Are you a bargain hunter who typically argues for a better price, be it with the vegetable vendor or at an upmarket boutique? It would do well to look for similar discounts while buying or renewing your insurance policy. This does not mean that you have to squabble over the return on the commission that the agent earns while selling such a product. There are better ways to save and all it takes is for you to shop for a good price.
Bargain Calls |
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| While buying insurance directly from the insurer, do not go by the rack rate. You can push for a 15-20% reduction in the price. |
| Approach various brokers to get a quote on the price that they can offer you. Compare the plan that costs you the least without compromising on the value and quality of the cover. |
| Check online for the bargains that various intermediaries are offering. These are lead providers and most often have special rates. |
Though much has changed after detariffing, and pricing has become elastic, the entry of each new player heralds the arrival of a slew of discounts by insurers who want to garner a bigger share of the insurance market. Travel and motor insurance are the two areas where you can haggle for the best premium rates. This is primarily because motor insurance is a mandated policy, which makes it compulsory for all vehicle owners to have one, while travel insurance is a commoditised product with little scope for value addition in the plain vanilla cover. So, insurance agents find it easier to woo customers if they can either match the premium offered by their competitors or provide a lower one.
How can you be sure that the agent is quoting correct figures for other insurance companies and not inflating them? This is where insurance portals come in handy. They help you compare plans across several insurance companies. They act as online brokers and help you access and assess deals offered by various insurers on their Websites across product categories. This can help you gets rid of the middleman, the agent who has a vested interest in selling you a policy, and also enable you to find the lowest premium.
Most brokers provide information about various insurance policies on their Websites, but they do not offer online sales. Some of the players who do so include insurancemall.in, getmeinsurance.com and click2insure.com. You can also buy a general insurance policy directly from a company through the Net. This is because unlike life insurance, the structure of general insurance products allows them to be sold and bought online. Moreover, in a detariffed regime, insurance companies can fix their own pricing, making online selfbuying channel a reality for many who do not like to be hounded by pesky insurance agents.
Buyers should keep in mind that these online insurance portals are only gateways. The actual policy comes from the insurance company and not from the intermediary (broker) who sells it, whether online or offline. They should also make sure that in a frenzy to get the best possible rate and discount on the insurance policy, they should not compromise on the extent of the cover. That would defeat the purpose of the insurance.
