Purchasing a new vehicle is an exciting experience, but alongside the joy of owning a new car comes the responsibility of choosing the right car insurance. While many car dealerships offer insurance packages, you also have the option to buy car insurance online from various insurance providers. Choosing non-dealer insurance has its advantages, but it is important to carefully evaluate several factors before making a decision. This article explores the key points to consider when selecting non-dealer insurance and understanding the type of car insurance that suits your needs.

What is non-dealer insurance?

Non-dealer insurance refers to car insurance purchased from an insurance provider independent of the dealership where the vehicle is bought. When buying a vehicle, many dealerships have tie-ups with specific insurance companies and offer bundled insurance packages. However, buyers are not obliged to purchase insurance from the dealer. They can explore policies offered by other insurance providers either directly or by opting to buy car insurance online.

Types of car insurance to choose from

Before selecting non-dealer insurance, it is essential to understand the type of car insurance policies available. Car insurance policies are generally classified into two main types:
1. Third-party insurance: This is the most basic form of car insurance and is mandatory under the Motor Vehicles Act in India. It covers damages caused to a third party in the event of an accident, including bodily injury, death, or property damage. However, third-party insurance does not cover any damages to your vehicle.

2. Comprehensive insurance: A comprehensive policy offers more extensive coverage by covering both third-party liabilities and damages to your own vehicle. It protects against a wide range of risks, including theft, fire, natural disasters, accidents, and vandalism. If you are buying a new vehicle, opting for a comprehensive policy is highly recommended for better protection.

Advantages of choosing non-dealer insurance

When buying a vehicle, you are not limited to the insurance options provided by the dealer. Opting for non-dealer insurance offers several benefits, including more flexibility, the ability to compare plans, and potential cost savings. Here are some key advantages of choosing non-dealer insurance:
1. Better price comparison
One of the main advantages of selecting non-dealer insurance is that you have the freedom to compare different insurance providers and their offerings. When you buy car insurance online, you can use insurance comparison tools to check premium rates, policy benefits, and additional features from multiple insurers. This allows you to choose a policy that offers the best value for money and suits your specific needs.
2. Tailored policies
Dealerships typically offer bundled insurance plans that may not cater to the specific needs of every buyer. When opting for non-dealer insurance, you can select a policy that is tailored to your preferences. For instance, if you live in an area prone to natural disasters, you may want a policy that offers enhanced coverage for flood or earthquake damage. The ability to customise your policy ensures that you get the coverage you need without paying for unnecessary add-ons.
3. A wider range of add-ons
Non-dealer insurance allows you to choose from a wider range of add-ons and optional covers, which are often not available in dealer-provided policies. Some valuable add-ons to consider include:
● Zero depreciation cover: This add-on ensures that in the event of a claim, you receive the full value of the parts being replaced, without factoring in depreciation.

● Engine protection cover: This covers repairs or replacement of engine parts in case of damage due to water ingress, oil leaks, or other causes.

● Roadside assistance: Provides assistance in case your vehicle breaks down, offering services such as towing, fuel delivery, and flat tyre replacement.
Having access to a variety of add-ons helps you create a comprehensive policy tailored to your needs.
4. Transparency and control
When you buy car insurance online, you have full control over the process, and everything is transparent. You can read through the policy terms and conditions, evaluate coverage details, and understand what is included and excluded before making a decision. This level of transparency ensures that you are fully aware of the coverage you are getting, leaving no room for confusion later.
5. No dealership pressure
Dealers often encourage buyers to purchase insurance through their recommended providers, and in some cases, this may lead to pressure to accept policies that may not suit your needs or budget. Choosing non-dealer insurance allows you to avoid this pressure and make an independent decision at your own pace. You can take the time to research policies and select the one that aligns with your requirements.

Key points to consider when choosing non-dealer insurance

Before opting for non-dealer insurance, it is important to consider several factors to ensure that you are making the right choice. Here are key points to keep in mind:
1. Policy coverage
Make sure to thoroughly review the coverage provided by the insurance policy. Comprehensive coverage is typically recommended for new vehicles as it protects both your vehicle and third-party liabilities. Look for a policy that provides extensive coverage, including protection against theft, natural disasters, accidents, and fire.
2. Premium rates
Compare premium rates from different insurance providers before making a decision. While price should not be the only factor, it is important to find a policy that offers a balance between coverage and affordability. Remember, the cheapest policy may not always provide adequate protection.
3. Add-ons and optional covers
Evaluate the add-ons and optional covers available with non-dealer insurance. Select add-ons that are relevant to your driving habits and environment. For example, if you frequently travel long distances, a roadside assistance cover could be highly beneficial.
4. Claim settlement ratio
The claim settlement ratio of an insurance provider indicates the percentage of claims settled out of the total claims received. Opt for an insurer with a high claim settlement ratio to ensure a hassle-free claims process. This ensures that your claims are more likely to be processed smoothly in the event of an accident or damage.
5. Customer service
Good customer service is crucial when it comes to car insurance. Make sure to choose an insurer with a reputation for responsive and helpful customer service. This will make it easier to resolve issues and queries related to your policy, especially during the claim process.

Conclusion

Selecting non-dealer insurance when buying a vehicle offers numerous benefits, including better price comparisons, tailored policies, and access to a wider range of add-ons. By opting to buy car insurance online, you gain more control over the process and can select a policy that best suits your needs. However, it is important to carefully evaluate key factors such as coverage, premium rates, add-ons, claim settlement ratios, and customer service before making your decision. Taking the time to research and compare policies will help ensure that you choose the right insurance for your new vehicle, providing peace of mind on the road.