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How to Buy Car Insurance Without Paying a Commission?

Team AckoMay 17, 2022

Buying car insurance without an agent or middlemen can be a challenging task since we have to depend on them to know the features and benefits of the policy. For this, the agent was paid a commission for every policy sold.

Agent commission added to the cost of the insurance for the vehicle. Insurers had to take into consideration the commission and operating costs before determining the premium amount. But, can you buy car insurance without paying a commission? The answer is a yes. 

In this article, you will learn about how you can buy an affordable car insurance plan without depending on an agent. 

How to Buy Car Insurance Without Paying a Commission

Ways to buy car insurance without paying a commission

Here are the main routes you can take when buying car insurance without paying a commission.

1.Car insurance direct from the insurer

There is no need for an agent or middlemen with direct car insurance. Online car insurance from ACKO offers direct insurance quotes on the website or mobile app.

When you get a car insurance quote online, you can refer to all the terms and conditions. You can enter your vehicle information and won’t have to pay a commission to an agent that increases the plan’s cost.

Good choice for you if:

  • You want a hassle-free experience.

  • You have basic knowledge about motor insurance and how it works and don’t need support from an agent.

  • Want to compare car insurance on a single platform.

  • Convenience is your top priority when you need insurance as quickly as possible.

  • The freedom to customise your car insurance policy as per your requirements, such as the inclusion of add-on covers to enhance the plan. 

2.Car insurance from the branch office

You can approach the insurer’s branch instead of depending on the agent and thereby can avoid paying a commission. You may have to take the hassle of travelling to the location and wait until you have the opportunity to talk to a staff member.

You may benefit from affordable car insurance since you purchase the plan directly from the insurer. And have the chance to discuss the plan with an executive and understand the terms and conditions of the policy.

Good choice for you if:

  • You don’t know your requirements and want someone to help you through the process and options.

  • You want to know more about the policy in person.

  • You are not inclined to a digital or online environment.

  • You don’t want to pay commission to an agent.

Possible downsides:

  • Time-consuming process.

  • Lengthy paperwork or documentation.

  • Higher premium compared to online car insurance costs.

  • You need to be physically present to get the insurance policy.

  • The method of the quote to coverage is slow and not instant.

Buying insurance online vs an agent

The digital revolution has changed the way we buy car insurance. The online mode of purchasing vehicle insurance offers convenience, instant coverage, and any time access. Today it has become easy to get information and compare different plans before buying the right car insurance policy for your vehicle.

Here are some comparisons between buying insurance online and an agent to understand which is better.

Points Online car insurance Through an agent
Procedure Faster and hassle-free as there is no paperwork involved. It is cumbersome and challenging as there is documentation and paperwork.
Time factor A quick process. A lengthy process.
Insurance cost Low-cost and affordable Higher since you need to pay a commission to the agent.
Customer support 24/7 support It might not be available all the time.
Renewal Quick and fast insurance renewal. You may have to wait till the agent pays the premium.
Payment Online payment through UPI, Net Banking, etc. May have to pay in cash or cheque.

Overview of digital insurers

The digitalisation of different processes is changing how you transact with a company, especially in the insurance industry. Whether you want to buy, renew or raise claims, digital insurers such as ACKO are at the forefront of removing obstacles in the process of insuring a motor vehicle. The unique benefits of digital insurance offer the scope of instant car insurance policy, faster claim settlements and round-the-clock customer support.

Role of agents/car dealerships in car insurance

You had to purchase car insurance only through an agent or a car dealership in the past for a new car. However, that has changed with the advent of the internet and the option to buy insurance plans quickly through the online platform. While agents and dealerships offer car insurance plans, they charge you a commission for their services. Here are some of the primary roles of an agent or a car dealership in car insurance.

  • Help you understand the benefits of the insurance policy.

  • Act as a mediator between the insurance company and you.

  • Complete the required paperwork and documentation.

  • Provide a personal relationship when you purchase a car insurance plan.

How can car insurance be purchased directly from the insurer?

The digital platform of a website or a mobile application enables you to buy car insurance directly from the insurer. Here is how you can purchase car insurance directly from ACKO.

  • Step 1: Visit our website or download our mobile app on your phone.

  • Step 2: Enter details of your car and previous policy (if available).

  • Step 3: Select the plan and include valuable add-ons if needed and pay the premium to insure your car.

You will receive the policy document by email or you can download the policy.

Tips to save money, time and effort in buying car insurance without commission

Here are some tips when buying car insurance without commission.

  • Opt for IRDAI licenced insurance companies such as ACKO.

  • Take advantage of online transactions through the website and mobile app for a faster turnaround.

  • While you can also buy car insurance by visiting the branch, it is time-consuming, and initiating the coverage can be cumbersome.

Frequently asked questions

Here are some common queries about buying car insurance without a commission.

Is online car insurance cheaper than buying from an agent?

Yes. With a direct-to-customer approach, no agents are involved in issuing the insurance policy. Along with the exclusion of commissions, the digital infrastructure reduces the operating cost of the insurer. Hence, the savings are passed on to you through low-cost car insurance plans.

Is it legitimate to buy car insurance online?

Yes, car insurance purchased from IRDAI licenced insurance companies such as ACKO is legitimate and is accepted by relevant authorities such as the traffic police.

Is it mandatory to buy car insurance from the car showroom?

No, it is not mandatory to purchase car insurance from a car dealership. You can insure your brand new car with ACKO without any hassles. Visit our website or mobile app and provide us details regarding your vehicle and personal information, and our support team will get back to you with a low-cost car insurance quote for your car.

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