Why is American Express car insurance via Tata AIG significantly cheaper than anyone else, even Tata AIG's own

[yashendra2797]

My father's car insurance is up for renewal. He was previously on ICICI Lombard, and since I was visiting him, I convinced him to shop around. The best premium offered so far was by Axis Bank (which uses Tata AIG), which was INR 33,877, cheaper than what Tata AIG showed on their website. Policybazaar for ICICI Lombard was similarly priced. Meanwhile I also reached out to AmEx. Seems like they are offering the exact same insurance for INR 20,711, with a slightly higher IDV (10L instead of 9.8)

Plans seem to be the same (Sapphire++ choice1), and all coverages such as Zero Depreciation and Return to Invoice are included. What am I missing? How is AmEx cheaper? Could the actuaries be valuing AmEx clients as somehow more reliable/cautious?

The make model, everything in both quotes is the same.

Here's the policy from Tata/Axis's own website (IDV 9,84,130):


Here's what AmEx is offering us (10L):

 

[Zacobite]

My father's car insurance is up for renewal. He was previously on ICICI Lombard, and since I was visiting him, I convinced him to shop around. The best premium offered so far was by Axis Bank (which uses Tata AIG), which was INR 33,877, cheaper than what Tata AIG showed on their website. Policybazaar for ICICI Lombard was similarly priced. Meanwhile I also reached out to AmEx. Seems like they are offering the exact same insurance for INR 20,711, with a slightly higher IDV (10L instead of 9.8)

Plans seem to be the same (Sapphire++ choice1), and all coverages such as Zero Depreciation and Return to Invoice are included. What am I missing? How is AmEx cheaper? Could the actuaries be valuing AmEx clients as somehow more reliable/cautious?

The make model, everything in both quotes is the same.

Here's the policy from Tata/Axis's own website (IDV 9,84,130):


Here's what AmEx is offering us (10L):

Own Damage is the difference.. amex is reliable.. double check the amount though.. the tata one is inflated
.amex one is more real.. 10L ~ 6k.. my premium is 23k for 13L idv

 

[yashendra2797]

Own Damage is the difference.. amex is reliable.. double check the amount though.. the tata one is inflated
.amex one is more real.. 10L ~ 6k.. my premium is 23k for 13L idv

Both ICICI and Tata on their own are offering 30K+ premiums. Is your 23k premium inclusive of NCB? Because my father made a claim last year.

 

[financewizard]

Check the OD tenure. Some insurance companies offer 3-year OD and 1-year B2B insurance. So I assume that the one from Tata has 3 yr OD and with Amex you are getting 1 year OD. Download the entire policy proposal and check for fine prints. Technically Amex charges a commission for selling you this insurance. Hence this must be marginally more costly than a direct one (notice how the Add-ons are slightly inflated on the Amex quote). However Amex will support you on claims and as Amex Customer service is good, you will have some peace of mind.
Just call both customer care and re-confirm the quote.

 

[Zacobite]

Both ICICI and Tata on their own are offering 30K+ premiums. Is your 23k premium inclusive of NCB? Because my father made a claim last year.

yes.. with ncb

Both ICICI and Tata on their own are offering 30K+ premiums. Is your 23k premium inclusive of NCB? Because my father made a claim last year.

yes.. incl ncb

 

[Namans]

Could you share the entire proposal with personal details blacked out?

I'm was an actuarial student myself so maybe I can help

But yes, no group is so reliable as to get such a huge price difference

 

[Rag]

clearly OD tenure is making difference here. 6k vs 17k .. mostly 1 year vs 3 years

 

[Zacobite]

Could you share the entire proposal with personal details blacked out?

I'm was an actuarial student myself so maybe I can help

But yes, no group is so reliable as to get such a huge price difference

OD for 3 yrs is usually accompanied by all other components also for 3 yrs... everything else is 1 yr
.so OD has to. be rechecked

 

[Namans]

clearly OD tenure is making difference here. 6k vs 17k .. mostly 1 year vs 3 years

A single policy with 1 year cover for add on and 3rd party whereas 3 years for basic OD, that's highly unlikely.

