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5 Drawbacks of Buying Insurance from Your Car Dealer

Team AckoJan 17, 2024

Car owners want the best when it comes to their four-wheeler. Usually, no one wants to settle for anything substandard even if it means spending extra money. Often, this scenario flips on its head when it comes to insuring the vehicle. While buying a car insurance policy, cost-effectiveness gains prominence over features. But is it good? Not really.




Insuring your vehicle is a necessity if you want to drive legally in India. First-time car owners often go ahead with what their car dealer suggests when it comes to buying a car insurance policy. In such cases, car owners do not have to go through the car insurance policy’s details, spend time and effort in checking the insurer’s credibility, etc. Things are served to them on a platter by the car dealer. But is it productive? Again, not really. Read ahead to know the drawbacks of buying insurance from your car dealer.

5 Major Drawbacks

Listed below are the top disadvantages of purchasing a car insurance policy from your car dealer. Note that these points are generic in nature. It is suggested to have a one-on-one discussion with your car dealer to make an informed choice.

1) No Policy Comparison

Nowadays, one can compare car insurance prices easily online. You get to know the best-priced policy after comparing. You can search your ideal policy online by first narrowing down the cover you want and then by comparing which insurer is offering the coverage at best car insurance prices.

When you buy car insurance from a car dealer, you do not have the option of comparing policies. You just have to go ahead with what the car dealer is offering.

2) Rigidity

Most car dealers have a tie-up with an insurance company. This makes them rigid. There is no flexibility when it comes to choosing an insurer from your side. You might have a preferred insurer but you will have to go ahead with the insurer suggested by the car dealer as they have a prearranged deal when it comes to selling insurance policies for cars sold through the dealership.

3) Fixed Cover

Due to lack of comparison and flexibility, you do not get to choose the inclusions in your cover. Car dealers often offer a fixed cover when it comes to a four-wheeler insurance policy. For example, the dealer might offer a Comprehensive plan with a lot of extra features but all you might need is a simple Comprehensive plan. This way, you will end up paying premium for a cover you do not need.

4) Specific Add-ons

The problem of a fixed cover is extended to the Add-ons offered as well. You might not be offered a full range of Add-ons or offered specific Add-ons as a bundle irrespective of your need. This results in lack of appropriate coverage.

5) Missing Digital-first Insurance

Going ahead with the insurance offered by the car dealer means you miss out on the advantages of opting for car insurance online with digital-first insurers.

Here are key highlights of buying car insurance online from digital insurers:

– Choosing the cover of your choice

– Making a choice without getting influenced by any third party

– Low-priced policies without compromising on coverages

– Enhanced service quotient

– Hassle-free claim settlement

– No paperwork

– Quick policy purchase (within two minutes)

– Comparing policies before purchasing car insurance online

Also, read: Vehicle Scrappage Policy in India

Make A Wise Choice

If you are yet to purchase car insurance suggested by your car dealer, spend some time to analyze your car insurance needs and check if the dealer can fulfill them. If the dealer cannot offer you the insurance coverage you desire, feel free to purchase it online.

If you have already gone ahead and purchased the policy from your car dealer, you have the option to choose a different plan at the time of policy renewal. Do not fail to renew your car insurance policy in a timely manner. An expired policy is inactive and an inactive policy is of no use.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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