Car Insurance

Is It Mandatory to Buy Car Insurance from Your Auto Dealer?

By Admin
Apr 14, 2021

Buying an insurance policy is often accompanied by some hesitation, unsettled confusion, misinformation, and popular misconceptions. One such common myth is that it is mandatory to purchase a car insurance policy from one’s auto dealer. 

The car owner, in reality, has a wide range of options available for the purchase of a policy for his or her car and is not bound by any insurance company as such.

Pros of buying car insurance from your auto dealer

  • No need to invest time - the auto dealer will take up the responsibility and act as an efficient liaison between the insurance company and the potential purchaser of the car insurance policy.
  • Bundling discounts – this is an attractive offer that will be offered by virtue of purchasing the car and the policy from the same company.
  • Possible assistance during claim settlement – the assistance that the auto dealer offers is not limited to the purchase of the car insurance and extends to post-purchase as well. For instance, the auto dealer might help the car owner in the claim settlement process if the need arises.
  • Customer care about queries – the auto dealer will be equipped in answering any queries or clarifications that a customer might have regarding his or her insurance policy.

Cons of buying car insurance from your auto dealer

  • Limited options – as each auto dealer has tie-ups with only some specific insurance companies, the options that a car owner is exposed to are limited.
  • Higher premiums – this is the case as the auto dealer organises the customer’s car insurance needs from scratch.
  • Inadequate add-ons – the add-ons that the car insurance company that the auto dealer has a tie-up with might be limited in number and might not cater to the needs of each individual car owner.
  • Unreliable customer service – the customer service that the auto dealer has to offer might be poor or inadequate and since you have opted in for their service even in the insurance aspect, you might feel like you have been short-changed.

Some of the top add-ons offered by a car insurance company

Additional options or add-ons are basically extended coverage offered by the insurer. Purchasing an add-on must be premised on the driving experience of the insured.

Some of the top add-ons that an insurance company will offer are as follows –

  • Zero depreciation
  • Engine Protect
  • Return to invoice
  • Roadside assistance cover
  • Accidental coverage for passengers

Why should you buy online from an insurance company?

Purchasing one’s insurance policy online or offline is left entirely to one’s discretion. But there are several advantages of purchasing an insurance policy online. They are listed below –

  • Purchasing insurance online will be less expensive than doing so offline – simply because all intermediaries such as brokers and agents are done away within the online process. For example-Nitin purchased his car insurance online and he was quite happy with the experience. The reason being, the online process not only saved his time and effort but also allowed him to buy a pocket-friendly car insurance policy. Yes, he got lower premiums online as there was no cost of brokerage involved. Hence, it was worth a deal for him.
  • Online insurance companies offer attractive discounts such as new user discounts, year-end discounts or other festival offers to attract customers into this nascent market.
  • One will derive the benefit of getting the insight and expertise of several insurance aggregators that are available online – for they will compare the policies and premium costs of different insurance companies based on objective, fair, standardised metrics, making one’s job easier.
  • The process is also simpler and quicker as all the information is available with a click of a button. The entire process can be wrapped up in a period of a few hours.
  • One also has the option of reading through the terms and conditions of the insurance even before purchasing the insurance.
  • Online car insurance policies offer 24/7 support to the policyholder.

Conclusion

If you wish to purchase a car insurance policy in the near future, do weigh the pros and cons of doing so carefully. Use the opportunity that the internet has to offer by easily collating all information about different insurers and insurance policies in one place and use that to take a final call.

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