Is It Mandatory To Buy Insurance From A Bike Dealer

The excitement of riding a brand-new bike is unrivaled, and it is pure happiness. But riding safely on a bike is a duty that comes with it. Basic safety precautions that must be observed include donning a helmet, obeying traffic laws, and remaining vigilant. Similar to how you might protect yourself from financial losses by insuring your bike. It is also a necessary prerequisite. Continue reading to learn important information that you should be conscious of while preparing to purchase new two-wheeler insurance.

It is not required to purchase insurance from the dealer for a new car. However, in rare circumstances, you may be able to bargain with the dealer and get the first year included for free. I've heard of people picking up their cars without a registration number, but I've never heard of anyone picking up their cars without ever registering at the RTO, primarily because it wouldn't be permitted to drive the car out of the dealership. Another argument is that doing it yourself would be more difficult. Leave it to them; they are familiar with the procedure and perform it frequently.

Is Purchasing Auto Insurance from a Car Dealer Necessary?

 You are not required to purchase insurance coverage from your dealer according to any official regulation or law. Any of the reputable insurance providers in the Indian insurance sector are a good choice if you want to buy automobile insurance. Purchasing insurance from your car dealer has several advantages, like the ease of purchasing instantly without delay, assistance from your car dealer, etc. Before enrolling in insurance through your auto dealer, it is a great idea to compare alternative car insurance plans offered on the market, as you might find better offers at lower costs. Before purchasing insurance from your auto dealer, we've listed the advantages and disadvantages for your consideration.

 Benefits of Purchasing Auto Insurance through Your Dealer

• It is fairly easy to purchase auto insurance from your automobile dealer. Your auto dealer can choose the most advantageous strategy for you; you don't need to conduct any research.

• As an incentive for customers to purchase insurance from them, auto dealers frequently provide discounts on auto insurance. Additionally, the dealership can answer any questions you may have about the insurance that you are planning to buy from them.

• When filing a claim for auto insurance, the automobile dealership may assist you with the registration and claim procedures. Anytime you have concerns about the insurance policy, you can get in touch with your auto dealer.

• Your automobile dealer can directly assist you in selecting the best auto insurance policy, including any extra coverage or riders that you might require.

The Drawbacks of Purchasing Auto Insurance through Your Dealer

• When you buy an insurance policy straight from a car dealer, they get paid a commission. You can be paying more for the identical insurance offered elsewhere for a lower cost because the cost of their fee is already factored into the insurance plan.

• When you buy a car from a car dealer, you might only be able to choose insurance plans from these particular firms because car dealers typically have partnerships with one or two insurance providers.

• You might not be able to find insurance policies with riders or extra features at your auto dealer. In this situation, it is preferable to explore options elsewhere rather than purchase a policy you are dissatisfied with.

• Because they assume purchasers won't read the fine print, some car shops engage in unscrupulous activities like adding riders or add-on covers without your permission. Any legal document you are signing should always have the terms and conditions printed clearly.

• Online, you can find a wide range of auto insurance options that may not be offered at your local car dealership. It's crucial to investigate every insurance option out there in order to make the greatest decision.

Conclusion

 You can make a good choice now that you are aware of the benefits and drawbacks of purchasing auto insurance from a car dealership. Before making a decision, it is typically a good idea to review all of the insurance coverage and its benefits that are accessible online. The purchase of auto insurance from a car dealer is not required. Typically, auto salespeople try to persuade customers to choose an insurance plan that could have a higher cost. Therefore, it is usually advisable to investigate the various insurance options before heading to a car dealership.

FAQs

1. Is it compulsory to buy 5 years of insurance from a bike dealer?

No, it’s not a hard and fast rule that you must acquire a 5-year insurance policy from your bike dealer. When you buy a new two-wheeler, the law mandates that you should have third-party liability insurance for 5 years. However, the choice is entirely yours when it comes to deciding where to purchase this insurance.

Dealers often offer this as part of the purchase package, tying the bow neatly around your new purchase. It may seem convenient, but it’s always wise to step back, shop around, and explore your options. Doing a bit of homework might unveil better deals and more comprehensive coverages elsewhere. So, feel free to exercise your choice and select an insurance plan that perfectly aligns with your needs and budget.

2. Why is bike insurance from dealers expensive?

Dealers often operate on a ‘one-stop-shop’ philosophy. They bundle the bike purchase, registration, and insurance into one neat package for the buyer. While this is incredibly convenient and saves you from the legwork, it often comes at a premium. Here’s why:

1. Commission Costs:

   Dealers act as middlemen between you and the insurance company, and for their services, they charge a commission. This commission gets seamlessly woven into the cost of your bike insurance, making it a tad pricier.

2. Limited Choices:

   Dealers often have tie-ups with specific insurance companies. While this partnership blooms, your choices might get a bit restricted, preventing you from exploring more competitive rates in the market.

3. Add-On Services:

   Dealers sometimes sprinkle some additional services or add-ons into the insurance package. While these might be useful, they also contribute to the inflation of the overall cost.

4. Convenience Charges:

   For the luxury of escaping paperwork and multiple office visits, there’s a price to pay. The convenience of getting everything sorted at the dealership is a sweet service, but it does subtly nudge the cost upward.

It’s always a balancing act when choosing where to buy your bike insurance. Dealers offer a buffet of convenience, but it might come with a side of higher costs. A discerning eye and a willingness to explore could lead you to more cost-effective and tailored options in the vast insurance marketplace. 

Also Read: How To Claim Insurance After A Bike Accident