Car Insurance: Be careful while buying car insurance, otherwise you will have to data-face problems later. 

Most car dealers are not insurance experts and are in the business of selling cars. Therefore, the points applicable to your policy may be ignored.

Car Insurance Policy Tips

Buying car insurance from an auto dealer may seem convenient, given that it helps save time and provides one-stop convenience. However, this may not be your best decision. Today we are here to tell you why you should think before buying car insurance from the dealer.

Having limited options 

The main reason for not buying car insurance from a dealer is lack of comparison. car dealers usually have partnerships with only a limited number of insurance companies, and often only one. This doesn't leave you with many options. Due to this, you are not able to choose the best insurance policy as per your needs and budget. “Motor dealers typically work with a limited number of insurance providers, which means you may not have access to a large range of insurance options,” says rahul M Mishra, co-founder and director, of PolicyEnsure. This can make it difficult to choose the most suitable policy for your needs and budget.

Biased advice

Motor dealers may be financially incentivized to sell insurance policies from a particular provider company or their recommendations may be influenced by commission or tie-in agreements, causing the dealer to purchase a policy from the same insurance company when selling the insurance policy. Give more emphasis on premium

Dealers often focus on maximizing their profits by earning higher commissions, which are charged from customers in the form of higher premiums through insurance companies, and a part of that commission is passed on directly from the insurance company to the dealers. rahul Mishra says, “Insurance policies purchased through motor dealers may come with higher premiums. These policies often include additional fees or markups, making them more expensive than policies you can find independently.

Limited Expertise 

Most car dealers are not insurance experts and are in the business of selling cars. Therefore, points in your policy that are suitable for you may be overlooked, leaving you more likely to be left with inadequate cover when you need it. On the other hand, a policy broker can provide a much more personalized service focusing on your coverage needs, risk profile, and budget.

Difficult claim process

Buying insurance from a dealer often means that they manage your paperwork. Although this may seem attractive in the beginning, in the long run, you may find yourself in unnecessary trouble because you cannot directly control the process. Mishra says, “If your insurance is linked to a motor dealer then the process can be more complicated in case of a claim. Whereas dealing directly with an insurance company or insurance agent often makes the claims process easier."