Often, when you are caught up in the thrill of buying a new car, you might have done your homework to snag a great deal on your vehicle, but you might still end up losing money by opting for a pricey car insurance policy. This happens because most people tend to buy their first car insurance policy directly from the car dealer since it’s convenient. However, not many realise that they can purchase their insurance independently, which can save them money and provide better coverage.
Keep reading to find out how to ensure you get the best deal not just on your car, but also on your car insurance policy.
Do you necessarily need to buy a car insurance policy from the car dealer? Let’s look at the options a car buyer has
Car dealerships often bundle a car insurance policy with the purchase of a vehicle, which many buyers find to be an easy and convenient choice. But remember, it’s not required to get your car insurance from the dealer.
“As per IRDAI guidelines, every buyer can choose any insurer of their choice. Dealer-provided insurance is convenient but can often be on the higher range due to commissions or limited tie-ups. Instead, buyers can purchase policies directly from an insurer’s website or through online aggregators, where one gets the chance to compare multiple options instantly. Even if you initially take the dealer’s policy, you can switch insurers at renewal,” says Krunal Vora, Senior Vice President & & Product Head, Motor Insurance, Probus Insurance Broker.
“For instance, Priya bought a new Swift car, and her dealer quoted Rs 25,000 for a comprehensive plan. The same coverage online costs Rs 18,500, saving her a total of Rs 6,500. Buying directly from the insurer or a trusted digital platform helps new car owners save money while enjoying wider choices,” he continues.
Buying a car insurance policy independently vs from a car dealer
When asked about how much vehicle owners can save on a car insurance policy when buying it directly from an insurer or online, Arti Mulik, Chief Technical Officer, Universal Sompo General Insurance said: “Insured can save 10-15% of his/her premium in case he/she chooses to buy the policy directly, depending on the make and model of the vehicle”.
“While buying a car insurance policy directly, you can choose add-on covers to suit your requirements. There are no commission markups,” she added.
Vohra agreed with Mulik and further cited an example, “A dealer might quote Rs 27,000 for a Hyundai i20, while the same cover directly from the insurer could cost Rs 19,500 (saving about Rs 7,500). One can save additionally through anti-theft devices, good driving history, or timely renewals”.
Buying a car insurance policy online or directly from an insurer allows you to choose between different types of coverage and add-ons, as online platforms are more transparent.
“You can compare multiple insurers, check insured declared values (IDV), and choose relevant add-ons. The digital route allows you to customise your coverage instead of accepting a one-size-fits-all package. You decide your IDV, and add-ons – ensuring you only pay for what you really need,” says Paras Pasricha, Head of Motor Insurance at Policybazaar.
