Car Insurance

POSTED BY Ram ON April 11, 2012 11:05 pm COMMENTS (6)

I am thinking of buying a car and I noticed that the insurance amount in many cases that is loaded on by the dealership is very high (maybe they get their own cut). As an example, the insurance amount for one of the cars I was looking at was around Rs. 19,000 whereas I checked that if you buy online from (example) Bajaj Allianz, it came to around Rs. 13,000. That’s a full Rs. 6,000 less!

Does anyone have an experience of telling the dealer that you will buy your own car insurance and, despite a disappointed car dealer, saved a lot of money in the process? Is the process straightforward or are there major hurdles?

From my understanding, the Bajaj Allianz policy could be just purchased online, like a term insurance.

Manish, if the responses are positive, this could be an addition to the “how to save money” ways that you were researching some time back.

Thanks,
Ram.

6 replies on this article “Car Insurance”

  1. Archana says:
    July 18, 2017 at 11:24 am

    Hi Ram, always keep in mind that whenever you are going to buy a car , the authorized dealer also provides you with car insurance policy that you need to sign at the time of signing car papers. However, dealers always provide you those car insurance polices who have tie up with them. So whenever you are purchasing car insurance or renewing car insurance, make sure that you first compare all the car insurance policies online and then choose the best one for yourself.

    Thanks

    Archana

    Reply
  2. Ram says:
    April 12, 2012 at 10:22 pm

    Ashal & Ramesh, thank you both for your inputs – insightful as always. The points raised by both of you are very valid.

    Thanks,
    Ram.

    Reply
  3. Ramesh says:
    April 12, 2012 at 12:46 pm

    Important thing to remember is that see if the insurance company provides cashless facility for that car and for that dealer. Sometimes, there is cashless facility from only 1/2 insurance companies with that particular dealer. In that case, getting cashless facility is a better option than any other.

    Usually, car dealers make a bulk insurance kind of deal with the insurance company, in that case, it is better to go with the car dealer.

    Reply
  4. ashal jauhari says:
    April 11, 2012 at 11:13 pm

    Dear Ram, If the car you are purchasing is offered on free insurance by Car manf. or Dealer under any scheme you have to accept that insurance.

    In case you have to pay from your own pocket for the insurance of your new Car, you can definitely go for that Bajaj policy. In fact any policy. Just make sure the policy is issued before the vehicle is out from dealer’s show room.

    Thanks

    Ashal

    Reply
    1. Ram says:
      April 11, 2012 at 11:35 pm

      Dear Ashal,

      Is it easy to coordinate that? I mean that the policy should be in effect before leaving the showroom. The policy would require details of all sorts regarding the car, right? The dealer might make life difficult, no?

      Also, the insurance is not free. One dealer I spoke with specifically said that Rs. 19,000 is for the insurance.

      Thanks,
      Ram.

      Reply
      1. ashal jauhari says:
        April 11, 2012 at 11:39 pm

        Dear Ram, What I mean was, before taking the final delivery from the dealer, you can arrange for insurance of your car during pre-delivery inspection/check up at dealer. Why? If you are not taking insurance from dealer & driving the car on road to insurer’s office & if in between any accident happens, all damages ‘ll be on you to pay out. Be it for yourself, your car or to any 3rd party?

        Thanks

        Ashal

        Reply

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