Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Track & Policy DownloadLogin

Why You Should Not Buy A Car Insurance From Your Car Dealer?

Wish

Written by Udit Varshney

Updated Oct 15, 2023

When purchasing a vehicle, choosing the dealer's insurance may seem to be the more convenient option. However, if you take a look at the plans available online, you can notice that there are much better deals on the market.

Buying car insurance through a dealership, without a doubt, streamlines, simplifies, and makes the transaction more convenient. All you have to do now is give the nod, sign the papers, and pay the dealer whatever price he wants. 

 Why You Should Not Buy A Car Insurance From Your Car Dealer?

Why You Should Not Buy Car Insurance From Your Car Dealer?

There is, however, a major drawback. If insurance is obtained via a dealership, the following issues can arise:

  • There Are Just A Few Choices To Choose From

    The primary aim of a car dealer is to sell vehicles, not insurance. As a result, the broker could not provide the customer with a full variety of insurance options. If the broker has a contract with two or three insurance firms, he or she will sell only those companies' policies. It will not have solutions outside of their contracts, limiting the policies available to consumers.
  • Premiums Can Be More Costly

    Apart from premiums, car dealers typically enter into tie-ups and agreements with insurance providers, dictating aspects such as servicing and claims. These are then passed on to car dealers in the form of different costs. The total payment that an insurance company can make to a dealer may be as high as 40%. This would have an effect on the insurance price, which could result in high premiums for consumers.
  • Add-Ons Offered May Not Be The Best Fit

    Car insurance add-on covers must be chosen with the car's and owner's unique needs in mind. It has been noted that the types of add-ons provided by dealers on policies do not always adhere to the car owner's usage or specifications. Since dealers are paid on a commission basis, they can be tempted to promote the add-ons that bring in the most money. In addition, since dealers typically have fewer incentives to pass on to car buyers, the cost of add-ons is higher.

Finding The Right Insurance Policy

Instead of buying your insurance from the dealer, buying car insurance online is the best choice after weighing all the advantages and disadvantages.You should have the upper hand in determining how you secure your car because you are putting two years of savings into it.The first move is to find the best automobile insurance policy.

Once you've settled on a package and an insurance agent, the next step is to choose add-ons. Add-on coverages are optional extra coverages that can be obtained to complement the protection offered by a basic comprehensive car insurance policy. It's vital to comprehend which add-ons are sufficient so that consumers don't end up paying for coverage they don't need. Several significant add-ons that can be added to the base plan are as follows:

  • Zero or Nil Depreciation: This add-on provides full coverage without accounting for depreciation of components such as plastic, fibre, rubber, and glass.
  • Engine Protection Cover: This add-on cover protects the car's engine from damage caused by water ingress, which can cause hydrostatic lock.
  • No Claim Bonus Protection Cover: If a claim has been made, the No Claim Bonus Insurance Cover helps to keep the accumulated No Claim Bonus intact on the next policy renewal.
  • Roadside Assistance Coverage: This add-on includes emergency roadside assistance facilities including tyre changing, roadside maintenance, emergency fuel refilling, and towing.
  • Return to Invoice: This add-on guarantees that the policyholder receives the car's original invoice value, not just the IDV, in the event of total failure or robbery.

Conclusion

Thefts, injuries, natural disaster damage, and so on are all risks that your car faces. Car insurance is the only way to cover yourself from the financial consequences of such minor incidents.

You have full power of how you purchase car insurance: you can buy this from a dealer (which will cost you a lot of money) or from an online portal (which will save you a lot of money). Always make an informed decision about the policy you buy, and in the case of car insurance, going the online route is recommended so you can buy a package personalised and pay a lower rate.

Read More

Consequences of Driving Without Car Insurance In India

Ways To Get Your Car Insurance Policy Number

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Wish

Written by Udit Varshney

Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Read More

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read

    FIND RTO OFFICES BY STATE IN INDIA

    FIND RTO OFFICES BY CITY IN INDIA