How to Buy Car Insurance Without Paying a Commission

How to Buy Car Insurance Without Paying a Commission

Business

When insurance came into existence, the only way that people could buy insurance, was through an agent and this often involved paying a commission. With the availability of technology and the advent of sales through the internet, agents are not the only means to purchase insurance. Read further to understand how to buy car insurance without paying a commission:

Who Are Agents?

In India, one can buy car insurance through various means. One of the oldest and most common methods of buying car insurance is going through an agent. Agents can be classified into two types:

  • Captive Agents – These are agents who work for one specific insurance company. They are responsible to attract more customers to their insurance companies. Though insurance companies have customer care services, captive agents handle most of the needs and queries of the policyholders
  • Independent Agents – These agents sell insurance policies of various insurance companies. They are free to sell any insurance policy to their customers

When Does One Have to Pay a Commission?

Insurance agents sell their policies in return for a commission. While agents can help understand the policy in detail, there is a chance of getting cheated if the customer has not checked their credentials and established that they are dealing with someone trust worthy and with a formal relationship with the insurer. There have been many instances in the past, where agents have not been transparent about what the policy offers, and this has led to a lot of issues due to poor understanding of the policy in the customers’ minds. Certain insurance policies, that cost high premiums might help agents earn high commissions. This factor often leads to agents pushing these policies to customers rather than focusing on the specific needs of the customer.

How to Buy Car Insurance Without Paying Commission?

It is possible to buy car insurance without an insurance agent i.e., by not paying a commission. New age insurance companies provide the opportunity to buy car insurance directly online. Below are some steps to buy car insurance online:

  • After deciding on an insurance company of your choice, it is important to keep all the necessary documents ready. Some important documents are:
    • Vehicle registration number
    • Details such as the make and model of the car
    • Personal details of the policyholder
    • Preferred payment mode and bank details
    • Preferred car insurance policy type
    • Add-on covers
  • Visit the official website of the insurance company
  • Provide all the details required using the documents mentioned above
  • Complete the payment online

Benefits of Buying Car Insurance Online

  • Buying insurance online is easy and hassle-free
  • The processing and distribution costs are eliminated while insurance is sold online. The need for an agent is redundant and thus one would save a lot by not paying a commission for the agent
  • One can research various policies and learn about what is offered on online platforms. Transparency of products makes it convenient for customers to understand what they are going to buy
  • Buying insurance online is very safe and one does not have to worry about being cheating by agents
  • Since everything is available online it is easy to upload documents, make payments and renew the policy with just a few clicks from the comfort of one’s home

One must remember that not all agents are unethical. There are authorised agents that one can buy policies from who would not ask for cash payments. If you want to go through an agent, never give cash and make sure you receive the receipt. If you want to buy car insurance without any hassle, you can always choose to buy insurance online. To know more about buying car insurance online, click here!

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