5 Disadvantages of Buying Insurance from Your Car Dealer

posted by Chris Valentine

When you buy a car, you want it to remain in good condition and serve you for the longest time. No one wants to spend money on a substandard car, especially when spending more. Unfortunately, many new car owners backslide when buying auto insurance. When purchasing insurance for your vehicle, it is crucial to go for the best since it caters to any expenses you may have with the car. First, car insurance is mandatory if you want to drive your vehicle. Second, it offers protection against costly expenditures in case of anything.

In some cases, first-time car owners buy insurance from their dealers. For convenience, buying from a dealer means you will not need to go through the details or spend time looking at the insurer’s credibility. However, buying insurance from a car dealer comes with some drawbacks.

Lack of Policy Comparison

Insurance companies provide numerous insurance policies. Nowadays, you can compare insurance prices to get the best-priced policy for your car. You can search for a car insurance policy online and narrow your choices. You can also compare insurers to find the most reliable car insurance company in Naples, FL. That way, you can find the best coverage with the best price. The bad thing about buying insurance from your dealer is that you cannot look at different policies. You will have to go with what your dealer offers, which can be problematic.

Fixed Coverage

When buying insurance, the lack of a comparison option means you cannot choose what to include in the coverage. In most cases, car dealers offer fixed coverage. That means you cannot decide what to have on your coverage. For example, the dealer may provide a comprehensive insurance plan with too many unnecessary features you don’t need. That way, you end up paying a premium for coverage you don’t need.


Many car dealers work with a specific car insurance company. That means they are not flexible when it comes to offering insurance coverage. It means you are tied to buying insurance from one provider. You may have a good provider, but go ahead with the dealer providers’ option, whether they are reliable or not. Therefore, choosing a great company like Del Toro Insurance is best to ensure you get the coverage you need for your car.

Non-Customized Add-ons

When buying insurance, one vital thing you need to check is the add-ons. The issue about purchasing insurance from a car dealer is that you get fixed coverage with extended add-ons. Despite your needs, you may get a complete range of add-ons or specific ones. This lack of flexibility when choosing add-ons is another disadvantage of buying from your dealer.

No Digital-First Insurance

Lastly, purchasing insurance offered by your car dealer denies you the chance to choose insurance online offered by digital-first insurers. Nowadays, a lot has changed, and more is happening online. The good thing about buying from digital insurers is that you can choose the coverage you want. The choice you make is also not influenced by a third party. Buying insurance online also gives you access to low-priced policies that don’t compromise coverage. It also means no paperwork, seamless claim settlement, and policy comparison before buying.

Key Takeaways for Disadvantages of Buying Insurance from Your Car Dealer

If you want to buy insurance from your car dealer, go through the policy to see if it is what you need. You need to choose insurance that can cover all your needs without spending on unnecessary features. Nonetheless, choosing a reliable car insurance company can avoid all the drawbacks mentioned here.

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