.0/5 "Great!"
    My brother is working with Reliance hence I took my two wheeler policy from this insurance company. I have hyundai accent car, they are providing cash less garages for the damage. I have zero depreciation bumper to bumper policy for the term of one year.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 07, 2019
  • Reliance General Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance policy was taken with reliance. The dealer has provided me a policy with this policy. This is a 100% coverage value which covers the bumper to bumper facility, They have given me a IDV value of Rs. 11 lakhs. I pay the premium amount of RS. 33000.
    Was this review helpful? 0
    , thane
    Reviewed on Jan 04, 2019
  • HDFC Ergo Car Insurance
    "Good service provider"
    0.5 4.5/5 "Excellent!"
    The reason to avail HDFC Ergo policy, my banker have suggest this insurer for my car. They gave me the best insured value around Rs. 6 lakhs based on the vehicle age. I have Hyundai I20 car, they are providing 24/7 helpline and cashless service.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 04, 2019
  • ICICI Lombard Car Insurance
    "Good Policy to take"
    0.5 3.0/5 "Satisfactory"
    My car was insured with ICICI Lombard. I pay the premium amount of Rs. 22000 and i have been renewing the policy continuously for 2 years. They have provided me a no claim bonus. Its covered with bumper to bumper facility. My dealer has recommended me about this policy when i purchase a car.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 03, 2019
  • Iffco Tokio Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a car insurance with IFFCO TOKYO from last 1 year, there was no claim experience so far with this insurance policy. I pay a premium of Rs 5500 for this car insurance. This is a first party insurance with 0% depreciation and the coverage value is good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 03, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a car insurance policy with Bajaj allianz from last 2 years, a premium of Rs 13000 has to be paid for this insurance policy. There was no claim experience so far with this car insurance. This policy has full coverage with 0% depreciation.
    Was this review helpful? 0
    , secunderabad
    Reviewed on Jan 03, 2019
  • Tata AIG Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I am having a car insurance with TATA AIG from last 1 year, a premium of Rs 7272 has to be paid for this car insurance policy. I did not claim anything so far from this insurance policy. I am happy with the plan benefits and policy coverage of this insurance.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 03, 2019
Common Loader Icon
Page 1 of 50 1 2 3 4 5

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.