Is it mandatory to purchase installment car loan insurance at a 4S store?
2 Answers
When purchasing a car through installment loans, it is not mandatory to buy insurance at a 4S store. Here are the detailed explanations: 1. Typically, when buying a car at a 4S store, there may be two types of loan purchase models involved: one is a loan from an auto consumer finance company at the 4S store, and the other is a loan from other banks or financial institutions. 2. The former allows customers to apply for a loan to purchase the desired vehicle with the assistance of the 4S store, while the latter requires bank approval and disbursement first to obtain funds for purchasing the car. 3. However, regardless of the loan method, customers have the right to freely purchase insurance. Therefore, when purchasing a car through a loan, users can choose their own insurance provider to buy car insurance and are not bound by the 4S store.
You don't necessarily have to buy insurance for your installment car loan at the 4S shop. I've talked to many people about this and found that salespeople often push for in-house insurance because they get kickbacks, but there's no hard rule. You're free to choose other insurers like Ping An or PICC—big names where you can check quotes online or visit their branches, usually saving 10-20%. The downside is that buying at the 4S shop is more convenient; everything’s settled during new car delivery without extra legwork. But you’ll pay more and might get upsold unnecessary coverage. My advice: Before taking the loan, compare quotes from a few insurers, check if the coverage meets loan requirements, then decide. Don’t let salespeople intimidate you—remember, it’s your right not to overspend. If forced, file a complaint with consumer associations—it’s a solid move.
