Pros And Cons Of Buying Motor Insurance From A Car Dealer

When you are looking to buy a new car, you will also be reading up about the various car insurance policies in the market. But when the car dealer makes it easy to buy a policy by bundling the insurance with the car sale, then you would be really tempted to purchase it from the dealership itself. However, before you take a hasty decision in this regard, you should weigh out the pros and cons of insurance purchase through the dealership.

Advantages Of Buying Motor Insurance From A Car Dealer:

The process of buying insurance from a car dealer certainly saves the customer a lot of time. This is predominantly because the car dealer would be aware of the intricacies in the policy and would advice the customer on the most appropriate plan. The customer also does not have to approach an agent or visit the branch office of the insurer for the insurance purchase.

  • The entire process of insurance purchase is streamlined and more convenient when it is through a dealership.
  • The customer may receive bundling discounts on the purchase of the car and the insurance from the car dealer.
  • The dealership will be able to offer the customer a policy that incorporates all the risks he/she wishes to cover. Following this, the customer is not required to approach an insurer for his/her coverage needs.
  • The customer can get in touch with the car dealer to get clarifications on the coverage or at the time of claims. The dealer will efficiently assist the customer in such matters.

Disadvantages Of Buying Insurance From A Car Dealer:

Some car manufacturers enrol with an insurance intermediary and dictate aspects such as claims and servicing. Others negotiate with the insurance company directly. All in all, car dealers usually make a lot of money through the sale of insurance.

You should know that buying insurance from a dealership has its own set of disadvantages:

  • The car dealer will have tie-ups with specific insurance companies. The customer will be able to purchase the insurance solutions provided by these companies only. However, the online mode of insurance purchase helps the customer select from a wide range of insurance companies offering extensive coverage.
  • The car dealer may not offer the best price on insurance. So, while customers save a lot of time through this purchase, they may not really save money. Car dealers work with insurance providers on a commission basis. So, the customer may be required to pay higher premiums than what they would pay if the insurance was purchased through another mode.
  • The process of buying car insurance from a dealer does not give you the opportunity to compare plans between insurers. This is, in fact, a crucial step in the process of deciding on an insurance policy.
  • Dealerships may include voluntary excesses or add-on covers under your auto insurance policy without specifically highlighting it. You should be alert and read through the policy coverage carefully before signing on the dotted line. In case your policy has a high value for voluntary excess, you will be required to pay a large part of the claim amount. Having add-on coverage that is not useful to you will only result in an increase in the premium you pay, without any other benefits.

The Final Word:

Although the standard procedure to buy motor insurance for decades has been through insurance agents, alternative modes of insurance sales have gained immense popularity these days. The modern customer requires instant gratification; so the lag between the purchase of a car and its insurance has become more of an inconvenience. With the introduction of online policies, the customer is able to buy a suitable plan online at the comfort of his home.

It is possible to buy online car insurance policies through neutral financial websites or from the insurance company’s website directly. Online policies are also cheaper than offline plans and can be renewed/maintained easily. The premium payments can be done effortlessly online, in a very secure manner.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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Car Insurance Reviews

