Never Buy Car Insurance From Your Car Dealer - Explained

Posted by Awnic on December 15th, 2020

Generally most of the people who buy a car also decide to take car insurance from the dealer. However, if you take a furtive glance at the online plans you will find that the offers available there are even much better. Not only this, there are some more reasons that show why it is not a good call to buy car insurance from a car dealer. Have a look at them below -

Less Alternatives

The main aim of a dealer is to sell vehicles - not insurance. Therefore the broker would not be willing to give that many options to the customer when it comes to insurance. If the dealer has a tie-up with two or three insurance providers, then those entities would be able to sell policies to the dealer. It would not include alternatives outside their programmes, thereby limiting clients to the form of policies that they will use.

Costly Premiums

In general, auto dealers enter into tie-ups and contracts with insurance providers and dictate issues such as operation and claims, aside from rates, and premiums can pay more. This in essence, in the form of separate costs, are carried on to the car dealers. The total payment that an insurance company can receive from a dealer can go as high as forty to forty five percent . This would have an impact on the price of the policy, and this will translate into high premiums for clients. Therefore, it is always a wise decision to go with a reputed car insurance company like AWNIC rather than a dealer.

Not So Good Add-Ons

Car insurance complements must be selected in compliance with the car and owners' particular specifications. The type of add-ons on policies sold by dealers was found to not generally adhere to the use or specifications of the vehicle owner. When dealers operate on the basis of commissions, they can be inclined to drive the add-ons to produce the highest profits. In comparison, the additions cost a little more on the higher side, as incentives for the car buyers have been reduced.

Thus, it is a wise decision to  buy car insurance online rather than from a car dealer as you will get more options, better deals and of course great service.