Avoid buying insurance from car dealers as it is usually bundled as part of the deal, and may have little to offer
Avoid buying insurance from car dealers as it is usually bundled as part of the deal, and may have little to offer
Ashwini Dubey
The relationship that car owners have with their vehicle is often quite the opposite of that with their motor insurance.
Overwhelmed by the excitement of buying a new car, most buyers don’t hesitate to think about insurance.
From the time one decides to buy a car, till the time of taking delivery, most of the research and effort goes into the specifications of the vehicle. Motor insurance, on the other hand, is treated as a ‘casual purchase’.
Insurance often comes bundled as part of the deal assigned by the dealer.
After all, who wants to think about the loss at the time of purchase? However, much to the concern of car owners, accidents on Indian roads are as real as they are – 4.5 lakh road accidents per year, to be exact. With such an alarming figure, insurance goes beyond just a mandate to avoid hefty fines, and instead, becomes the shield that protects you and your prized possessions. Therefore, it is important to give motor insurance purchase its equal share of research. If you are a potential car buyer looking for an insurance policy, then you should not rush to grab any policy offered to you by your dealer.
limited options
Models, features, accessories and what not? Buyers can’t find enough research to research the limitless options for each of these before they can zero in on their dream car. Why not do this while buying a protective cover for it? Car dealers are not the primary dealers of insurance. They usually tie up with a limited number of insurers and make a profit on the sale of insurance. For many insurance companies, car dealers act as the best point of sale for converting customers. But before taking it on, ask yourself, is this the best you can do to protect your vehicle in the event of an unfortunate accident? There is a high probability of following a cookie-cutter approach in designing these insurance policies with equal benefits for each buyer. It is always advisable to opt for a policy that best suits your needs and not a pre-approved approach.
valuable deal
A bundled car insurance deal may come with some additional features or add-ons to the policy. The dealer acts as the best medium to offer these facilities to the customer. Although sometimes useful, often not all the features are useful to the buyer, but he buys the policy anyway. This later results in costly premiums. Plus, every add-on comes at a cost. It is the customer who can pay 40% more in a dealer-insurer arrangement. So, don’t be in a rush to buy anything that you might regret later.
For example, if you live in an area where you think your car will not be as much water exposure or you can go the extra mile to carefully protect your engine, you may choose not to buy an engine protection cover. can.
On the other hand, customers can also be duped into paying expensive premiums for a deal that may or may not include adequate add-on cover. There is a possibility that the buyer may need covers such as roadside assistance, zero depreciation or personal accident cover, but may not be aware of them at the time of purchase. In such a situation, they will have to opt for such add-ons later which can be costly for them. So, don’t be in a rush to buy something that you might regret later.
lose profit online
Technology is the foundation of the modern world, and everything you need is available at your fingertips. While insurance is still considered a distribution-controlled product sold through the foot-on-street model, you can easily buy insurance online like you would buy anything else. As the digital medium eliminates the need for any human intervention, cost reduction is reflected in policy pricing as well. This is just one of the major benefits of buying motor insurance online among many others.
You can travel through countless options and customize your facilities as per your needs. You can also get reliable reviews from other policyholders and choose the best option. Given that we are still in the midst of a pandemic, you can get end-to-end shopping done securely online from your home. Buying online is also much more convenient. If you need any assistance, you can talk to the insurer or aggregator via audio or video call. You can easily compare the important aspects of the policy like Claim Settlement Ratio or Sum Assured Declared Value (IDV).
Not only financially but also emotionally, buying your coveted car is a moment of vital importance for the owner. However, it is equally important not to let this enthusiasm overwhelm you or get you into a subpar insurance deal.
(Author Head – Motor Insurance Renewal, Policybazaar.com)