One of the key conveniences modern motor insurance offers is the cashless garage facility. Instead of paying upfront for repairs and seeking reimbursement, policyholders can get their vehicles fixed at a network garage, and the insurer pays the bill directly. But how does this process really work, and what are the limitations? This guide answers everything you need to know.
What is a Cashless Garage?
Cashless garages are repair workshops that have a tie-up with your insurance provider. If you visit one of these for repairs after an accident, you don’t need to pay out of pocket (except for deductibles or exclusions). The insurer directly settles the bill with the garage.
Benefits of Using a Cashless Garage
- No upfront payment (except deductibles and exclusions)
- Faster claim processing
- Standardized pricing and quality repairs
- Reduced paperwork
- Pre-approved cost estimates from insurer
How the Cashless Garage Process Works
- Accident/incident occurs
- Inform your insurer immediately and get claim intimation number
- Visit a network garage (insurer will share a list near your location)
- Garage raises repair estimate and gets approval from insurer
- Repairs begin after approval
- Insurer pays the garage directly once work is complete
- You pay deductibles or non-covered expenses (like plastic parts, consumables, etc.)
What’s Covered and What’s Not
Covered:
- Accident-related damage
- Labor and parts (as per policy)
- Add-on items if opted (e.g., Zero Dep, Engine Protection)
Not Covered:
- Wear and tear items (tires, clutch plate, etc.)
- Consumables (unless you have a consumable cover)
- Parts not approved under your policy
Example Case – How Cashless Saves You Hassle
Example: Suman’s SUV was hit from the rear in traffic. She contacted her insurer, who directed her to a cashless garage. The total bill was ₹58,000. With Zero Depreciation and Engine Protection add-ons, she paid only ₹1,200 as deductible. The insurer handled the rest directly with the garage.
Important Tips When Using a Cashless Garage
- Always inform the insurer before starting repairs
- Don’t repair the vehicle at a non-network garage if you want cashless settlement
- Verify what’s included/excluded in the approved estimate
- Ask for a copy of the final invoice and inspection report
How to Find Network Garages
You can find your insurer’s network garages via:
- Their website or mobile app
- Customer support helpline
- PolicyBachat’s insurer directory (when buying or renewing)
Conclusion
Cashless garages are designed to simplify and accelerate the claim settlement process. Choosing an insurer with a large and reliable garage network ensures you’re never stranded after an accident. Just follow the right steps, read your policy terms, and you can leave the garage stress-free — without worrying about large repair bills.