Is it mandatory to purchase insurance from a 4S store when buying a car on loan?
3 Answers
It is not mandatory to purchase insurance from a 4S store when buying a car on loan. Below is a partial introduction to auto insurance: 1. Compulsory Traffic Insurance: A mandatory national auto insurance that provides coverage for the other party's property and personal safety. 2. Special Insurance for Non-Deductible: The most important aspect of this insurance is the absolute deductible rate. 3. Vehicle Damage Insurance: This insurance mainly covers the car. If the car is involved in an accident or suffers damage due to natural disasters, these losses can be compensated by the insurance company through vehicle damage insurance. 4. Third-Party Liability Insurance: This insurance primarily covers the personal injuries and property losses of third parties in traffic accidents. To supplement the coverage of compulsory traffic insurance, a comprehensive third-party liability insurance is needed.
Last time I took out a car loan, I encountered a similar question. The bank required purchasing auto insurance to protect the loan asset, but there was no mandatory rule stating it had to be bought from the 4S dealership. I carefully reviewed the contract terms and found that as long as the insurance coverage meets the required standards—such as including compulsory coverage like collision insurance and third-party liability—you can absolutely purchase it elsewhere. I compared several insurance companies and found the 4S dealership’s quote was significantly higher. Later, I bought a policy from Ping An Insurance, not only saving over a thousand yuan but also getting more convenient claims service. Spending extra time comparing quotes is worth it—don’t worry, choose insurance based on cost, coverage, and claims convenience, and don’t fall for sales tricks. In short, the freedom to choose is key. Get quotes first before making a decision, and you won’t lose out.
Our family bought the car with a loan, and with a tight budget, we're very sensitive to insurance costs. You have to understand that while the bank requires you to insure the car, they don't mandate purchasing insurance from the 4S store. I found that 4S store insurance is more expensive because they take a high commission. For example, I chose an external policy from PICC, which covers both compulsory traffic insurance and commercial insurance, but it was 400-500 yuan cheaper. I suggest you first clarify the insurance requirements in your loan agreement—usually, it's just about meeting the amount and type, such as third-party liability coverage needing to be over 500,000 yuan. Then, get quotes from several providers and don't rush to sign. Remember, consumer rights support your choice of channels, saving you money and giving you peace of mind.
