scorecardresearchHow to choose the right motor insurance policy?

How to choose the right motor insurance policy?

Updated: 23 May 2022, 07:40 AM IST
TL;DR.
Car buyers can refrain from buying insurance from dealers. Although it is offered as a package deal, it may not be the best option in terms of benefits it offers
While buying a car, buyers usually forget that motor insurance is a key aspect of buying a car.

While buying a car, buyers usually forget that motor insurance is a key aspect of buying a car.

At the time of buying a car, buyers generally get too engrossed in the car model, brand, and even the add-on features that come with the car. During this phase, they tend to forget that motor insurance is another key aspect of buying a car.

Motor insurance plays a key role in ensuring that both you — the car owner — and the vehicle remain insulated from sudden financial expense that could come up after an untoward accident.

Buy insurance from dealer?

More often than not, what happens is that you go to purchase a car, and the car dealership offers the motor insurance along with the vehicle. And accepting that as a good package deal, you tend to accept it without asking too many questions.

However, what you might not be aware of is that the car dealership is not a registered insurance agent and perhaps they have only partnered with an insurer for this ‘package’ deal.

“Buying motor insurance from a car dealer at the time of car purchase may seem like a time-saving and hassle-free deal, especially for first-time vehicle owners. But if you did some research with an online insurance broker directly, you would get a better deal,” says Ashwini Dubey, Head, Motor Insurance Renewals, Policybazaar.com.

"It is better to buy directly because you can save a little money, often. Also, a separate purchase also allows you to customise the add-ons you want better," said Kapil Mehta, Co-Founder and CEO of Secure Now insurance.

Any job done hurriedly is prone to have repercussions. Similar is the case with buying a motor insurance cover. When you buy a motor insurance, the car dealer can thrust upon a policy that is expensive than what you will find outside because it has a number of add-ons — which you may not even need.

Similarly, the policy being sold to you may not have certain add-ons which you would otherwise have chosen but since they were not mentioned by the car dealer, you would more likely miss them.

In such a case, you might have to buy those add-ons later on, and they would prove to be more expensive. So, the key is to not buy something which you might regret later on.

Buy online

Buying a car insurance is quite convenient when you do it online. So, in case you are not convinced by what is being sold to you at the car dealership, you can simply choose your favourite insurer and choose an option it offers. And this is how, you can make a conscious decision of choosing one policy over other available options while being fully aware of the pros and cons.

“The process of buying insurance online is as easy as booking a flight ticket. One of the biggest advantages of purchasing insurance cover online is that there is minimal paperwork. Also, one can compare prices and see the cost-reduction in policy prices in real-time,” adds Dubey from Policybazaar.

Article
What should one be careful about at the time of buying a motor insurance policy.

This, however, may not turn out to be the best thing for your car, but at least you knew beforehand what you were getting into.

To sum up, buying a motor insurance ought to be seen as a separate transaction from the car purchase. So, don’t fall into your car dealer’s trap. Make a calculated move and buy only the cover you are most convinced with, and importantly what is available for a reasonable premium.

First Published: 23 May 2022, 07:40 AM IST