Should You Buy Insurance from Car Dealerships

When you need a new automobile you will go to a dealer to choose one. You will listen to his/her advice carefully, and maybe ask questions further. They know about cars, their value and they have a few in store to look at. They can also price your old auto and take it in as a part exchange. Overall, you can go with an vehicle and return home with a new one.

Some dealers will have facilities to sell you auto insurance as well. Some can arrange a starter coverage that will enable you to take it home. These covers are temporary and you need to arrange a proper one shortly. Alternatively, you could buy coverage from the dealership and be done with it. This is their sales pitch anyway and you shouldn’t fall for it.

where to buy auto insuranceYou should fall for the first policy offered to you. There are many companies and you should get a few quotes and compare them with each other. You can either do this online by yourself or get a broker to do it for you. They will definitely do a good job compared to dealer. Many people don’t want to buy cars from them and it would be odd if you want to buy insurance as well from your car salesman.

An independent broker would first take all the necessary information from you. This makes sure that he/she is looking for coverage based on your requirements. This can change the type of coverage and premium a lot. Understanding what you need is an essential part of arranging coverage.

Then, they would go to market to buy auto insurance for you. They would ask quotations from many companies they work with leaving no stone unturned before they lay their findings in front of you. At least this is how a professional broker works and this is what you would expect from yours. Is this any of the things that would be done by your dealer? Hopefully, it is clear why you would have so many advantages with going with a professional intermediary and problems with any other source.

Auto salesmen can arrange you a loan as well as insurance. When they arrange loan they may be keener to arrange insurance as well. The selling point would be that your loan cannot be arranged unless there is a proper policy insuring the underlying asset, the vehicle. That is why they would be able to sell loans quicker if they can sell insurance as well.

When you get an auto loan you will need to arrange GAP insurance as well. The moment you take it out of the dealership, your auto can lose large chunk of its value. But the insurer would only pay you its market value in the second hand market even you bought it only days ago. Gap insurance pays the difference in between the outstanding debt and the market value of the automobile.

These all can be arranged better if you allow a little time for yourself. Many people get keen to take the car home and rush on buying policies and even getting loans. As a result they pay more than what they should.