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    "Good"
    0.5 4.0/5 "Great!"
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    0.5 5.0/5 "Blown Away!"
    I have taken a car insurance from New India because when I taken my car, they have provided the policy from this company and I have been renewing with the same one. I pay the premium amount of Rs. 7,000 and they are giving me a IDV value up to Rs. 5L. I used to renew the policy in their branch office and the response was good. They don't sent any notification regarding the policy expiry.
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  • review Car Insurance
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    0.5 0.5/5 "Unacceptable"
    1.Fraud company 2.No Transparancy 3.For one accident surveyor asked to intimate 2 claim for zero dept policy 4.disgusting service 5.Customer care doesn't know about the product and dont know the process 6.Making fool to customers by not saying the hidden charges 7.surveyor is non professional 8.Tries to profit the service center by changing unwanted items and forcing customer to pay more than the insurance amount
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    , pune
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    "Excellent policy"
    0.5 4.0/5 "Great!"
    I chosen my car insurance from Reliance because the car where I have purchased those guys deal with the Reliance. If something happened I should not be in a trouble so I agree with them. They are providing a good IDV value for my car. They are sending me a notification through the call and SMS. I used to renew the policy at home because the agent use to come to my place for renewing the policy.
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    , jammu
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  • HDFC Ergo Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    By online randomly I have chosen the car insurance from HDFC Ergo. Their claim ratio is really good. I pay the premium amount of Rs. 19,000 on a year and they are giving me IDV value of Rs. 1.70L. This is a comprehensive policy which covers for 100%. I have a claim experience which is good but I need to pay the claim fee of Rs. 1000.
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    , rajkot
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  • Magma HDI Car Insurance
    "CHEAP AND BASTERS MAGMA MOTOR INSURANCE "
    0.5 0.5/5 "Unacceptable"
    They are very cheap, kamine type people.They talk with customer very rudely.And they play a trick with customer after accident or during claim.Firstly they not visit.And after one week they visit and hold all work .After two week they will ask that MAGMA want to visit the accident site with customer.Till that time customer become frustrate becs their motive is also to frustrate the customer so that customer deny to take the claim.And one importent thing they will say if customer could not visit accident site with MAGMA then no claim will approved becs their motive is do same. SO NOT TAKE ANY INSURANCE FORM MAGMA.KAMINE LOG HAI GHATIYA KISM KE .
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    , gurgaon
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    "Good Policy"
    0.5 5.0/5 "Blown Away!"
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    , ludhiana
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  • ICICI Lombard Car Insurance
    "Good "
    0.5 3.0/5 "Satisfactory"
    My car insurance was taken from TATA AIG because i am holding the policy with the same company for almost seven months and i have not done any claim so far. Paying the premium amount of Rs. 90000 for the tenure of three years for the car insurance.
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    , bangalore
    Reviewed on Mar 02, 2020
  • United India Car Insurance
    "Good Service"
    0.5 5.0/5 "Blown Away!"
    My company has provided me a car insurance from United India. The agent who work with us as a colleague provided me this policy. The premium amount is coming around Rs. 16000. They are giving a coverage amount of Rs. 12 lakh. This is a first party comprehensive plan. I'm getting a no claim bonus and road side assistance as well.
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    , mangalore
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  • New India Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance was taken from New India because i am holding the policy with the same company for almost 30 years and i have done the claim twice so far. My claim experience is really good because they have done a cashless claim upto 90%. I have been paying the premium amount of Rs. 8500 per year and they are giving a IDV value of Rs. 3 lakhs.
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    , jamshedpur
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  • Universal Sompo Car Insurance
    "Good Insurance"
    0.5 5.0/5 "Blown Away!"
    Taken my car insurance from Universal Sompo because the premium is less when i compared to other insurance provider, they have provided me a IDV value of Rs. 4 lakh. When i have done the cashless claim, they have sanctioned in 2 days. I'm getting renewal message in prior when the policy is getting lapsed. This is a first party insurance policy.
    Was this review helpful? 0
    , chennai
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  • Reliance General Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
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    Was this review helpful? 1
    , tirupur
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    "One of the best policy"
    0.5 5.0/5 "Blown Away!"
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    , guwahati
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  • National Insurance Car Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
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    , kolkata
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    "Excellent policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG car insurance is pretty awesome policy. So I have taken my car insurance from this company because they are providing me a bumper to bumper offer, comprehensive policy even if the car is 7 years old and this is the only company who provides this facility. To apply the claim is very easy in a single call. They have provided me 100% claim.
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    , bangalore
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    "Secure and fast claim"
    0.5 5.0/5 "Blown Away!"
    My car insurance was purchased from United India and i have been renewing the policy with the same company for last 5 years. My claim experience is very fast and there is no struggle in getting the claim. The person will come to the spot by the next day once we applied the claim. I got the claim upto 90%. I have been receiving the no claim bonus also.
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    , kochi
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    "Money waste policy"
    0.5 1.0/5 "Really Bad"
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    , chennai
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  • Oriental Insurance Car Insurance
    "Need to improve the service"
    0.5 4.0/5 "Great!"
    ORIENTAL INSURANE has provided a car insurance and they have provided me a better offer with the better quotation including the bumper to bumper offer so that i took the same and till now i never spoke with the customer care also. I have not approached for them for any claim. They have offered me a coverage value of Rs. 3.5L. I have renewed the policy in online.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 21, 2020
  • United India Car Insurance
    "Service is good"
    0.5 4.0/5 "Great!"
    Took my car insurance from United India based on the agent suggestion. I pay the premium amount of Rs. 3600 its because of the no claim bonus and some extra discounts. I have not applied any claim till now. From 7 years, i have been renewing the policy with the same company. They will give reminder call and I'm getting SMS from United India before the policy expiry.
    Was this review helpful? 1
    , jaipur
    Reviewed on Jan 16, 2020
  • New India Car Insurance
    "Good policy"
    0.5 4.0/5 "Great!"
    Chosen my car insurance from New India since its a government sector company and i have a known person over there. There is no cashless claim i had because there is a delay in that and it takes almost 1 week. They are giving claim upto 70% since my vehicle is old one. I pay the premium amount of Rs. 12500 on every year. They said they are providing a road side assistance and no claim bonus facility.
    Was this review helpful? 3
    , coimbatore
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