Why Buying Car Insurance From Your Car Dealer Is Not a Good Idea?

As per the Motor Vehicles Act, 1988, it is compulsory to buy a car insurance policy in India. Also, with 55 road accidents occurring in every one hour in the country, it definitely makes sense to insure your car.

But, when it comes to buying an insurance policy, most of the car owners prefer to go ahead with the option suggested by their car dealer. They need not to go through the policy details or check the insurer’s credibility. Everything is sorted. But, is it really a good idea to get the car insurance done from the car dealer?

Well, the answer is no.

Here are the potential reasons why –

  1. High Premiums

Aspects, such as claims, servicing and premiums are passed to the car dealers in the form of expenses. Hence, the total payment received by the dealer can be as high as 40%, which in turn, impacts the policy price. For the customers, this result into higher premiums.

  1. Fixed Cover

When buying a four-wheeler insurance policy, most of the car dealers offer a fixed cover. Hence, you do not get to choose what should be included in your cover. For instance, you may get a comprehensive plan with a local of features included in it. However, you may need a simple plan. As a result, you will pay premium for a cover that is of no use to you.

  1. No Appropriate Add-Ons

Add-ons offered on insurance policies by car dealers may not match your requirements. You may either be offered a few specific add-ons or a full range of add-ons, irrespective of what your need is. Hence, you do not get an appropriate coverage.

Buy The Insurance Policy Online

The best way to find the right insurance policy for your car is to buy car insurance online rather than buying it from your car dealer. If you compare the insurance rates offered by the dealers from that offered online, you will find that you can save approximately 40% on the policies purchased online.

Another benefit of purchasing an insurance policy online is that you get a number of insurance choices, according to your needs. At an online platform, the car buyer has the option to compare all the available choices in the market and select an ideal plan. Also, when it comes to add-ons, the online insurance platform gives you the opportunity to choose among different riders they deem fit.

So, choose the right insurance policy today!

Don’t rush for your car to be insured. Compare different insurance plans available online (don’t forget to compare the online plans with the one offered by your car dealer), check the cost charged for the cover, check premium rates for the coverage and finally, decide the add-ons (for example, Zero or Nil Depreciation, Engine Protection Cover, Roadside Assistance Cover etc.) very carefully.

With these simple tips in mind, you will certainly get access to the right policy that suits your requirements. So, get started today.


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Jason Black

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