Should You Buy Or Renew Motor Insurance From Car Dealers?

Should You Buy Or Renew Motor Insurance From Car Dealers?

The extras you often receive when purchasing a car are listed below: Free limited number of car services and priority repairs if the car is damaged in a collision. Dealers often offer financing options and auto insurance coverage through partnerships with banks, non-banking financial institutions, and insurers, providing value-added services. While all of these can make buying a car easy for you, you need to be cautious while choosing a motor insurance policy.

Read on to learn more about the various pros and cons of purchasing insurance from a car dealer. All of them are listed below:

  • Convenience: You may purchase both auto and auto insurance in the same location. The effort of looking for an insurance provider is not necessary.
  • Limited Options: Car dealers often provide a small selection of insurance alternatives. Some can even prevent you from comparing plans from various providers. When you buy insurance from a car dealer, you may be unable to get the option to compare and choose from various products. Not all auto dealers offer price and cover comparisons with a variety of insurer options. This restricts the amount of freedom clients must have while purchasing or during motor insurance renewal.
  • Customisation: A car dealer is likely to be familiar with your automobile’s specifics. They can help you find the ideal insurance plans for your car.. Car dealers may offer customised insurance policies that are made for your specific needs, such as zero depreciation cover, engine protection, and roadside assistance. *
  • Lack of transparency: Automobile dealers might not give all the details of their insurance plans. You might overlook the advice that brokers and other middlemen provide while purchasing motor insurance.
  • Increased premiums: Insurance policy commissions are typically expensive for car dealers. Car dealers have a financial incentive to sell you auto insurance, which can lead to a conflict of interest. They might put their financial interests ahead of yours. *

Auto dealers act as insurance intermediaries, but there is no compulsion to buy insurance from them and often no financial benefit.  Instead, exploring other options and comparing prices from reputable insurance advisors is advisable. Researching and consulting insurance professionals can ensure you get the best coverage at the best price, ensuring peace of mind while driving. 

It is vital to research other options, such as insurance agents, brokers, or online platforms, to ensure you receive the ideal coverage, competitive premiums, and unbiased advice. Thorough research and careful consideration of your needs are essential to making an informed decision that provides peace of mind.

A vehicle insurance calculator is a convenient tool you can utilise online to check the coverage required based on your needs.

*     Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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