Pros and Cons of Buying Car Insurance From a Dealer

Purchasing car insurance should just be like buying a car. You should have complete knowledge about the type of insurance you are planning to buy and its list exclusions and inclusions. With this, what matters is also from whom you are purchasing the car insurance policy. Getting your car insured from a car dealer can turn out to be an expensive or an affordable affair if you are aware of the pros and cons associated with insuring the car through a dealer.

Pros of buying car insurance from a dealer

• The entire process of car insurance purchase is streamlined, as the dealer is aware of all the formalities that need to be done.

• The dealer would take care of all the documentation process on your behalf, which would further help you save on a lot of time.

• The dealer would help you understand the coverage offered by the policy in detail, thus you would be aware of all the inclusions and exclusions of the policy.

• You can get a discount on car insurance premium if you purchase the insurance and the car from the dealer. Many insurance companies have a direct tie-up with car dealers who help them sell the policies at discount rates.

• At the time of claims, you can directly get in touch with the car dealer as they have a dedicated help desk to handle insurance related claims and queries.

• The dealer can help you select the right add-ons that you would require to enhance the coverage of your car insurance cover.

Cons of buying car insurance from a dealer

• It is important to understand that the dealer’s primary job is to sell cars and not insurance. Due to this, the dealer may not be able to offer you the best deal available, as he would have a tie-up with only a few insurance companies. Hence, you would get only a few limited policy options to choose from.

• While you would save a lot of time buying car insurance from a dealer, you may lose out a good amount of money instead. Insurance companies offer discounts of up to 65%-70% online as they save a lot on the operational costs. Buying car insurance from the dealer would eventually cost you a high premium when compared to getting the car insured online.

• You miss out on insuring your car with the best car plan as you don’t get to compare plans by various insurers. When purchasing car insurance, it is important you compare various car insurance plans to ensure you get the best coverage at an affordable price.

• Dealers don’t offer you any free add-ons, unlike online insurers. When you buy a policy online, chances are high that the insurer would offer you an add-on for free or at a discounted rate.

• It is important to know that on each sale of a car insurance plan, the dealer is eligible to reach a commission from the insurance company. Hence, to increase the cost of the commission, the dealer might enhance your car policy with add-ons that don’t suit your requirements.

Although many vehicle owners follow the standard way of purchasing car insurance from a dealer, if you have time in hand and want to save money and insure your car with the best plan, then it is always a wise idea to purchase car insurance online in India.