A network garage is a workshop your insurer has a tie-up with, where repairs are cashless and the insurer pays the garage directly. The non-network garage option lets you use any workshop you trust, but you pay the repair bill yourself first and claim the money back later. Understanding the impact of these choices on factors such as convenience, claim settlement, repair quality, and your out-of-pocket expenses will help you select the most suitable car insurance policy for your needs.
What is a Network Garage?
Network garage refers to a repair workshop that is partnered with your car insurance company. As a result of this partnership, you may have a cashless repair. The garage and your insurer handle the payment between themselves.
You are only required to pay for the parts that the policy does not cover. Most of the time, this includes the deductible (the set amount of money you agree to pay on every claim) and depreciation (the amount by which a part's value decreases over time and with use). Politely, you do not pay the total repair price. For example, ACKO has a network of almost 5000 garages and cashless repair is available at almost all of them.
What Does the Non-Network Garage Option Mean?
The non-network or Any Garage option means you can take your car to any workshop you choose, not just the ones on your insurer's list. This is also called the reimbursement route.
Initially, you are required to pay the entire repair cost at the garage. Once you have done that, you send the original bills and receipts to your insurer in order to get the reimbursement, excluding the deductible and depreciation. This method is usually chosen when one is very certain about a specific mechanic or if there is no network garage close by.
What is the Exact Difference Between Network Garages and the Non-Network Garage?
The biggest difference is who pays for the garage first, and how much freedom you have to choose the workshop.
Feature | Network Garage (Cashless) | Non-Network Garage (Reimbursement) |
|---|---|---|
Who pays for the garage | The insurer will pay directly to the garage | Payment should be made by you first, and then claim it back |
Choice of workshop | Garages only from the insurer's approved list | Any workshop you fully rely on |
Money needed upfront | Deductible and depreciation only | The total amount of the repair |
Paperwork for you | Very little; the garage manages almost everything | Bills of purchase, receipts, claim form |
Settlement speed | Usually faster | United, verification of bills is done first |
Note: If you opt for a garage that is not in your insurer's network, you will have to discontinue the cashless benefit, even if you have a full comprehensive insurance policy. You will need to pay the invoice upfront and submit the claim for reimbursement afterwards.
When Should You Use a Network Garage?
You should use a network garage if you want to avoid a huge repair bill you may have to pay on your own. Otherwise, the easiest way for most car insurance accident claims is that one does not have to pay any money. One takes a car, the insurer and garage settle a price, and one only pays their share, gets the car back. It also means less paperwork as the garage does most of the work.
When Does Using Any Garage Make Sense?
Using any garage makes sense when the workshop you trust is not on your insurer's list, or when no network garage is close to you. It also helps if you want a specific mechanic who knows your car. The trade-off is money and time. You need to have enough cash to pay the bill first, and the refund can take days or weeks while the insurer reviews your documents.
How Does a Cashless Claim at a Network Garage Work?
A cashless claim at a network garage is a very convenient method, it works as follows:
1. Inform the insurance company about the damage either through phone, app, or website, and write down the claim number.
2. Bring the vehicle to the network garage or have it towed.
3. The surveyor will check the damage and negotiate the repair cost with the garage.
4. The garage will do the repair work.
5. The insurer pays the garage directly, you pay only your part, and then pick up your car.
According to IRDAI regulations designed to protect policyholders, the insurer is required to release the claim payment within a specific number of working days from the receipt of the final survey report and the other requisite documents from you.
Read more: cashless claim in car insurance
Key Takeaways
When you opt for a network garage, the repair process is cashless, implying that your insurance company will directly pay the garage. Your responsibility will be limited to the deductible, depreciation, and any non-insurance items.
'Any Garage' option allows you to visit any workshop; however, in this scenario, you will be paying the bill yourself and then getting reimbursed. Be sure you have enough money to cover the entire bill.
In case your vehicle repair is done at a non-network garage, you will lose the cashless advantage even if you have a comprehensive policy. The insurance coverage will be as it is, only the mode of convenience will be different.
First, you should select the option of repair well before the repair, and not after it. Cashless is good for experiencing.
Frequently asked questions
No, the cashless repair is available only at garages that are tied up with insurance companies. Other than the workshop, you make the payment first, and only then can you get the money back.
You won't lose the claim amount; however, you will spend the money on yourself. It is you who should make the full payment before that, and right after that you will be just waiting for the refund, which can take quite some time, even up to a few days through to weeks after the documents are received.
Look at the insurance company's app or website, or talk to their support team. Mostly, they have a feature that lets you search by city or area, so you can find a nearby approved garage even before you decide to get your repair done.
Usually, the insurer will rely on a network garage as that is the only one they have done a comprehensive inspection of. However, if you choose a garage of your own, the quality of the repair will be entirely up to the workshop and not the insurance company.
Most likely, yes, if you inform the insurance company promptly. On the other hand, if the cashless repair is already underway at the network garage, changing to upward mode will be almost impossible there, so you should decide the mode at the time of claim reporting.
About the authors
Nikhila PS
Written by · Senior Content EditorNikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Rekhit Singh Kaushal
Reviewed by · Senior Director - Motor UnderwritingRekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
