New Car Insurance: Can you believe that in the name of car insurance, dealerships charge more money from customers?
Car Insurance From Dealership: Can you believe that in the name of car insurance, dealerships take more money from customers? This happens quite often. Dealerships have many ways to do this without customers even realizing that they are paying more for insurance. Let us tell you how dealerships charge higher premiums in the name of car insurance.
Higher profit margin
Often car dealerships charge customers an extra premium on new car insurance because they also add their profit margin to it. That is why they provide insurance to customers at a higher premium. And, the interesting thing is that many customers do not pay much attention to it.
Non-essential products (add-ons)
Many times dealerships also add non-essential products to the insurance policy like say roadside assistance or tire protection cover etc. This increases the premium. However, some people may also need them. So if you want to take them, that is a different matter.
Put pressure on customers
Many times dealerships pressure customers to buy insurance from them. She tells customers that it is not possible to buy a car without taking insurance from them. By saying this, she sells high premium insurance to the customers. Whereas, you can buy insurance from any agent or online.
Take care to avoid fraud
If you want to avoid such fraud, then first of all know about car insurance cover and add-ons. Make sure you understand the type of insurance policy you want and skip any add-ons that don’t seem necessary. Also, compare the insurance premiums of different insurance companies, this will help you get a good deal.
