Why You Should Avoid Purchasing Insurance Through a Dealership
In some states, there is a provision that allows some dealers to provide you with auto insurance at the same time you are purchasing your new car. But buyers should be cautious, as dealerships typically do not offer the best deal no matter how convenient the service may seem.
Buying Car Insurance From a Dealership Can Cost You More
What consumers save in time may cost them more in the long run. Although car dealers may provide you with the luxury of being able to purchase insurance directly through them, you may end up paying substantially more than necessary as it is another way for them to generate income for their bottom line, and they have ways of making money on every single transaction they manage.
Purchasing insurance through a dealership will cost you more than going through a broker or directly to an insurance company because the policy rates may be marked up to provide the dealer with a type of commission. Dealerships are not there to take care of the needs of the customers. Dealerships exist to make money while providing a need to a customer base therefore, profit margins are established in each transaction you make while there.
Dealer Transactions Should Be Treated Separately
Experts recommend instead that you treat every transaction at the dealership separately – negotiating the car price, the financing, and finally the auto insurance. This way, you can always go to different sources in order to find the best combination of deals. No single entity will offer the best rate for every category, so it makes sense that you would comparison shop. Looking online for auto insurance is a good place to start, as you can conveniently receive a car insurance rate quote quickly.