There is no doubt about the fact that
the whole process of insurance buying is smooth, more convenient and hassle-free
when it is done through the car dealer. All that you have to do is one – say
yes, two – sign the papers and three – pay whatever premium the dealer asks you
to pay. Even though the procedure may appear cool and sleek, there is, however,
a huge negative aspect to this. The possible problems that you could face if
you choose to buy car insurance via the dealership route are mentioned below.
Premiums
Could Be Costlier: Frankly speaking, car dealers get into tie-ups with the
insurers. They enter into arrangements with insurance companies and they represent
aspects like claims and servicing etc, apart from premiums.
These, in turn, get passed on to the
car dealers along with the outline of a range of expenses. The total payment
that a car dealer may receive from an insurer can soar as high as 40%. This
will have an impact on the premium that you are supposed to pay. And for
customers, this can render into high premiums.
Very Few
Options to Choose from: You must keep in mind that a dealer’s main objective is to
sell cars – not insurance. This is the reason why a car dealer will not be able
to provide the policy buyer with too many options for insurance. If the dealer is
associated with two or three insurers, the dealer is only going to be able to provide
policies offered by those companies only. Since it will not offer options
beyond their plans, it will restrict the customers on the type of policies they
can procure.
Offered
Add-ons May Not Fit Your Requirements: When it comes to picking any car
insurance add-ons, you must keep in mind your specific requirements as well as
of the car. It has been observed that the sort car insurance add-ons the
dealers offer do not match the car owner's requirements. Given that the dealers
work on a commission basis, they may be tempted to put those add-ons on the table
that generate them the highest earnings. Also, the cost of add-ons can be
higher since the dealers have limited discounts to offer their car buyers.
So you must keep in mind that you
refrain from buying car insurance from the dealer and make sure that you
compare various car insurance policies online to avail the best deals. If you
want to renew your car policy at the lowest premium with broad coverage and
attractive add-ons, simply click here and grab the best deals.
