Why You Should Buy Car Insurance Online And Not From Your Car Dealers?

By on January 4, 2019
Car Insurance Online

When you set out to buy a car, you may be presented with the entire package that includes the car, its accessories, and car insurance. This practice is common in India and one may not give much thought to buying car insurance from the car dealer. However, this can prove to be a straight out disaster in case of claims. In this article, we will take a look at why one should buy car insurance online. But before that let’s consider the ways in which you can get your car insured.

How to buy Car Insurance?

One can buy car insurance in many different ways. The process can broadly be divided into two parts – online and offline. If you opt for the online method, you can complete the process by yourself and you do not require the help of any other person.

The offline method can be further classified into various parts depending upon whom you approach. You can buy your car insurance policy from various entities like:

  • Your car dealer: The IRDAI i.e the Insurance Regulatory and Development Authority of India has allowed car dealers to sell insurance policies on behalf of an insurance company of their choice. Thus, they suggest a policy when you approach them for buying a car.
  • An insurance agent: An agent is affiliated to one insurance company and can sell policies on their behalf. You can approach an insurance agent if you wish to buy a policy for a certain insurance company. He/she will guide you to buy a suitable policy.
  • A broker: An insurance broker can sell car insurance policies from multiple insurance companies. You can seek his/her advice and buy the most suitable policy after quick research.
  • Directly from the insurance company: You can directly get in touch with your preferred insurance company and buy a policy of your choice.

Why should you buy car insurance online?

Following are the reasons why one should buy a car insurance policy online and not from the car dealer

  • Coverage: Your car dealer may suggest certain coverage options that you do not require. For example, you may not require a passenger cover if you are planning to drive the car alone for most of the times. You can easily take care of these things if you buy car insurance online.
  • Comparison: A car dealer may not compare car insurance policies. However, you can easily compare various suitable policies with the help of online tools. The process of comparison is easy and can be conducted by a technically challenged person as well.
  • Research: A car dealer may be affiliated to multiple companies. While selling insurance, there may a lack of research and a policy that is not suitable to you may be presented. If you buy car insurance online, you can do research on various policies that suit your needs.
  • Time taken: The offline method needs a few working days to generate a car insurance policy whereas, you can receive it instantly when buying car insurance online.

What is car insurance?

Car insurance is a type of motor insurance that protects your financial interests in case of any unfortunate events involving your car. Technically, it is a contract between a policyholder and an insurance company that lists the terms and conditions under the insurer will and cannot extend financial support. Car insurance works on the principle of indemnity. This means, your insurer will compensate you in case of the occurrence of certain predefined conditions.

Car insurance is of two types – Third-party car insurance and Comprehensive car insurance. The former type provides limited coverage and may prove to be insufficient to the policyholder. Buying at least this type of car insurance is mandatory in India under The Motor Vehicles Act, 1988. On the other hand, a comprehensive policy provides extensive coverage and is slightly expensive than the basic one. Buying a comprehensive policy is not mandatory by law. However, it is the highly suggested alternative that can provide better coverage.

The Bottom Line

Buying the policy from your car dealer may not be a good idea and can leave you underinsured. To avoid this, always buy car insurance online and make the decision yourself. In case of doubts don’t hesitate to get in touch with the insurance company.

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