Should You Opt For Motor Insurance Policy From Your Dealer?

The auto insurance policy offered by your car dealer isn’t the only insurance policy on the market, nor is it the best.

Purchasing a new vehicle is an exciting prospect. The glamorous showroom, the shiny display cars, the chance to test-drive the car you have your eyes set on buying. It’s the thrill of this experience and the idea of acquiring a new asset that makes us overlook the fine print on the car purchase contract. One of those things that cost dearly, if overlooked, is vehicle insurance.

It is advisable to specifically ask your car dealer to mention the insurance that they offer, as most of them club insurance in the overall contract. Insurance companies tie up with car manufacturers to place their policies on the forefront since these are the primary point of sales for them. As such, the insurance policy sold by car dealers may just be a misinformed decision. It is mandatory to have vehicle insurance to drive but that doesn’t mean you have to buy the one that your car dealer offers. Here’s why.

Considerable savings on online car insurance policy options

While it is generally hassle-free to get your insurance done with your dealer, it will be an expensive decision compared to car insurance policies available online. This is because insurance companies offer dealers a commission on every auto insurance sale. Since dealers aren’t licensed insurance agents, they do not sufficiently explain the policy. A quick comparison of policies available online could easily save you the 10-20% that dealers get as commission.

Add-on options carry better benefits

The vanilla auto insurance policy, offered by your dealer, may not have the add-ons that dedicated insurance companies have to offer, since their primary intent is to sell the car first. They won’t offer add-ons like zero depreciation cover, engine protection, roadside assistance, and such, even though they are available with insurers at pocket-friendly costs. You can compare policies to determine your preferred add-ons when you purchase a car insurance policy.

The No Claim Bonus (NCB) feature

If you do not make a single claim over your car insurance policy tenure, then you are liable to receive the NCB feature. It is a feature that offers a generous 20% discount per year on the premium, and can be pushed to 50% for a clean track record of five years. Motor dealers misquote NCB and offer the 20% premium discount to attract a policy sale. NCB however, is independent, and you can still claim NCB from your new insurer even if you switch policies. Motor dealers often overlook mentioning that you can even transfer NCB from your old car to the new one.

There’s much more to buying a car insurance than most people are interested in knowing. However, if you wish to know more and are really keen to insure your car against the possibility of expenses on future damages, get in touch with us at PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at insurance@plindia.com

 

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