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Buying Bike Insurance From Dealership vs Online

This article aims to comprehensively analyse the differences between purchasing offline showroom bike insurance and buying bike insurance online. We will explore various aspects such as cost, reliability, renewal benefits, and claim settlement to help you decide which option best suits your needs.

  • 17 Apr 2023
  • min read
  • 610 views

The Motor Vehicles Act has made bike insurance compulsory in India. And there comes the question: Should one be buying bike insurance online or offline?

After finalising the bike's price at the showroom, we often look for the best possible discounts on the price tag. The dealer usually offers us free insurance, which seems like a great deal. But is the insurance free, or does it come at a cost?

This article aims to comprehensively analyse the differences between purchasing offline showroom bike insurance and buying bike insurance online. We will explore various aspects such as cost, reliability, renewal benefits, and claim settlement to help you decide which option best suits your needs. Ultimately, we aim to assist you in making a decision that aligns with your best interests.

Which One is More Beneficial: Buying Bike Insurance From Dealership vs Online

When purchasing a new bike, dealerships often offer buyers the option of purchasing the offline showroom bike insurance directly from them. However, is it the best decision? Is it mandatory to buy it from the bike dealer?

Well, the answer to the second question is no; buying your bike insurance policy from your dealer is not mandatory. For the answer to the first question, let’s dig a little deeper.

Buying bike insurance from a dealership may seem like a convenient option. Dealerships often offer customers insurance policies tailored to the two-wheeler’s specific make and model, which may give buyers peace of mind knowing that they have the most comprehensive coverage available. Additionally, buyers find the process of purchasing insurance from a dealership seamless, as one can complete the formalities and documentation process at the same time as buying the bike. This may be more convenient for some buyers. On the other hand, buying bike insurance online comes with its own set of advantages, like the option to compare a wider range of policies, research, discounts, etc., allowing buyers to make an informed decision.

Overall, the decision between purchasing bike insurance online or offline depends on individual preferences and needs. Let’s look at it in more detail.

Cost

Automobile dealers often include insurance policies in their sales packages. Rather than providing a simple cash discount to customers, they provide “free” insurance. But note that bike insurance can never really be free.

  • The dealer generally offers a non-discounted premium listed as a “free” component of the overall bill.
  • Typically, this “free” insurance is only for the first year, and customers will have to pay the premium in subsequent years.
  • Buying bike insurance offline or showroom bike insurance can be expensive due to additional service charges.
  • The dealership offers limited options, which can make it difficult for customers to find the best policy at good discounts to fit their budget requirements.

Buying bike insurance online eliminates such middlemen and hence reduces the cost of insurance. Moreover, it empowers customers by offering them a choice — the option to browse various policies and compare their prices. This can help customers get the best policy at the lowest possible price. Furthermore, online insurance providers offer competitive pricing as their overhead costs are low. They do not have to pay for physical offices, staff, or other expenses that offline insurance providers or bike dealers have to pay for.

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Reliability of the insurance company

When it comes to buying bike insurance online vs offline, customers need to consider the insurance company’s reliability. This is a critical aspect of purchasing an insurance policy, and one should consider it before purchasing insurance.

  • While buying bike insurance from a dealership seems attractive as it is often labelled "free", customers may not have complete information about the insurance company. This lack of transparency can result in customers making uninformed decisions that may not meet their requirements. For example, the policy may not cover specific damages that the customer may face in the event of an accident.
  • Buying bike insurance online has the benefit of greater transparency and access to information.
  • Customers can read ratings and reviews of various insurance companies and make informed decisions.
  • A higher customer satisfaction rate implies prompt and effective services, making it an important indicator of the reliability of the insurance company.

The internet provides information about different insurance providers, including their policy features, premium rates, and customer reviews. This allows customers to research and compare various options comprehensively.

Customer satisfaction is an important parameter that can help give prospective customers an idea about the quality of services provided by an insurance provider. Reviews and ratings from existing customers can give prospective customers an idea of whether the insurance company is trustworthy and meets customer expectations.

Hence, buying insurance online offers greater transparency and access to information.

Renewal benefits

Renewing your bike insurance is an essential task to continue to avail of the benefits of insurance coverage. However, it can be a hassle to do it through a dealership. The process may entail physically visiting the dealership, filling out paperwork, and waiting to complete the renewal process. It can be both time-consuming and inconvenient, especially for individuals with busy schedules.

Compared to this, renewing bike insurance online has several advantages, making it more attractive.

  • Renewing an insurance policy online requires minimal documentation, and one need not worry about gathering a lot of paperwork. This is especially convenient if one has a busy schedule and doesn’t have time to visit a dealership.
  • As compared to showroom bike insurance, many online insurance providers offer discounts and other benefits. They also offer loyalty rewards that can result in lower insurance premiums.

Overall, renewing bike insurance online is a hassle-free and convenient process that offers financial benefits. It saves time, effort, and money, making it a more attractive option compared to renewing it through a dealership. But remember to renew it on time to enjoy the benefits of your bike insurance policy and have complete peace of mind.

Claim Settlement

Claim settlement is an integral part of an insurance policy and an essential factor that one should not overlook. It helps understand how efficiently the insurance provider will compensate the insured in the event of any unfortunate situation. The claim settlement process can significantly differ between online and offline insurance purchases. This can significantly impact a policyholder’s experience. Buying bike insurance online has become increasingly popular as it eliminates the hurdles faced during claim settlements.

  • Heavy documentation and coordination problems can cause inconvenience and delays during the offline insurance claim process. It does provide the advantage of directly contacting your insurance provider and discussing and understanding the terms and conditions of the claim settlement process.
  • The online claim settlement process is quick and efficient.
  • Instant claim settlements, cashless claims, and seamless coordination are important features of online claim settlement.

Thus, online bike insurance claim settlement is a simple and efficient process that saves the time and money of policyholders. It is no surprise that more and more individuals are purchasing, renewing, and settling their bike insurance claims online. With its convenience, speed, and efficiency, online claim settlement is undeniably an important factor to consider when purchasing a bike insurance policy.

Benefit of Buying Bike Insurance Online

From the above discussion, we can easily conclude that buying bike insurance online is far more beneficial than purchasing showroom bike insurance. The benefits of buying bike insurance online are listed below:

  • Compared to going to the dealer, purchasing bike insurance online and renewing it on time saves significant time and effort.
  • Online bike insurance is also cost-effective, as one can take advantage of various discounts and offers.
  • The online bike insurance purchase process is also far more transparent as compared to showroom bike insurance, as one can check the reviews and feedback of existing customers.
  • The online claim settlement process is also efficient and swifter, making it easy to file claims and keep track of their status.
  • The online renewal process is also easy and gets done with a few clicks.
  • Dealers provide “bundled” bike insurance policies. Purchasing it online allows customers to choose a policy that best meets their requirements.
  • As no intermediaries are involved when you make a purchase online, you are free to filter features according to your needs. This eliminates the possibility of the preference of any insurance agent. Hence, you are in a position to make a selection based on the policy’s features rather than the opinion or recommendation of an individual.

To sum up, buying bike insurance online offers numerous benefits, such as cost-effectiveness, transparency, convenience, and faster claim settlement. It is indeed a more convenient and financially rewarding way of purchasing a bike insurance policy as compared to purchasing it from dealers.

  • bike insurance
  • two-wheeler insurance
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