Why you shouldn’t buy 4 wheeler insurance from the dealership?
When
you buy a car, it comes with an insurance policy, right? It’s a neat package
that ensures that you do not have worry about the formalities of four
wheeler insurance and that allows you to legally drive your car, right
from the moment it leaves the dealership. But have you ever wondered if the
plan that is given to us is the best option for you and your car? Here are some
reasons why you should look into plans besides the one that comes with the car.
1. The one size that fits all might not
fit you.
The plan that comes to your car is pre-packaged. It is the same one that all other buyers will receive. However your insurance needs might be different, you might live in a flood-prone area, on which case, getting the engine protector cover might be needed. Or maybe your parking spot is under a coconut tree, in which case you might want to get the windshield protector add-on just in case. Or maybe you live in a theft-prone area and would like protection for your personal belongings as well?
One thing is for sure, the 4 wheeler insurance policy that comes with the car might not offer all these benefits. This could leave you under protected and open to financial losses. This is the first reason why you should not trust what’s given to you and look for plans independently, those that provide the cover you want.
2. Why pay for what you don’t need?
The flipside of opting for a pre-packaged plan is that you could be getting a plan that provides more cover than what you need. They might throw in add-ons that give you an added sense of protection but you will probably never use. Isn’t that as good as flushing your money down the drain?
3. Maybe it’s just not the right plan.
The only reasons we compare plan is because not all of them are good. The process of evaluation helps us weed out plan that aren’t of the right pedigree. However, dealerships will have a tie-up with just one or two plans and while these plans will help you save time, there is no guarantee that the plan you get is the plan that gives you the best protection.
4. You should pay for cover, not commission.
Dealers and insurance companies work on a commission basis. When you choose the plan that comes with the car, you could be paying extra to cover the commission to the dealership. This is obviously not something you want.
It is because of all these reasons that the IRDAI issued this statement – “it is advised that no Motor Insurance Service Provider (MISP) or the insurance intermediary can enter into an agreement with the OEM which has an influence or bearing on the sale of motor insurance policies." In the end, you are the consumer and it is your choice, but it is best that you compare plans independently before you go with the one that comes along with the car.
The plan that comes to your car is pre-packaged. It is the same one that all other buyers will receive. However your insurance needs might be different, you might live in a flood-prone area, on which case, getting the engine protector cover might be needed. Or maybe your parking spot is under a coconut tree, in which case you might want to get the windshield protector add-on just in case. Or maybe you live in a theft-prone area and would like protection for your personal belongings as well?
One thing is for sure, the 4 wheeler insurance policy that comes with the car might not offer all these benefits. This could leave you under protected and open to financial losses. This is the first reason why you should not trust what’s given to you and look for plans independently, those that provide the cover you want.
2. Why pay for what you don’t need?
The flipside of opting for a pre-packaged plan is that you could be getting a plan that provides more cover than what you need. They might throw in add-ons that give you an added sense of protection but you will probably never use. Isn’t that as good as flushing your money down the drain?
3. Maybe it’s just not the right plan.
The only reasons we compare plan is because not all of them are good. The process of evaluation helps us weed out plan that aren’t of the right pedigree. However, dealerships will have a tie-up with just one or two plans and while these plans will help you save time, there is no guarantee that the plan you get is the plan that gives you the best protection.
4. You should pay for cover, not commission.
Dealers and insurance companies work on a commission basis. When you choose the plan that comes with the car, you could be paying extra to cover the commission to the dealership. This is obviously not something you want.
It is because of all these reasons that the IRDAI issued this statement – “it is advised that no Motor Insurance Service Provider (MISP) or the insurance intermediary can enter into an agreement with the OEM which has an influence or bearing on the sale of motor insurance policies." In the end, you are the consumer and it is your choice, but it is best that you compare plans independently before you go with the one that comes along with the car.
Hope this has been helpful, good luck
and all the best!
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