Most of the automobile dealers are selling their vehicles with insurance. There is hardly any buyer who buys insurance policy directly from the insurance companies and then take delivery of the vehicle. Recently a case has come where the vehicle was sold to a buyer with insurance amount charged. However, when the buyer approached the insurance company after one year for its renewal, he was informed that his vehicle is not insured as the dealer did not pay the insurance premium. While it was a purely fault of the insurance company as well for not informing the buyer about non-release of payment, but the insured should have suffered a lot had the vehicle met an unfortunate even whether accident or theft. Few advises:
1. You can buy directly from the insurance company the insurance policy for the vehicle under purchase. This would also result in saving if you have any No claim bonus arising out from the previous vehicle.
2. There is no term like free insurance in real terms. The dealers are just making fool the public by showing that the insurance premium is free.
3. Even if you are buying vehicle from the dealer with insurance paid, it is in your own interest to confirm the policy from the insurance company of having paid the insurance premium and its genuineness. more