A cashless car insurance policy can be called a marvel in the insurance world! When cars encounter damage/repair, the owners usually have to bear the entire cost and then stake a claim to their insurance provider. The company will reimburse a portion of the cost.
Car damages/repairs can cost tens of thousands at a minimum, and paying that from your pocket can be stressful. However, with cashless car insurance, the insurance provider will directly pay the cost to the garage. Thus, the policyholder does not have to pay up first and then wait for a reimbursement. Doesn’t this seem like the best car insurance scheme out there?
Before you conclude, know that 100% of all damages will not necessarily be paid for by the insurance company. This blog teaches you about the nitty-gritty of cashless car insurance. Read on and decide whether this insurance is for you!
Pros of using cashless car insurance –
Less stress on your finances in the event of repair/ damage – As mentioned already, car repair costs can be very high. Since the damage itself is unexpected, a sudden need to pay an amount like Rs. 50,000 or Rs.1,00,000 to the garage can be a financial burden. This is where the cashless car insurance policy will save the day!
Hassle-Free – You do not need to pay upfront and then wait to be refunded. The insurance provider will inspect the vehicle and pay the garage directly, thus simplifying the process for you and ensuring you don’t stay out-of-pocket at all.
Fast – The claims are processed swiftly in most cases.
Cons of using cashless car insurance-
All car parts are not covered – Costs to attend to damage to certain car parts are not refundable under certain insurance schemes. If such parts that are not covered in the insurance plan get damaged, you will have to bear the cost for the same.
Deductibles and Depreciation – If you enrol for the policy choosing a lot of deductibles, you will have to bear costs for the same in the case of an accident/damage to your car.
Another factor is depreciation, which refers to the constant decrease in value over time. The insurance company will subtract depreciation of the vehicle before paying the garage. This amount will thus be payable by the customer. Thus, cashless car insurance is not necessarily 100% cashless. You still might end up paying a portion of the bill from your pockets.
Garages covered – You cannot get your car repaired anywhere and then request for the bill to be paid by the insurance provider. The company will have tie-ups with certain garages as a part of its network. You can avail of cashless car insurance only when you get your vehicle repaired from such garages.
We hope that you found this quick-read informative. Chola MS is one of the best car insurance providers in the country. It has a dependable and large network of 8,000+ garages! It offers comprehensive coverage, doorstep pickup, and repair. Now that’s the kind of backup that makes car insurance work so well for you. Check out our website to learn more!