Whether you’re travelling to work or going on a road trip with friends, your car is a constant companion. Owning a vehicle adds to the feeling of being self-reliant and gives you a sense of freedom. With more than 35 domestic and international car brands available in India and hundreds of models, ranging from hatchbacks to sedans to SUVs, there’s something for everyone. If you’re planning on buying a new vehicle, you may be wondering whether to purchase car insurance from the dealer or directly from the insurer.
Choices galore, not only in car models, but also in the type of motor insurance policies you can get. While the car dealer may offer insurance, you can always purchase car insurance from a trusted insurer or check online aggregator sites to make a decision. To answer the question whether it is mandatory to purchase car insurance from a car dealer, the answer is ‘No’. Here’s a look at whether it’s mandatory to have motor insurance and which way to purchase car insurance is most beneficial.
Is Motor Insurance Mandatory in India?
Yes, it is mandatory to have third-party motor insurance in India. This gives you financial protection in case of damages to a third party. If your car is involved in an accident that causes any physical injury, damage to another vehicle, damage to someone’s property, or death of a person, your motor insurance policy will cover the costs.
It is a good idea to purchase car insurance that also covers damage and theft of your vehicle. There is a wide range of policies available, with several add-ons.
Options to Purchase Car Insurance
Wondering what is the best way to purchase car insurance? Here’s a look at the pros and cons of each way:
Buy Car Insurance from Car Dealers
Buying motor insurance is made easy by car dealers who bundle the premium with the overall cost of the vehicle. While this is the most convenient way to purchase car insurance, car dealers often promote insurance providers that offer them higher incentives or benefits. This means the premium and cover may not be the most appropriate one for you.
By buying motor insurance from the car dealer, you are missing out on the chance to compare various plans and the benefits offered by them. Not all car dealers are well versed with insurance policies and may not be the best guide for buying a motor insurance policy.
Buy Car Insurance from Online Aggregators
A cost-effective way to purchase car insurance is to compare different policies available in online marketplaces. This includes policies from insurance providers who may not have a tie-up with your car dealer. Online aggregators allow users to easily compare features, covers, premiums and terms of different motor insurance policies. You can also check the claim settlement ratio of different insurers. This allows you to make an informed decision and purchase car insurance that gives you the desired cover within your budget. A key advantage is that there is an opportunity to get personalised insurance solutions when you opt for online aggregators.
The process of buying motor insurance via online aggregators is simple. All you need to do is to provide personal details, along with the engine and chassis numbers of the vehicle. Once the policy is received, the same can be handed over to the car dealer for registration of the vehicle.
Buy Car Insurance Directly from Insurer or Authorised Agents
You can get in touch with an authorised insurance agent to explain the different features and benefits of the plans. This way, you can ask the agent all the questions you may have before buying motor insurance.
It’s always exciting to get a new car. If you’re selling your old car to buy the new one, you can transfer your motor insurance to the new vehicle. While it is not mandatory to purchase insurance from the car dealer, you need to have the motor insurance in place before taking delivery of your new vehicle and driving off with it from the showroom. Happy & Safe Driving!
