Why is car insurance more expensive at 4S stores?
1 Answers
Purchasing vehicle insurance through different channels affects pricing. Insurance companies collaborate with car dealerships as part of group business agreements, where insurance discounts are already provided to the dealerships. However, many dealerships, considering operational costs, rarely pass these discounts on to customers. Consequently, purchasing the same insurance coverage directly from an insurance company or through telemarketing channels tends to be cheaper. Additional details are as follows: 1. Types of Vehicle Insurance: Vehicle insurance typically includes compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, theft insurance, spontaneous combustion insurance, scratch insurance, passenger insurance, no-deductible insurance, water damage insurance, among others. Except for compulsory traffic insurance, the rest are commercial insurances, and you can reasonably choose the coverage you need to significantly reduce insurance costs. 2. Factors Influencing Car Insurance: Several factors influence car insurance premiums, such as the vehicle's zero-whole ratio, the number of insurance types purchased, the number of claims in the previous year, traffic violations, and the purchasing channel. 4S stores are just one of many channels for purchasing car insurance, and the discounts they offer may differ from other channels. When buying car insurance, it's advisable to compare options to find the channel that offers the best price and service for your needs.
