When buying a new car or bike, most dealers or showrooms offer to bundle insurance along with the vehicle. While this may seem convenient, it’s important to know whether it’s the right choice. Should you go with the showroom’s in-house insurer, or compare and buy your own policy online or via an agent? Let’s explore the pros, cons, and what’s best for you.
1. Why Do Showrooms Offer Insurance?
Most auto dealerships have tie-ups with specific insurance providers. They offer pre-filled policies and quick activation as part of the vehicle purchase. This saves time for both the dealer and the buyer, and sometimes includes bundled discounts or freebies like basic accessories.
2. Pros of Buying Insurance Through Showroom
- Convenience: All paperwork is done by the dealer. You drive out with the vehicle and insurance in hand.
- Instant Issuance: Insurance is activated the same day, with registration synced for delivery.
- Cashless Claims (Sometimes Promised): Dealers may promise faster claim processing with their preferred insurer network.
3. Cons of Buying Insurance Through Showroom
- Limited Options: You’re often not shown other insurer quotes or plans with better features.
- Higher Premiums: Dealership insurance is frequently overpriced, as it may include agent commissions.
- No Customization: You may miss out on valuable add-ons like Zero Depreciation, Engine Protect, or Roadside Assistance unless you request them explicitly.
- Reduced Transparency: You might not know your exact insurer until after delivery or may be handed a policy you didn’t choose.
4. Benefits of Choosing Insurance Yourself
- More Choices: You can compare policies from 20+ insurers online and select the best coverage and pricing.
- Better Add-ons: You get to choose plans that include zero dep, consumables, return-to-invoice, and more.
- Lower Premiums: Buying directly often means lower prices, with no middlemen commissions.
- Cashback & Discounts: Some online platforms (like ours) even offer cashback on your insurance purchase.
5. When is Showroom Insurance a Good Option?
- You need insurance urgently and want a hassle-free, all-in-one package.
- You trust the brand/dealer and are getting a fair quote with the right add-ons.
- There are special offers (accessories, waiver on RTO charges, etc.) tied to bundled insurance.
6. When Should You Avoid Showroom Insurance?
- If you’re not shown full policy documents or allowed to choose the insurer.
- If you’re paying more than market rates without sufficient coverage benefits.
- If you want more control over claims, add-ons, and future renewals.
7. Final Recommendation
Buying insurance from the showroom is convenient, but often not cost-effective. It’s always wise to compare plans from trusted insurers like HDFC ERGO, ICICI Lombard, Bajaj Allianz, and others. You’ll not only get better coverage but also save money.
At VehicleInsurance.co.in, we help you compare insurance plans for free and even offer cashback when you purchase via our platform. Make an informed choice and protect your vehicle the smart way.