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Must I buy the Car Insurance offered by my car dealer?

It is not mandatory for you to buy the car insurance offered by your car dealer. Some car dealers may threaten to impose S$500 to S$1,000 surcharge if you don’t purchase the car insurance from them. What was offered to you may be a few hundreds, or even few thousands dollars more than what you can source outside.

To deal with such situation, you can try to tell them that your spouse, parent or sibling is a Car Insurance agent. If they still disallow you to buy your own car insurance, simply tell them that you will not proceed with the purchase of their vehicle. In most instances, they will relent as they will not want to risk losing the higher profits that they can get from the car sale since they probably only gets an average of S$50 to S$150 per car insurance policy sold. Furthermore, they will profit another S$3,000 to S$10,000 more if you are taking up a car loan from them.

For those who insist, do think twice on their service level and inspect the car thoroughly during your collection. If they are so sticky with even a mere S$50 profit, be wary that they may be cutting corners on some of the car’s standard features, such as the speakers’ quality, windows’ tint, tyres, rims, fabric/leather seats, car mats, servicing, GPS system or blue tooth function.

In most instances, these car dealers are not certified to distribute Car Insurance and will not want to be registered as one, even though they may be under Trade Specific Agent (TSA in short). Main reason is that they do not find the low profit from the car insurance cross-sell attractive, and all the documentations required by the Land Transport Authority, Certificate of Entitlement and Auto Loan paperwork for the vehicle’s sale is already quite tedious for them to manage. As such, they may simply refer to an agent paying them the highest referral fee and push for a car insurance policy that benefit their pockets the most, but compromises on what should be the most beneficial coverage for you.

If you really like that car for it is the only one in the market and the dealer is not giving in, and you decided to purchase your car insurance from them, do remember that you should survey and switch to a plan that benefits you the most, from the 2nd year of insurance coverage.

At quotigo, we have helped more than 10,000 customers to source for a car insurance coverage of their choice. Many have benefited from our service. Ignorance is not an excuse since we can now provide you with free expert advice for your car, Uber, Grab, van, lorry and all other commercial vehicle insurances. Call us now at 8818 0007, 8828 0007, 8838 0007, 8858 0007 or 8868 0007.