Why you should not buy car insurance through an Auto Dealer

Many people choose to buy car insurance through their auto dealer. This is convenient, as it can be done all in one place. However, there are some pitfalls to be aware of before you buy car insurance from your auto dealer.

Here is why we think it's best to steer clear from buying insurance through auto dealers:

Higher premiums

Auto dealers often charge higher premiums for car insurance than independent insurance companies. This is because auto dealers receive a commission from insurance companies for selling their policies. This commission is typically passed on to the customer in the form of higher premiums.

Limited choice of insurance companies

Auto dealers typically only have partnerships with a limited number of insurance companies. This means that you may not be able to compare quotes from a variety of insurers before you buy car insurance.

Less expertise in car insurance

Auto dealers are not insurance experts. They are in the business of selling cars. As a result, they may not be able to provide you with the best advice on car insurance.

Hidden fees

Auto dealers may also charge hidden fees for car insurance, such as administrative fees or document fees. These fees can add up and make your car insurance policy more expensive than it needs to be.

Here is how to avoid the pitfalls of buying car insurance through auto dealers:

If you are considering buying car insurance from your auto dealer, be sure to compare quotes from a variety of independent insurance companies before you make a decision. You can also get advice from an insurance broker.

Tips for comparing car insurance quotes:

  • Get quotes from at least three different insurance companies.
  • Compare the level of coverage offered by each policy.
  • Ask about any discounts that you may qualify for, such as a good driver's discount or a bundling discount.
  • Read the fine print of each policy carefully before you sign anything.

Conclusion

Buying car insurance through an auto dealer can be convenient, but it is important to be aware of the pitfalls. By comparing quotes and getting advice from an insurance broker, you can avoid paying too much for car insurance.

 


Posted on Dec 05, 2023 by Auto Repair Directory

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