Pros And Cons Of Buying Motor Insurance From A Car Dealer

Nowadays, owning your own dream car has already become simple due to the easy availability of auto loans and EMIs. However, you must wait until the automobile is insured before driving your precious new possession off the lot. Read on to know why!

Through a partnership with the insurance firm, auto dealers have long provided insurance to customers. While purchasing car insurance directly from the dealer can save time, there may be drawbacks as well. 

Let’s examine the benefits and drawbacks of purchasing auto insurance from a car dealer.


Purchasing auto insurance directly from an automobile dealer will undoubtedly save a lot of time. Otherwise, one would need to contact more insurers, find out their premium costs, and make a decision. Here are a few additional benefits:

  • Buying insurance through a dealership streamlines the procedure and makes it easier.
  • The dealer will be able to provide add-ons if one needs to purchase them. Some other services might also be packaged from the dealer’s perspective.   
  • Some of these dealers may have a dedicated helpdesk for insurance questions and claim support, which may be useful when needed.


Insurance purchased from a dealership has its drawbacks:

  • The dealers may occasionally offer a pre-packaged policy with a variety of features. Even if not all of them are necessary, the cost of getting the car insured through the dealer is more than average. 
  • The car dealer will have connections to particular insurance providers. You will only be able to buy the insurance options offered by these providers as a customer. 
  • You cannot compare policies from other insurers when purchasing comprehensive car insurance from a dealer. Choosing insurance coverage requires taking this step very seriously.
  • Without specifying it to you, dealerships may load optional excesses or add-on coverage under your vehicle insurance policy. Before you sign on the dotted line, pay attention and carefully read the insurance coverage. You will be responsible for a sizable portion of the claim amount if your policy has a high voluntary excess value. If you purchase add-on coverage that doesn’t fit you right, it will merely increase your premium without providing any other advantages.
  • The insurance rates provided by the car dealer might not be most competitive     . Customers may not save money with this purchase, even though they do save a lot of time. Insurance companies and car dealers collaborate on a commission basis. As a result, the consumer might be obliged to pay greater premiums than they would if they bought third-party car insurance online in another way.


How Should You Proceed?

The full car-buying procedure could take two to three days in the dealership. Investigate alternative insurers and purchasing options, like internet purchasing, in the meanwhile. Calculate the final costs after the concession and decide which time and money-saving strategies are most effective for you.#

##All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.