What is cashless car insurance?

A cashless insurance policy is where policyholders need not pay anything to avail of any service that falls under that particular insurance policy. In the case of a vehicle insurance plan, individuals can complete any repairing and replacement work done without paying money. However, a point to remember here is that this facility is only available through network garages.

Therefore, if you are opting for a car insurance renewal online, do not forget to check the number of network garages a policy provider has, and then choose accordingly.

How to avail of the benefits of a cashless insurance plan?

Now that you have a brief idea of what a cashless facility is, it is equally important to learn how to use this facility to your advantage. After an incident, the process is quite simple: take your vehicle to the nearest workshop that has an affiliation with your insurance company. Once your vehicle is diagnosed, and an estimation is available of the damage, let the garage know about your cashless claim facility and submit the necessary details.

Once the work is complete, you need not worry about payment; the motor insurance company will reimburse the garage.

Apart from these, three vital points to keep in mind in a scenario like this is –

1. Inform your insurance provider immediately after an incident. The process, however, will differ from one insurer to another.
2. Do not skip the process of informing your local police station and filing a complaint.
3. Not every component of a vehicle is covered under an insurance policy. Therefore, if any of these uncovered parts need to be replaced, you must bear that cost.

Since a selected few garages have an affiliation with your insurance provider, you need to take your vehicle to only those selected few.

Besides learning about partner garages, you must consider a few more pointers before completing a car insurance renewal online.

4 points to check before opting for a car insurance renewal online

Here are a few factors to take into account while renewing motor insurance to make an informed decision –

1. Available no-claim bonus

While thinking about car insurance renewal, the first point to consider is a no-claim bonus. If you have spent a year without making an insurance claim, it will accumulate a no-claim bonus, which can help you to reduce your premium amount. The percentage here is not uniform; it depends on an insurance provider.

2. Facility of add-on features

If you want, you can revise and add or subtract add-on features of your insurance policy. For instance, you have a standard comprehensive car insurance plan, which during renewal, you can add covers like zero depreciation, roadside assistance, etc. You can also reduce add-ons if required.

3. Factoring in compulsory and voluntary deductibles

Compulsory and voluntary deductibles are two other points you need to consider before car insurance renewal online. A compulsory deductible is a charge that every policyholder must pay when a claim arises. Moreover, this is a mandate by the IRDAI.

Voluntary deductibles are what you choose to pay from your pocket before filing a claim. Selecting a higher voluntary deductible will reduce the premium amount.

4. Check IDV

IDV or Insured Declared Value is the basic valuation of a vehicle set by an insurance provider for a single year. In case of theft or loss of a vehicle, the insurer will process a claim based on this valuation.

Completing a car insurance renewal online is now hassle-free, especially after motor insurance providers launched their dedicated mobile application. However, before going ahead with the process, one must compare policies and then opt for one.

Also Read:- Should I buy comprehensive car insurance for my old car?