The excitement of buying a new car can override thoughts of car insurance. Most buyers are just itching to drive away into the sunset with their new car and everything else takes the back seat. However, when you buy a new vehicle, you must spare a thought for car insurance. It is an essential safety measure that keeps your new vehicle safe on the road.
In this regard, most dealerships will help you with insurance plans for your new car. At that moment it might seem perfect – just sign, make the payment and you’re good to go! Not only will you have a new car but you’ll also get the insurance needs sorted out with ease. But car insurance offered by your dealership might not be what’s best for you; this article will explain why and hopefully give you enough reason to buy your insurance plans separately.
- No choice.
Considering the importance of car insurance, being able to compare plans & select one that best suits your needs is extremely important. However, your dealer might have a tie-up with one or two motor insurance companies at the most. And as far as choice goes, you will be limited to these service providers.
- The cost.
One leading financial publication found that car insurance premiums for a medium-sized sedan would set you back by almost Rs. Rs 35,000 when purchased at a dealership. On the flipside, similar coverage was available for Rs. 26,000 if purchased separately. The publication found this disparity for different types of cars and observed a general gulf of around 5000 to 8000 in the pricing between dealership prices & independent plans.
- Buying what you don’t need.
Another disadvantage of buying car insurance straight from your dealer is that you might be buying protection you don’t need. Most dealership will have policies that include unwanted add-ons to drive up the cost of the plan. However, when you buy the plan from elsewhere, you can choose the add-ons you want and ignore those you don’t need. This helps you get protection that’s more suited for your needs and possibly at lower rates.
- What you should do:
The entire process of buying a new car should take at least 3 days. This gives you enough time to compare your options. See what your dealership has to offer and see what you can get if you go independently. Make a decision only after you have thoroughly sized up your options.
- The internet makes things easy!
If you were worried about a complicated buying process, you should remember that you have the gift of the internet by your side. With it, you can buy your online car insurance policy with nothing more than a few tap & clicks. You won’t even have to visit a branch or provide any physical paperwork – it’s all digital and super-convenient.
Car insurance is important. Don’t settle for insurance provided at the dealership just because it’s convenient. There could be better protection available at much lower prices out there; all you have to do is take a little time out to find it. Good luck and all the best with your new car!