Why is the car insurance at 4S stores expensive?
2 Answers
Because purchasing car insurance at a 4S store simplifies the claims process, ensures the quality of parts, and offers significant advantages in repair technology, which is why the price tends to be higher. Introduction to the following channels for purchasing car insurance: Telemarketing: Telemarketing is a common method of selling car insurance in daily life. Due to intense competition among peers, telemarketing prices are relatively cheaper. Additionally, services like driving the car in for repairs when issues arise are generally available. However, some salespeople may exaggerate to boost performance, so it's important to make a reasonable choice when purchasing insurance. Referral by acquaintances: The biggest advantage of referrals by acquaintances is the relatively lower price. After an accident, there is usually a better way to handle the situation, such as recommending a reliable repair shop. However, referrals also have drawbacks—if there's a problem with the product, it might be more troublesome to resolve. Insurance company official website: Purchasing insurance through the official website of an insurance company is another common method. It is cheap, convenient, and relatively easy when filing claims, making it an important channel for many car owners to buy car insurance. The downside is that you need to handle everything yourself.
When I first bought car insurance at a 4S dealership, I also wondered why it was so expensive. Later, I realized it's because they emphasize professional OEM services, such as using genuine parts for repairs during claims instead of cheap substitutes, which naturally drives up costs. Additionally, 4S dealerships have higher expenses like store rent and staff salaries compared to smaller shops outside, and these hidden costs are factored into the premiums. The service is more hassle-free—if an accident happens, they handle everything in one place, so you don’t have to scramble to find a repair shop yourself. But the higher price makes sense. My car had a minor collision, and the insurance company arranged repairs through the 4S shop quickly and precisely, making it look like new. In comparison, external agents are cheaper but offer inconsistent service, often dragging things out. In the long run, spending more for solid coverage is worth it, especially for new cars where maintaining the vehicle’s condition is a priority.
