Is it necessary to purchase insurance at a 4S store when buying a car on loan?
3 Answers
When buying a car on loan, it is necessary to purchase insurance at a 4S store. The following are the insurances required for a new car: 1. Compulsory Traffic Accident Liability Insurance: It is a mandatory insurance that must be purchased for motor vehicles. The insurance company compensates for personal injury, death, and property damage caused to victims (excluding the vehicle's occupants) in road traffic accidents within the liability limit. In simple terms, it is a 'compulsory third-party liability insurance'. This insurance cannot be arbitrarily canceled, as doing so would be illegal. 2. Third-Party Liability Insurance: Abbreviated as 'TPL insurance', it refers to compensation provided by the insurance company when the insured or their permitted qualified driver causes an accident during vehicle use, resulting in personal injury, death, or direct property damage to a third party. The compensation limit for TPL insurance is selected by the insured, typically ranging from 50,000, 100,000, 150,000, 200,000, 300,000, 500,000 to 1,000,000, mainly to supplement the shortcomings of the compulsory insurance. 3. Vehicle Damage Insurance: This insurance covers the loss of the insured vehicle due to natural disasters (excluding earthquakes) or accidents within the scope of insurance liability. The insurer compensates according to the provisions of the insurance contract, which is the opposite of third-party liability insurance.
When financing a car purchase, I'm often advised by 4S dealerships to buy insurance through them, but it's not mandatory. Banks will require you to purchase comprehensive coverage to protect the loan asset, but you can shop around with external insurers like Ping An or PICC for cheaper quotes—saving hundreds to thousands compared to dealership rates, which is totally worth it. I once compared prices myself and found dealership premiums inflated with opaque service fees, so I directly opted for an economical package online. The process was simple: just take the external policy to the bank for loan approval. The key is reviewing the loan contract to ensure the insurance meets requirements—don’t rush into signing bundled dealership agreements. The savings can go toward fuel or maintenance, super practical! Just remember to consult a professional advisor beforehand to confirm coverage gaps, safety first.
As a busy commuter, I prefer getting insurance at a 4S dealership because it saves time and hassle. Although the cost is slightly higher, including the insurance premium and some service fees—potentially adding a few hundred yuan—the advantage is that both the loan and insurance can be handled in one place. The salesperson takes care of all the paperwork, eliminating the need to run around. Banks do require comprehensive insurance to secure the loan, but I don’t have to worry about price comparisons or extra legwork. The entire process is smooth, and even the license plate registration is handled simultaneously, making it ideal for someone with a fast-paced work schedule. If the budget allows, this convenience is well worth it. Of course, buying insurance elsewhere is also an option, but comparing different channels for service quality helps choose the most convenient one. Keeping maintenance records complete simplifies renewals or claims, making management easy.
