Introduction
When you buy a new car, you also need to buy a new insurance policy. Car insurance is compulsory in India. It is a common practice for dealers to offer the insurance policy along with the car. There are many pros and cons of this practice. Let us find out more about them in the detailed article below.
What is dealer-provided car insurance?
As soon as you buy a car, you need to get it insured. Most of the car dealers in India provide you with a suitable insurance policy. They charge you for the plan, and you have to adhere to the clauses stated by the insurer. Many customers opt for this policy as it is instant and convenient.
While there are some benefits of dealer-offered car insurance, there are some drawbacks as well. You cannot customise your policy. You cannot pick the car insurance company you like. You cannot alter the clauses of the coverage.
What are the benefits of opting for the insurance plan offered by the car dealer?
First, let us look at the benefits of taking the dealer-provided car insurance plan:
1. Paperwork handled by the dealer
The paperwork is handled by the dealer. You don't have to fill out multiple forms, arrange for documents, and so on. This makes the work easier. It brings forth convenience. This is one of the best benefits of getting the car insurance plan offered by your car dealer. This is also the top reason why most customers choose this option.
2. Instant, readymade coverage
You cannot drive your car till the motor insurance plan is issued. The dealer-provided insurance policy is put into action as soon as the car is sold. This gives you an instant, readymade coverage. You can confidently drive your car out of the showroom without having to worry about the formalities.
3. No need for research
Buying car insurance is not a complex process. However, you need to do your research and find the most suitable policy. When you opt for the dealer-provided policy, the research is already done for you. The dealer claims to give you the best insurance plan. If you trust your dealer, you can take the policy.
What are the drawbacks of opting for the insurance plan offered by the car dealer?
Although beneficial, the insurance policy offered to you by your car dealer may have certain limitations, such as:
1. Not flexible
The coverage is usually fixed. When you buy car insurance on your own, you get to customise the plan. You can choose a base policy, or you can add riders to it. You can opt for a regular one-year term or get it for a longer term. You can adjust the coverage amount. These flexible aspects are usually not seen in the car insurance plans offered by the dealers.
2. Often more expensive
You can look at different options and find an affordable car insurance plan for yourself. But when you rely on the plan your dealer presents, you are bound to take that at the cost he offers it. This often proves to be more expensive.
3. Limited choices
Buying car insurance is not enough. Getting the policy from a trusted insurance provider is crucial. When you opt for the dealer-provided plan, you can't choose an insurer of your choice. However, if you buy it yourself, you can choose a good insurer like Generali Central. This makes a difference, and is a big reason why people don't like taking the dealer-offered car insurance plan.
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