When you’re shopping for a new vehicle, one of the many decisions you have to make is whether to purchase dealer insurance or purchase insurance independently. While this may seem like a convenient option, you don’t need to buy insurance from a dealer, and there are a number of reasons why you may want to explore other options. In this article, we’ll explore the pros and cons of buying insurance from a dealership and provide some tips for buying insurance independently.
Advantages of buying insurance from a dealer
- Convenience – Purchasing insurance from a dealer can be a convenient option, as you can often take care of all your vehicle-related needs in one place.
- Easy to finance – If you are financing your vehicle through your dealer, they may offer to factor the cost of insurance into your monthly payments, making budgeting easier.
- Additional Coverage Options – Dealers may offer additional coverage options, such as an extended warranty or gap insurance, that you may not be able to find through an independent insurance provider.
Cons of Buying Insurance From a Dealer
- More Expensive – Buying insurance from a dealer can often be more expensive than buying insurance independently, as the dealer typically increases the cost of insurance.
- Limited Options – When purchasing insurance from a dealer, you will be limited to the insurance providers they work with, which may not be the best fit for your individual needs.
- Pressure to Buy – Dealers may pressure you to purchase additional coverage options, such as extended warranties, that you may not necessarily need.
Tips for buying insurance independently
- Compare Quotes – One of the most important things you can do when shopping for insurance is to compare quotes from multiple providers. This will give you an idea of the different coverage options available and help you find the best deal for your needs.
- Consider Your Coverage Needs – When shopping for insurance, it’s important to consider your coverage needs. Be sure to consider factors such as your driving record, the type of vehicle you own, and how much coverage you need to feel adequately protected.
- Research Insurance Providers – Before committing to an insurance provider, be sure to do your research. Research reviews and ratings of different providers to get an idea of their customer service claims handling and overall reputation.
- Take advantage of discounts: Many insurance providers offer discounts for things like safe driving, multiple vehicles, and combined car and home insurance. Be sure to ask about any available discounts to help lower your insurance costs.
While buying insurance from a dealer may seem like a convenient option, it’s not necessary, and there are a number of reasons why you might want to buy insurance independently. By comparing quotes, considering your coverage needs, and researching insurers, you can find the best coverage at a competitive price. Remember to only buy the coverage that makes sense for your individual circumstances, and don’t be pressured to buy additional coverage options you don’t need.