Where to Buy Car or Bike Insurance in India? Dealer vs Online Comparison

Imagine this - you’ve finally saved up enough money to buy a car you’ve been wanting to purchase for a very long time. When you go to the showroom to buy the car, the salesperson starts talking to you about insurance for the car. He explains how you can get extra discounts if you also buy insurance along with the car. While he’s explaining, you start to wonder…

Should you buy from them? Or should you purchase from an insurance company? You also have the option of buying from a web aggregator platform. So, where should you buy from? What are the benefits and drawbacks of buying an insurance plan from each of these options?

Let’s find out!
 

Pros & Cons of Buying Motor Insurance From Various Outlets

Buying From A Dealer

Vehicle dealers may facilitate motor insurance at the time of purchase. In such cases, they typically operate as Motor Insurance Service Providers (MISPs) or insurance intermediaries associated with insurers. They usually bundle the insurance product while selling the car/ bike.

Pros

• Purchasing insurance from a dealership is very simple, convenient, and hassle-free. Dealers may present insurance options from insurers they are associated with. However, the customer has the freedom to review these options and choose the policy.

• You may get special bundling discounts as the vehicle purchase and insurance are bundled together.
• All your queries and doubts will be instantly cleared by the dealer.
• At the time of claim too, you can get in touch with the dealership for assistance.

Cons

• Auto dealers have tie-ups with specific insurance companies only. So, your options will be limited.

• Dealers may receive remuneration from insurers for facilitating the sale of policies. However, the premium paid by the customer is determined by the insurer.
• Since you’re purchasing directly from the dealer, you won’t be able to compare the cost, features, benefits, etc. of policies across insurers.
• Some dealers may add specific add-ons, voluntary deductibles, etc. to the policy without informing you. So, if you’re buying from a dealer, ensure you check all the details before going ahead.
   

Note: As per IRDAI guidelines, customers are free to purchase motor insurance from any insurer or intermediary of their choice. Vehicle dealers cannot make it mandatory for customers to buy insurance from the dealership
 

Buying from Insurance Company Websites

You can purchase an insurance plan for your car directly from the insurer's website. All processes, like the form-filling, documentation, payment for the policy etc. will take place on the website itself.

Pros

• Purchasing a policy from an insurer's website will give you assurance that the product you’re buying is genuine.
• You can also get first hand information about the plan you're considering to buy.
• Most insurance companies offer 24X7 assistance; both before and after you purchase the insurance plan. So, you can reach out to them in case you have any queries.

Cons

• You won't be able to compare multiple policies from different insurers on the same page.

• There are chances your queries and doubts may not get resolved quickly.
• The claim process of a few insurers can be a bit tedious. You may have to go through some hassles to get in touch with the insurer while applying for the claim.
• There won’t be a single point of contact. Every time you call the insurance company’s customer care, you’ll be connected to a different agent.
   

Buying from Web Aggregators/Brokers

Insurance web aggregators are IRDAI-regulated intermediaries that operate online platforms where customers can compare insurance products from different insurers. So, you can research, compare and choose a plan as per your preferences.

Pros

• You can easily compare the features, benefits, premiums, etc. of several types of insurance policies side by side.
• Sometimes, you may also get exclusive discounts and offers that you won't get anywhere else. Hence, the premiums might be low compared to insurance websites and dealers.
• Compared to other outlets, your experience might be smoother, as the systems of aggregator platforms are more robust.
• The insurance broker or web-aggregator will handle the claim - not the insurance company. So, you can get in touch with them if you require help or guidance during a claim.

Cons

• Customers should ensure they purchase policies through IRDAI-registered insurers or intermediaries, as licensed entities must follow regulatory requirements and professional standards.
• Brokers and web aggregators may not have a tie-up with some insurers. Hence, you may not find each and every insurance company’s quote on their portal.
• Agents of brokers and aggregator platforms have a target to complete. So, they may insist on closing the deal without providing proper details. And, if they have a premium-based target, they may persuade you to take a policy with a higher premium.

So, these are some of the benefits and drawbacks of buying an insurance plan for your vehicle either online from the insurer or web aggregator’s website or offline from a car/ bike dealer. Make sure you weigh the pros and cons of each of these options carefully before deciding where to buy the policy from.