Why you should not buy insurance at vehicle dealerships
It’s well known that vehicle dealerships today often provide end-to-end financing and insurance solutions. It does not take a genius to figure out why – they simply want to make sure you walk out of their showroom with a vehicle as quickly and easily as possible, before you have the chance to change your mind. And also making that extra buck off you while there is a chance.
But what is in it for them, you ask?
Before we get into that, we need you to remember: Motor insurance is compulsory, but it is not compulsory to buy motor insurance from your dealership.
Now, vehicle dealerships provide such insurance services are often provided through tie-ups with insurance companies or in some case insurance brokers owned by vehicle manufacturers!
They get paid a certain % commission on every policy they sell, given that this sort of a sales relationship with an insurance company can only arise out of as an ‘Agent’ or a ‘Point of Sale Person (PoSP)’.
But what’s wrong with this, you ask?
While you stand there in the dealership showroom, proud and admiring your choice of car or bike, you’re often less careful with splurging on ‘accessories’ and ‘add-ons’ presented to you by the salesmen, because why not?
Why wouldn’t you agree to spend a few thousands more after the few lakhs you’ve just decided to spend?
Why would you take the effort to approach a different insurance company or a broker to get a better quote? Motor insurance is legally mandatory! Let’s just get done with it quickly!
This is what dealerships tend to exploit. They present to you their insurance quote, often with an ‘n’ number of unnecessary add-on covers which lead to an exorbitant premium, and while you stand there enticed by the good looks of your car in the showroom’s excellent lighting, you quickly sign the proposal form, agreeing to make your wallet lighter, without as much as a second look at the disorienting names of the add-ons and the policy terms and conditions.
Can’t get much worse than this, can it?
Oh yes, it can. Ask them what each of those add-on covers mean, and it’s unlikely they’ll be able to explain it to you in an honest manner.
Say you’re not as carefree with your money as the ‘average customer’, and decide to find cheaper insurance. You’re immediately accosted with the possibility of less than acceptable vehicle servicing experience because you didn’t buy said insurance from the dealership. But don’t let this devious tactic stop you from seeking the right insurance coverage. https://tenor.com/view/the-incredibles-bob-parr-insurance-is-key-insurance-the-incredibles2-gif-19543486
In 2023, getting your new vehicle insured is not difficult, but it can be easier still. As a customer in a free market, you have the power of choice.
For professional and trustworthy advice on motor insurance cover for your vehicle, CHOOSE to reach out to insurancepe!
This blog post is brought to you by the minds at insurancepe!
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