Is It Mandatory to Buy Car Insurance from Your Auto Dealer?

by kumar rahul Best Insurance Deals

The answer is a big NO.

Aside from the common idea that you can only acquire car insurance from your auto dealer, it is also a myth that it is mandatory to go for it. Most people prefer it because it is less time-consuming to purchase because you do not have to research and evaluate the various insurance options accessible.Your auto dealer serves as a vital link between you and the insurance company. They also provide seemingly unimportant things such as auto covers, free services, and so on.

But hold on! There's a catch.

Your car dealer may take care of everything for you, but it will cost you money. Because your auto dealer arranges all of your car insurance needs from the ground up, your rate will immediately rise.

In comparison, if you can spare some time to look over the features of each car insurance policy, ideally online, you will almost certainly find a better offer.

Not only that, but you'll have the freedom to select the add-ons that are most useful to you. That is, of course, preferable than having to take the ones you don't need but still have to pay the premium for.

Let's look at the benefits and drawbacks of buying car insurance from your auto dealer:

Advantages

It does not necessitate the car owner's active participation in the transaction. Everything is done on your behalf, from browsing for vehicle insurance plans to understanding the features and benefits they provide to making an informed decision. Is there anything more convenient than this?

· Bundling discounts are frequently available when you buy a car and an insurance policy from the same auto dealer.

· The support is not limited to the purchase procedure; it also extends to after the sale. If the necessity arises, your motor dealer may also be able to assist you with claim settlement.

· You can contact the automobile dealer for further information on the coverage or to file a claim. In such cases, the dealer may be able to assist you effectively.

Drawbacks

· An auto dealer will not be able to provide you with as many car insurance plan selections as you would otherwise. Every auto dealer has a partnership with a few insurers, and customers who buy automobiles from their showroom can choose from a variety of vehicle insurance options.As a result, the auto insurance coverage accessible to car buyers is limited to these insurance firms solely. This reduces the number of insurance firms and policies available to car buyers. Hence, while you won't have to deal with the trouble of getting auto insurance, you'll miss out on the huge selection of insurance options available.

· When you buy car insurance through your auto dealer, premiums are higher, often by as much as 40% higher than online car insurance premium rates. The increase in charges is due to the commission paid by the insurer to your auto dealer for making the vehicle insurance plan easily accessible to you. This has an impact on the cost of your coverage, resulting in increased premiums.

· Your auto dealer's add-ons may not be appropriate for your specific needs. However, you have no choice but to pay a premium for each of the add-ons, which is in addition to the basic comprehensive plan's cost. When you buy vehicle insurance online straight from an insurance broker or insurer, on the other hand, you have the option to choose the add-ons you desire. Furthermore, you have the option of not purchasing any add-ons.

To sum it up

Purchasing automobile insurance through your car dealer or straight from an insurance company has benefits and drawbacks. You can weigh the advantages and disadvantages of both solutions and choose the one that best matches your needs.