OD for 3 yrs is usually accompanied by all other components also for 3 yrs... everything else is 1 yr
.so OD has to. be rechecked

Yes, the proposal needs to be reviewed

 

[yashendra2797]

Hey guys all insurance quotes are for 1yr OD only. He has 3 years of TP insurance with ICICI Lombard, expiring May 2025.

Both Tata quotes mention 1 year policy duration, and ICICI Lombard also mentions 1 year.

I will post the quotes here in the coming hour

 

[yashendra2797]

Here are the 3 quotes with personal info redacted.

I am a naturally suspicious person so please let me know how I'm getting screwed here by AmEx lmao

 

[Zacobite]

Here are the 3 quotes with personal info redacted.

I am a naturally suspicious person so please let me know how I'm getting screwed here by AmEx lmao

so go for it... amex is the right one..

 

[financewizard]

Call Amex & TATA AIG and confirm the rates. There are instances in the past where third party insurance portals did nit update the rate and there was issue with policy (policybazar).
So call with amex and Tata Aig and check. Also get mail confirmation from Amex that ghe quote is correct. Else it will become a problem later point in time. They might say things like - IDV was incorrect etc

And what Amex card are you having? 🙃

 

[financewizard]

Here are the 3 quotes with personal info redacted.

I am a naturally suspicious person so please let me know how I'm getting screwed here by AmEx lmao

When I try to purchase insurance from Amex (tata aig) by giving similar details - car purchase year 2022, IDV 9L - 10L, NCB as zero, I can see OD cover to be 13k+ - 15k+.

From where are you getting 6k for OD? Is it some offer tagged to your credit card?

 

[yashendra2797]

Call Amex & TATA AIG and confirm the rates. There are instances in the past where third party insurance portals did nit update the rate and there was issue with policy (policybazar).
So call with amex and Tata Aig and check. Also get mail confirmation from Amex that ghe quote is correct. Else it will become a problem later point in time. They might say things like - IDV was incorrect etc

And what Amex card are you having? 🙃

These quotes were from AmEx/Tata Call center. In fact the final quote, marked as #03 was the one attached with the payment link. I am holding 3 cards, Plat Charge, Plat Travel, and MRCC. This quote was initiated through a callback by my father who holds is a Plat Charge supplementary member. As per AmEx policy mentioned on their website, AmEx insurance quotes are available to primary cardholder and immediate family.

I genuinely think this has to be an actuary based offer on my profile. They did use my father's PAN, but main Plat Charge card is in my name. My CIBIL is 750+, and his is in the shitters (he was assigned an SBI CC without his will in early 2000s and told them to cancel. They didn't and the joining fee+tax went into collections. I've asked him to pay the small amount now held by some Kotak bank entity or contest CIBIL but he doesn't care)

 

[financewizard]

These quotes were from AmEx/Tata Call center. In fact the final quote, marked as #03 was the one attached with the payment link. I am holding 3 cards, Plat Charge, Plat Travel, and MRCC. This quote was initiated through a callback by my father who holds is a Plat Charge supplementary member. As per AmEx policy mentioned on their website, AmEx insurance quotes are available to primary cardholder and immediate family.

I genuinely think this has to be an actuary based offer on my profile. They did use my father's PAN, but main Plat Charge card is in my name. My CIBIL is 750+, and his is in the shitters (he was assigned an SBI CC without his will in early 2000s and told them to cancel. They didn't and the joining fee+tax went into collections. I've asked him to pay the small amount now held by some Kotak bank entity or contest CIBIL but he doesn't care)

Then it makes sense. You can go with Amex. Thanks for being this to this forum. Now I know a way to get vehicle insurance at better price.. Let me also try to follow this method.

So you directly called AMEX and asked for insurance quote is it?? Please elaborate the actual step that you followed with Amex.