There’s nothing more exciting than finding your perfect vehicle. But if you don’t have car insurance, you’ll come up against some serious roadblocks. You may be tempted to kill two birds with one stone and purpose insurance through the dealership. However, have you ever thought that there might be better options out there in the market?
After many years of penny-pinching and thinking twice before spending even a dollar on anything, David managed to save enough and buy a car. As he approached the car dealer, he was waylaid with auto insurance talk. David listened to the dealer carefully and concluded that he indeed needed auto insurance. He hadn’t thought of it before when he was planning the purchase. After talking it over with his wife, he approached the car dealer and asked him to explain the coverage he was offering. When David relayed all the information back to his wife, she was a bit skeptical. She told him to do his own research and find out how much auto insurance costs and what benefits are offered in the coverage. Turns out — the car dealer was offering a steep price for the policy as compared to what was being offered online!
Is Buying Auto Insurance from a Car Dealer a Good Choice?
We agree that buying auto insurance from a car dealer is an easy way out. All you need to do is agree with the car dealer, sign the contract and pay the price.
And now comes the downside — it may seem convenient at first but soon after, you will feel the brunt of the following problems:
What you are forgetting in this whole scenario is that a car dealer sells cars! So, when it comes to offering an auto insurance policy, you will find out that the car dealer does not have many options. Since most car dealers join hands with a maximum of three insurance companies, they won’t be able to offer you the type of coverage that you are looking for.
Premiums Are Higher
When car dealers enter into a deal with insurance companies, they take over certain aspects of the insurance policy. They might dictate how much servicing your car needs and whether the claim you made should be approved or not. At a set price, the car dealer takes on these responsibilities and as a result, the total payment of the policy that the car dealer has to pay is around 40% of the actual cost. This is why the car dealer charges you a high premium and the price of the policy increases.
Add-Ons May Not Be What You Want
Depending on how often a person drives their car, they might want different types of add-ons. As you know, car dealers receive a commission based on how many clients they bring in. The more add-ons they will sell, the more money they will get on their next salary. As a result, you are forced to buy unnecessary add-ons that cost more. On top of that, you don’t get any discounts.
Buying Car Insurance Online vs. from a Dealer
What makes buying an auto insurance policy online so appealing? You can do as much research as you want, read reviews and purchase the policy in a few seconds. If you compare the price of the policy offered by a car dealer to the one that is available online, you will find out that the former is 40% more affordable.
There’s no commission fee, administration fee, paperwork, etc. Customers can simply pick a policy and then consult with the insurance agent about what coverage they should include in their plan.
Another major benefit of buying an auto insurance policy online is that there are plenty of choices available. You can check out all the policies, compare rates and then customize the coverage according to your needs and budget. Now, if you are looking at add-ons for your policy, you can do so without being pushed to buy certain coverage options. You can change your policy whenever you feel that the current plan is not enough or too much. Your changing lifestyle will tell you which coverage options you need to let go and which ones you need to add to your plan.
Finding the Right Auto Insurance Policy
You need to follow a couple of steps when you are buying an auto insurance policy. First, look at different riders and ask about the types of policies they offer. Second, compare rates and the monthly premium charges. Third, decide about add-ons and their cost. And lastly, read reviews about the company before making your decision. Following are a few add-ons that are offered with an auto insurance policy:
Nil or Zero Depreciation: This coverage option offers you complete coverage without depreciation, which includes parts such as glass, rubber, fiber and plastic.
Engine Protection Cover: This coverage option offers protection against any damage that might cause the car’s engine to malfunction such as hydrostatic lock.
No Claim Bonus Cover: This coverage option offers you the benefit of keeping your no claim bonus intact after the policy is renewed. The fact that you have made a claim does not affect this add-on.
Roadside Assistance Cover: This coverage option offers assistance when you are stranded on the side of the road. It offers benefits such as roadside repairs, flat tire repairs, towing facility and emergency fuel refilling.
Return to Invoice: In case your car is stolen or lost, this add-on will offer the original invoice value of your car — not the IDV.
The bottom line is that when you are buying auto insurance, you need to look at numerous factors, one of which is the premium. Don’t look at how many add-ons you can include in the policy! Buy only the ones that will offer you protection based on your lifestyle.
If you are looking for a qualified insurance agent who holds years of experience in this field, then visit Pawson. The company provides different types of car insurance policies with additional coverage as well. To know more about their policies, contact them at 203-481-8898.
Digital Marketing Director