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What are the drawbacks of buying insurance from your car dealer?

car insurance

The main drawbacks of purchasing a car insurance policy from your car dealer are described below. Remember that, in essence, such points are common. Make an informed choice, it is recommended that you have a one-on-one conversation with the car dealer.

No policy comparison: Nowadays, car insurance prices can be easily compared online. After comparing, you get to know the best-priced policy. You can find your ideal plan online by first reducing the cover you want and then offering coverage at the best insurance prices by the insurer.

Through car dealers - You do not have the opportunity to compare plans when purchasing car insurance from a car dealer. You have to proceed with the things offered by the car dealer.

Rigidity: Most car dealers have a tie-up with an insurance company. This makes them rigid. When it comes to choosing an insurer on your behalf, there is no flexibility. You may have a preferred insurer, but the insurer suggested by the car dealer will have to proceed because they will have a pre-arranged deal when it comes to selling insurance policies for cars sold by the dealer.

Fixed Cover: In contrast and lack of flexibility, inclusions in your cover are not selected. In the case of a four-wheeler insurance policy, car dealers also provide a fixed cover. For example, the dealer may sell a comprehensive plan with lots of additional features, but you will need a simple, comprehensive plan. This way, you are going to pay a premium for a cover that you do not need.

Specific Add-ons: A fixed cover problem is also extended to add-ons. You may not be offered a full range of add-ons or may be offered specific add-ons regardless of your need. That is a result of a lack of proper coverage.

Missing Digital-First Insurance: Going forward with insurance offered by car dealers means you have missed out on the benefits of online car insurance with digital-first insurers.
Here are the key points of buying car insurance online from digital insurers:
  • Select the cover of your choice.
  • To select without being influenced by any third party.
  • Low-priced policies that do not affect coverage.
  • Improved service quotient.
  • Hassle-free claim settlement.
  • No paperwork.
  • Quick policy purchase (within two minutes).
  • Analysis of car insurance plans before buying online.
Conclusion: If you want to buy the car insurance suggested by your car dealer, then spend some time analyzing your car insurance needs and check if the dealers can meet them. If the dealer cannot offer you insurance coverage as you wish, feel free to buy it online.

If you have already gone ahead and purchased a car dealer's policy, at the time of policy renewal, you have the option to choose a different plan. Don't forget to renew your car insurance policy promptly. An expiry policy is inactive and an inactive policy has no meaning.