If you are looking to buy a new car, be sure to read about the various auto insurance policies on the market. But if the dealer makes it easy to buy a policy by bundling the insurance with the sale of the car, you would be really tempted to buy it yourself at the dealer. However, before making a hasty decision in this regard, you should weigh the pros and cons of purchasing insurance with a dealer.
Disadvantages of purchasing insurance from a car dealer:
Some automakers register with an insurance broker and dictate things like claims and maintenance. Others negotiate directly with the insurance company. In general, because merchants often make a lot of money selling insurance.
You should be aware that purchasing insurance with a dealer has its own disadvantages:
- The dealer will have connections with certain insurance companies. The client can only purchase the insurance solutions offered by these companies. However, the nature of buying insurance online will help clients choose from a wide variety of insurance companies that offer comprehensive coverage.
- The dealer may not offer the best price on insurance. While this purchase will save customers a lot of time, it may not actually save them money. Car dealers work with insurers on commission. Therefore, the client may be asked to pay higher premiums than they would pay if the insurance were purchased in another way.
- Dealers can include supplemental or voluntary insurance as part of their auto insurance without specifically stating it. You should be vigilant and read the insurance coverage carefully before signing on the dotted line. In the event that your policy has a high voluntary deductible value, you will have to pay a large portion of the claim amount. Additional coverage that is not helpful to you only increases the premium you pay without any additional benefits.