Owning a car is a big milestone in a person’s life. Most of the people save money to buy their dream car. When an individual buys a car, a dealer offers a lot of freebies to please them, such as hassle-free repairs, value-added services and more.
As a third-party or basic car insurance policy is mandatory in India, the dealer also offers a motor insurance policy for a seamless buying experience.
Why the need to buy a car insurance policy?
A third-party car insurance policy is mandatory for vehicle owners as per Indian law. If you are found driving without a proper car insurance policy, it can lead to fines and penalties from the authorities.
However, a basic third-party car insurance policy only covers third-party liabilities and not the damage to the vehicle or the owner-driver.
A car insurance policy should protect the financial assets of vehicle owners during unforeseen circumstances. Furthermore, the car insurance policy should come with a host of benefits such as personal injury benefits, damages due to man-made circumstances, car theft and more.
Keeping that in mind, every vehicle owner should invest in a comprehensive car insurance policy that caters to their needs.
Is it compulsory to buy insurance from a car dealer?
It is not compulsory to buy a car insurance plan from dealers. To offer convenience and benefits, dealers in India tempt their customers by offering car insurance policies with a car.
However, before taking any hasty decision, owners should know the advantages and disadvantages of buying car insurance online from dealers.
Advantages of buying vehicle insurance from a car dealer
Some of the major perks of buying car insurance from dealers are:
The car dealers make the process of buying insurance policies easy for their customers by doing all the heavy lifting. Vehicle owners don’t need to do any research before buying a car insurance policy.
Car dealers offer bumper discounts to their customers for buying an insurance policy from them.
Besides offering discounts, dealers also ensure to address the queries related to the car insurance policy.
Other than this, depending on the customer’s requirement and budget, the dealer will help them in choosing the coverage for the car insurance plan.
Lastly, car dealers will help or assist their customers at the time of filing the insurance claim by doing the paperwork.
Drawbacks of buying vehicle insurance from a car dealer
Despite various perks that come from buying insurance from car dealers, there are some significant drawbacks which can’t be overlooked. These drawbacks are:
While car dealers may offer discounts and deductions on car insurance policies, the coverage and offering of the plan are restricted. In most cases, the policy you are buying has minimal coverage or only third-party coverage that may or may not fit your requirements.
Since the car dealers have tie-ups with the insurance companies, vehicle owners do not get a chance to explore other car insurance options.
Furthermore, the vehicle owner who buys a policy from the dealer needs to pay the high premiums since the dealers do not advertise voluntary excess or inclusions at the time of purchase.
Other than that, many dealers negotiate with insurance companies based on commissions, which are generally covered by the customers who are buying the car insurance policy.
Lastly, the insurance plan car dealers are offering may or may not have the riders or add-ons customers might need for enhanced vehicle protection.
Factors to consider while buying a car insurance policy
Whether you are buying a car insurance policy from dealers or insurance companies directly, there are some factors that customers need to consider to make the right choice. These factors are:
The first thing is to understand the requirements by doing the risk assessment in your region. It will help you pick the right car insurance plan that offers extensive coverage for vehicles.
The other thing to do is choose a car insurance company that is well-known and has a high claim settlement ratio. When you go with a known insurance brand, you will rest assured that the customer service will be top-notch.
Besides this, it is best to compare car insurance online based on coverage and premiums. This little procedure will give you an idea of what sort of benefits you are getting in the plan or which insurance plan fits your requirements.
Other than this, it is best to be aware of policy terminology and conditions before purchasing a car insurance plan. If you have any queries, reach out to the insurance provider to learn more about the plan.
Many insurance companies have top-notch customer support to address potential customer queries. For instance, Tata AIG offers 24x7x365 customer support.
Last but not least, it is also essential to check if the car insurance policy has a choice of add-ons or riders to enhance vehicle protection. This should be a voluntary option for customers based on their needs.
Conclusion
Buying a car insurance policy is mandatory. However, the decision to purchase should not be rushed in any way. Vehicle owners need to do proper research and work before buying a car insurance plan.
With the widespread internet usage, customers can do all their research online without putting a foot outside their homes. It may help find a good car insurance plan with the coverage they need at the lowest prices without involving a dealer.