Cashless vs Reimbursement Car Insurance Claim: What Is the Difference?

In a cashless claim, you repair your car at a network garage and the insurer pays the garage directly. In a reimbursement claim, you pay the garage first and then claim the money back from the insurer with your bills. Cashless is usually easier, but reimbursement lets you choose any garage.

What is a cashless claim?

In a cashless claim, you take your car to a garage that is in the insurer's network. The insurer settles the covered repair cost with the garage directly.

You still pay some items yourself, such as:

• The compulsory deductible
• Any voluntary deductible you chose
• Items not covered, like normal wear and tear
• Depreciation on parts, unless you have the zero depreciation add-on

Cashless is popular because you do not need a large amount of money at the start.

What is a reimbursement claim?

In a reimbursement claim, you pay the full repair bill to the garage first. Then you send your bills and documents to the insurer. After checking, the insurer pays you the eligible amount, as per policy terms.

This is useful when:

• You repaired the car at a garage outside the network
• The accident happened in a place with no network garage nearby
• Cashless was not possible for some reason

Main differences

Who pays the garage: In cashless, the insurer pays the garage. In reimbursement, you pay first.

Garage choice: Cashless needs a network garage. Reimbursement allows any garage, but the insurer still checks the bills.

Cash needed upfront: Cashless needs little. Reimbursement needs the full amount first.

Paperwork: Cashless has less work for you. Reimbursement needs you to collect and submit all bills.

Speed of money: In cashless, the garage and insurer settle between themselves. In reimbursement, you wait for the insurer to pay you back.

Steps for a cashless claim

1. Inform the insurer quickly. Tell the police too, if needed.
2. Take the car to a network garage.
3. The insurer or surveyor checks the damage.
4. The insurer approves the repair estimate.
5. The garage repairs the car.
6. You pay your share, like the deductible and non-covered items.
7. The insurer pays the garage.

Our post on how to make a car insurance claim explains the full process.

Steps for a reimbursement claim

1. Inform the insurer quickly. Tell the police too, if needed.
2. Do not repair beyond need before the survey.
3. Let the surveyor check the car.
4. Repair the car and pay the garage.
5. Collect all bills, receipts and photos.
6. Submit the claim form and documents to the insurer.
7. The insurer checks and pays you as per policy terms.

Documents usually include the RC copy, driving licence, policy copy, claim form, repair estimate and bills, photos and an FIR when needed. See our list of documents required for car insurance.

Which one should you choose?

Choose cashless if:

• A network garage is near you
• You do not want to arrange a large amount of money
• You want less paperwork

Choose reimbursement if:

• You prefer a garage of your own choice
• No network garage is close to you
• You are fine paying first and waiting

Before an accident happens, find the network garages near your home and office. Your insurer's website or app usually shows the list. You can also ask our claim support team for help.

Things to remember

• Late intimation can cause rejection in either type of claim.
• Wrong or hidden facts can also cause rejection.
• Keep all bills, even for small items.
• Reimbursement may take more time because bills are checked.
• Neither type guarantees approval. It depends on the policy and the facts.

A comprehensive policy is needed for own-damage claims. Third-party policies do not pay for your own car. See our comprehensive insurance page to learn more. When you are ready, you can get a quote.

Insurer rules and network lists can change. Your policy document is the final word, so read it carefully.

FAQs

Is cashless claim always better?

Not always. It is easier, but it needs a network garage. Reimbursement gives you more choice of garage.

Do I pay anything in a cashless claim?

Yes. You usually pay the deductible and any non-covered items.

Can I switch from cashless to reimbursement?

It depends on the insurer and the situation. Ask the insurer as early as you can.

How do I find a network garage?

Check your insurer's website or app, or call the helpline. They can share the list near you.

This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.