Save Money By Not Purchasing Car Insurance At Your Car Dealer

By: Ajeet Khurana

If you are planning to buy a car, make sure you are prepared with all the necessary information. Besides having to actually select a vehicle and arrange for financing, you need to look out for a good car dealer to get insurance on the car. With every step and decision you make, there are a lot of official forms that you will have to fill out. The car dealer is one of the most confusing people you will meet along the way, so car buyers must be very careful. Go somewhere that has that you have heard good things about. The secret behind every car dealer is that they are not necessarily concerned about your well-being the commission they will make off of the vehicle they sell you, plus any add-ons.

In some states you can purchase your car insurance from the dealer who sold you the car. Bad idea. The reason for this is that dealers will unduly markup your insurance rate because again, they are in it for profit. They care about making big, fat commissions off your purchase -- customer protection is not their priority. It IS a priority, because they will want you back again, but your specific financial needs are not at the top of their list.

You will notice they will give you terrific treatment while you are there. Again, this is because they are in the wining and dining stage that appears before every closed deal. Obviously, you are more likely to purchase something from someone that treats you well. In the eyes of the car dealership, they are competing with all of the other dealers that try to win your trust and favor while you are making a major financial decision. They are hoping you are going to be so blinded by their niceties that that will seriously affect your decision to purchase, lease, or walk away.

While you may love being treated like a big-time celebrity,, stop for a minute if you hear the words gap insurance. Gap insurance is an insurance coverage that will cover you in the event of a total loss. It will cover the "gap" created by the difference between the value of your vehicle and what you currently owe on it. You may think you won't need it, but you will. Immediately after the maiden cruise in your new car it depreciates in value, so even if you got in a wreck or had it stolen minutes after driving away, you are going to owe more money than you intended. Gap insurance covers you for such contingencies. It is a good idea to get it, a bad idea to get it from the car dealership.

Again, the same principle applies. They have already marked it up to increase the volume of their bank accounts. In most cases, the markup can be anywhere from $500 -- $1000 above the cost of the actual coverage. This is a known fact published in Automotive News. There are quite a few authentic sources providing for for Gap Insurance either online or through a local car insurance company. While you are looking to get better insurance deals for your newly purchased or leased vehicle, do it through an actual insurance company. There is nothing wrong with the insurance offered through your car dealer, it will help you insure your car in these situations, but it will also increase your expenses.

About the Author



Ajeet Khurana writes on a wide range of topics -- technology, business, and more. He recommends cheap car insurance, car insurance, and Ohio Car Dealers.