Have you finally saved enough money to buy your own vehicle? Congratulations! Of course, at this point, you might want to rush through the remaining procedures quickly, including car insurance. Many car dealers combine insurance with car costs, and while the process is undoubtedly faster, hassle-free, and more streamlined when done through a dealership, there are some significant drawbacks, too.
If you think signing the papers and paying whatever the dealer says is the easy option, it’s time to reconsider your decision. Let’s take a quick look at five compelling reasons why you should never buy insurance from your car dealer:
You Cannot Compare Plans
Thanks to the internet, you can easily compare car insurance prices online. You can research for one that aligns with your requirements and select the coverage you need. Many insurance comparison sites allow you to filter through the best-priced policies after comparing quotes.
However, when you buy insurance directly from the dealer, you lose the option to compare policies. Besides, you must remember that the dealer sells cars, not insurance. Car dealers have connections with insurance companies, so buyers only get limited access to choices. This leaves no chance to compare plans that may be better suited to your needs and budget. If you go ahead with what the dealer offers, you may miss out on the perfect coverage for you.
Lack of Flexibility
Since most car dealers have a tie-up with insurance companies, they are very rigid regarding coverage. You may not end up with the insurers and the add-ons you want. In fact, you may end up with add-ons that are unnecessary or result in a higher premium. Since the plans are generally pre-designed, customers have little say in the matter. Ultimately, most customers will only have to go along with the prearranged deal if they fall into the trap of getting insurance policies for vehicles sold through the dealership.
Fixed Coverage
You cannot choose the inclusions you want in your coverage due to a lack of flexibility and inability to compare prices. Generally, car dealers offer a fixed coverage for four-wheeler insurance policies. So, for instance, the dealer can provide a comprehensive plan with additional features when you might only need a simple plan. As a result, you will have to pay higher premiums for coverage you don’t need. Or the coverage provided might not have the inclusions you are looking for, which is another massive disadvantage.
Specific Add-Ons
The main objective of getting car insurance is to have the ideal coverage. When you don’t get this, it defeats the entire purpose of buying insurance in the first place. When you end up with a fixed and predetermined coverage, it also means a selected range of add-ons. This can be unnecessary or insufficient, resulting in a lack of appropriate coverage. In either case, the buyer is disadvantaged because they pay more than needed or get less coverage.
You Miss Out On Digital-First Insurance
When you purchase car insurance online, you get to compare prices and coverage and gather a more robust understanding of the different terms and conditions of an insurance plan. There are many benefits of buying your car insurance online with digital-first insurers that you wouldn’t get to enjoy if you go ahead with the insurance offered by the dealer. These include:
- Being able to compare policies and choose the coverage of choice
- Coming to an independent decision without being influenced by any third-party
- Better-priced policies with no compromise on coverage
- Convenient claim settlement
- Quick policy purchases
- Better service quotient
- No paperwork involved
Conclusion
We understand you may have invested all your savings into buying your new car. But remember that nothing in life is secure. We are all susceptible to accidents, thefts, damages due to natural hazards, etc., which puts your car under constant risk. Therefore, purchasing car insurance is the only way to protect yourself from the potential financial consequences of unforeseen incidents.
How you secure your vehicle should be your choice – not something your car dealer should force on you. So, be sure to take all the time you need before making an informed decision backed by research, not convenience.
