Knowledge Centre

Cashless Garage Facility: How is it Important

What are Cashless Garages?

Cashless garages are those that have a tie-up with the insurance company. So, if you take your vehicle for repair to any of the network garages, the cashless cover will pay for the expenses incurred. This means you will not have to pay any expenses upfront. The insurance company will directly settle the bill with the garage. You will also not have to file a claim.

The garage closest to your home might not be eligible for cashless service and you will need to find a garage with a tie-up with your insurance company to avail the facility. It helps to check the list of network garages and ensure there is one in your vicinity before you buy the insurance policy.

How Does the Cashless Garage Facility Works

In case of any damage to your vehicle, immediately inform your insurance company about the same. Do not forget to mention the kind of damages and the areas most affected. Drive or tow the vehicle to the nearest partner-garage. Furnish the policy documents and get approval for cashless repair.

Please note that the policy holder will need to pay for the necessary deductibles as well as for the depreciation value of certain parts.

Once the repair is done, the garage will raise an invoice and send it to the insurance companyalong with the required documents. The insurance company will assess the documents and verify them, after which they will release the payment.

The insurance company will only pay for damages that are covered by the policy. Any additional repair cost for accessories or parts that are beyond the scope of policy has to be borne by the car owner.

Is the Cashless Garage Facility Helpful?

Ask any car owner and they will tell you how helpful and convenient the cashless garage facility is. Some of the benefits of this policy include:

  • Convenient, easy and hassle-free

  • No need for prolonged paper work to file claims

  • Reduces the need for ‘cash collection’ reducing the financial stress on the insured

  • Assured quality repair work

There are times when after a mishap you need money for treatment. At such time, you can get the car repaired without investing any money on repairs. Clearly, the best benefit of cashless garage facility.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by

S. Gopala Krishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopala Krishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

Mr.S. Gopala Krishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process." 


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