December 1983, the first small car for the masses hit the roads of India and became an instant success. What Maruti sold to the masses was not just a car, it was a dream. It was an aspiration. The car became a symbol of success, something of which the entire family could be proud. People worked hard, saved their hard earned money, and even availed of a car loan to purchase their dream car. Which is why, after a car is purchased, one must also ensure that it is adequately protected. While one cannot control the rash drivers on the road and foresee natural disasters that might damage the car, what one can do is take an adequate insurance cover that can pay for any expenses that arise in the aftermath of any such incidents.
A motor insurance policy can cover the vehicle owner against financial losses stemming from the damage or theft of the motor vehicle. In India, as per the Motor Vehicles Act of 1988, it is mandatory for all vehicle owners to purchase third-party motor insurance. Such a policy will protect the owner against financial liability in case of third-party loss, damage to property, or any third-party death or bodily injury caused by the owned motor vehicle. While this is a basic and mandatory insurance policy, it is always better to opt for a comprehensive motor insurance policy which will cover damages to own and third-party vehicle both. Such a policy will cover financial losses to the car that stem from all man-made and natural disasters, including but not limited to theft, accidents, terrorist attacks, cyclones, earthquakes, etc. Why it is important to purchase Motor Insurance?
Agreed that third-party insurance is mandated by law. However, adherence to law should not be the only reason for opting for a motor insurance policy. A comprehensive car insurance policy can benefit you in several ways:
It will offer coverage in case of damage to the car stemming from man-made or natural calamities.
It will offer coverage in case of theft.
In the case of accidents that cause damage to the car, it will cover the bills for repairs.
It will offer coverage against potential lawsuits, including the legal fees, in case of legal proceedings following an accident.
It will offer financial benefits to survivors in case the accident causes fatal injuries.
A comprehensive car insurance policy will also allow the owner to extend coverage to other people driving the car with permission, thus protecting the owner even when he/she is not behind the wheel.
The best is that in case one does not raise any claims at the end of the policy or tenure, then he/she will be eligible for a no claim bonus on renewals, as long as certain predetermined terms and conditions are met. All great reasons to purchase a car insurance policy.
However, have you ever wondered when people purchase a car insurance policy?
Is it when they are dining out with their family? Or is it when they are going on a family vacation? Or, is it when they are at the mall, shopping for the family?
The short answer to these questions is, ‘None of the Above’.
Embedding Insurance in the Motor Purchase Journey
Most people buy a car insurance policy at the time they are purchasing the motor vehicle. Thus, if you own a car showroom or a website that sells new or used cars, then you definitely should be able to offer your clients more than just basic third-party insurance. Customers today gravitate towards product or service providers that can give them a holistic and seamless experience. Where their needs and requirements are almost intuitively taken care of without them having to go through additional paperwork. Buying a car is an important decision. When people buy a car, they also bargain for additional perks like seat covers, longer service contracts, etc. Now, imagine giving them something extra like a comprehensive motor insurance policy at the point of sale itself. Wouldn’t that enhance your value proposition?
Let’s put you in the shoes of the customer. There is website ‘A’ that has a good variety of cars, provides decent discounts, and often throws in a few freebies into the final package. This website offers comprehensive car insurance as well but only from a single insurance provider. On the other hand, there is website ‘Z’ that offers all of the above along with an option to purchase a comprehensive car insurance policy that you can choose from multiple insurance providers. It enables you to compare the cost and coverage offered by different motor insurance providers so that you can choose the motor insurance policy that suits your unique requirements. The best part is that the paperwork required to purchase the policy is minimal and the policy is embedded in your contract. Which dealer would you prefer working with? Most likely website ‘Z’.
Thus, if you really want to offer your customers a distinct value proposition, then you must consider embedding motor insurance in your core offering. When you embed motor insurance in your core value proposition, the customers will view you as a vendor that offers end-to-end value in a seamless and efficient manner. The good thing is that embedding insurance in your core offering has never been easier.
Turtlefin - Your Embedded Insurance Partner
As a Turtlefin customer, there is no need for you to invest in the technology infrastructure required to embed insurance. Turtlefin provides the necessary infrastructure for offering insurance to your clients in a seamless plug-and-play manner through simple APIs. The Turtlefin OneAPI can help you enhance your overall value proposition by enabling you to offer insurance as a valuable add-on to your core product. Turtlefin will handhold you through the integration process and enable you to offer your customers insurance policies from multiple insurers. Further, this is not a one-time interaction. Turtlefin will also provide you and your team regular support to make the entire integration process seamless and efficient.
Now, why choose to only sell cars when you can sell both cars and insurance. Please reach out to us to learn more about how we can help you enhance your offerings.