Considerations before choosing non dealer insurance when buying a car

I went online to search for insurance quotes, but I wasn't getting the highest IDV possible

BHPian V0rtex recently shared this with other enthusiasts

Last day I went to the Royal Enfield showroom to inquire about the new Interceptor 650. Multiple showrooms have quoted me different prices. The variant here is the insurance, I'm aware that I can take the insurance from outside. The folks at the showroom said that I have the option to take insurance from outside, but if I choose their insurance then it would be much easier for me to make claims. If one were to get insurance from another company, what are some things to look out for. Should I keep my IDV value as high as possible ( invoice rate)? How about the addons like engine protection, road side assistance and invoice price cover?

I went online to search for insurance quotes, but I wasn't getting the highest IDV possible along with Engine protection, bumper to bumper, and invoice price cover. How can I sort this out.

Here's what BHPian Shreyans_Jain had to say on the matter:

Straightforward answer: absolutely none.

There are no considerations between choosing dealer provided insurance and outside insurance. Insurance is insurance. This whole idea of it being ‘outside’ and somehow more difficult or complicated is a scam created to make unsuspecting and unaware customers to pay more for the same thing. No dealer can compel you to buy insurance from them.

Get your insurance from wherever it cheaper. Be it dealer or agent or online. The basic tenets of buying remain the same: reputed provider, cashless coverage, zero dep coverage, hydrolock protection, max IDV for a new vehicle. You can get the best possible quotes from outside and ask the dealer to match it. If they do, great. Else, but it on your own.

Here's what BHPian vattyboy had to say on the matter:

Claims are easier from Dealer Insurance is SCAM.

All the dealers try to justify their high rates by saying the above line.

My suggestion based on What I do:

I go to the ASS of the brand and meet their SA and I ask them for the name of the Insurance companies which have cashless tie up with them.

After this, I ask the dealer to match the insurance quotation which policy Bazar is giving. If the dealer matches it then good but if they don't I buy it from the policy bazaar.

For new vehicle add-ons like zero depp, RSA, and return to invoice engine protection are recommended.

Here's what BHPian condor had to say on the matter:

Vehicle in warranty / extended warranty: go with dealer. Do negotiate.

Vehicle out of warranty:

• Continue with dealer provided insurance coverage.
• Can take insurance outside, but best if your FNG and that insurance provider have good relationship.

Here's what BHPian lsjey had to say on the matter:

This has been my strategy so far in purchasing insurance for my cars:

Find out from the body shop manager of the ASS a list of insurers who are good in claims settlement and have shorter lead times for approvals. I usually stick to the same service center through the life of the car.

Get quotes from the list of insurers provided by the body shop manager using the same service dealership.

Take policy from insurer who offers the maximum tariff discount. Typically it will be > 65% . I also build a good relationship with the service head and ask for further discounts. I tend to get some discount voucher for about 1K which I can use for service or for the insurance purchase.

I never take insurance from the new age insurance providers.

I don’t mind spending about 10% extra to get the insurance policy through the dealer as it helps in building relationship with key people in the service center.

I buy a bunch of add-ons like RTI, engine cover, bumper to bumper cover, depreciation cover etc. There will be no discounts offered on these add-ons. Only on the base tariff there will be discounts

I always present my AASI (Automobile Association of South India) membership and get a few hundred rupees discount in the premium. Also I ensure and check if my NCB is accounted and discounts have been provided.

Hope this helps.

Regards,

Lsjey

Hre's what Motard_Blr had to say on the matter:

If you go to the same insurer as the one the dealer is pushing on you, it's likely you will get a cheaper quote since the dealer's commission is removed.

You can even get discounts based on your profile rather than the standard premium. These can be based on age, history with the company, your credit score, etc. Anything that tells the insurer that are lower risk than average can be considered favorably.

In my experience, it's not difficult to talk to the insurance company call centre and request for changes in the proposal. It might take a few calls but it shouldn't be difficult.

Here's what BHPian jalsa777 had to say on the matter:

Buy from where you get it cheaper.

Ease of processing because you bought it from the dealer is a scam. In fact, usually the sales please and the service centre don't even talk to each other, so there's no question of processing ease.

• All insurance products must abide by the same rules set by IRDAI and thus the difference between products is not very high.
• All insurance companies process cashless claims when you go to authorized service centre. It's actually in their benefit to do so.
• New age insurance companies can charge substantially lower premiums because their marketing overheads are negligible. (The amount of money traditional insurance companies spend on perks for their agents is alarming).
• As long as your claims are genuine, insurance companies will honour the claims. I always fill the claim form myself.
• You can also opt of voluntary deductible plans. They will give you a discount of 2k on the premium but if you claim, you will have to bear that 2k cost a the time of claim. You save upfront and in case if you do make 1 claim, you still don't lose any money. Different matter if you make more than 1 claim. So, that depends on your risk appetite.

The difference in dealer quoted insurance and outside insurance can be huge. Currently, i have to renew my insurance and dealer sent me a quote of 33k while i can get it outside with a new age insurer for 14k

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