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Report: Customers Want to Buy Insurance at the Dealership

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For people who are lazy or are not savy I can see it. Some people want a total solutions car buying experience I guess.

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Last car we got took almost 3 hours from the time we arrived to sign papers until the time we left with the car.

 

Who wouldn't relish the idea of throwing insurance into the conversation, and adding another hour or two to the process?

 

Why not stretch this out over an entire week?

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Personaly, I would not be willing to take the state insurance exam again.   I'd pass and say to the business this is more than a foolish endeavor.

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25 minutes ago, cten07 said:

3 hours to purchase is not bad.  Last car I bought took 6 hours.

I made the deal over the phone a few days in advance, so the deal was final when we walked in the door.

 

The ~3 hours was just waiting for our turn in the finance office.  Once we got in, it took just ~10 minutes to sign everything and leave.

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Considering there are some who buy vehicles sight unseen (Carvana comes to mind) and the ability to buy auto insurance from an app - this would be the next step in progression.

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I’m a bit late to this thread, but the topic does hold some personal significance to my current situation.

 

I’m 38 and never drove outside of a few hours here and there when I was 17 or 18. Tremendous fear and anxiety kept me from getting behind the wheel. Some 20 years later, I’ve decided it’s far too detrimental to my life goals/happiness to NOT drive, and as such I’m working on getting my license.

 

The license getting seems like small potatoes next to the whole car buying process. I mean, I’ve never done this before - so I’m trying to research financing, insurance, vehicles, safety features, all while trying to conquer one of my greatest fears.

 

But Insurance? That’s one of the big mysteries for me. Being a new driver, I know my premiums are going to be high. I can handle high. Fair is fair. But some of the quotes I got are not just high, but absolutely ludicrous. $600, $700, $800 a month? I make a respectable salary, but I can’t justify that. These quotes are from companies like Progressive, Geico and Liberty Mutual.

 

AllState gave me a quote for $200/mo - which is doable, but the agent also noted that quote would have to be “approved by someone higher up”, because she was “giving me a break”.
 

I can keep shopping around, but it’s hard to determine what I’ll actually have to pay for insurance. What if the $200/mo for AllState falls through, and I can’t get anything under $500/mo? 
 

It’s pretty confusing on how to go about this, because:

 

1: I can’t have a car without insurance.

2: I can’t buy insurance without a car.

3: I could conceivably be priced out of driving because the insurance is just going to be too high. It’s not that I have a bad driving record. It’s that I have NO driving record.

 

For me, going to the dealer and having options for insurance on the table would be immensely helpful, because it’s super daunting if you’ve never dealt with it before.

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11 hours ago, MB82x said:

I’m a bit late to this thread, but the topic does hold some personal significance to my current situation.

 

I’m 38 and never drove outside of a few hours here and there when I was 17 or 18. Tremendous fear and anxiety kept me from getting behind the wheel. Some 20 years later, I’ve decided it’s far too detrimental to my life goals/happiness to NOT drive, and as such I’m working on getting my license.

 

The license getting seems like small potatoes next to the whole car buying process. I mean, I’ve never done this before - so I’m trying to research financing, insurance, vehicles, safety features, all while trying to conquer one of my greatest fears.

 

But Insurance? That’s one of the big mysteries for me. Being a new driver, I know my premiums are going to be high. I can handle high. Fair is fair. But some of the quotes I got are not just high, but absolutely ludicrous. $600, $700, $800 a month? I make a respectable salary, but I can’t justify that. These quotes are from companies like Progressive, Geico and Liberty Mutual.

 

AllState gave me a quote for $200/mo - which is doable, but the agent also noted that quote would have to be “approved by someone higher up”, because she was “giving me a break”.
 

I can keep shopping around, but it’s hard to determine what I’ll actually have to pay for insurance. What if the $200/mo for AllState falls through, and I can’t get anything under $500/mo? 
 

It’s pretty confusing on how to go about this, because:

 

1: I can’t have a car without insurance.

2: I can’t buy insurance without a car.

3: I could conceivably be priced out of driving because the insurance is just going to be too high. It’s not that I have a bad driving record. It’s that I have NO driving record.

 

For me, going to the dealer and having options for insurance on the table would be immensely helpful, because it’s super daunting if you’ve never dealt with it before.

 

As with credits "NO credit is worse than BAD credit", 40yo never insured is perhaps riskier than 21yo insured from 16yo with 2 accidents and/or SR22.

 

Also, save a bundle by not financing a vehicle and buying cash, used if necessary. A lien would necessitate full coverage insurance, easily in those prices ranges quoted depending on electives and deductibles, even for the previously insured.

Edited by w00t

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22 hours ago, MB82x said:

I can keep shopping around, but it’s hard to determine what I’ll actually have to pay for insurance. What if the $200/mo for AllState falls through, and I can’t get anything under $500/mo? 

 

It’s pretty confusing on how to go about this, because:

 

1: I can’t have a car without insurance.

2: I can’t buy insurance without a car.

3: I could conceivably be priced out of driving because the insurance is just going to be too high. It’s not that I have a bad driving record. It’s that I have NO driving record.

 

For me, going to the dealer and having options for insurance on the table would be immensely helpful, because it’s super daunting if you’ve never dealt with it before.

The problem with allowing sales through dealerships is that you will see people upselling products the consumer does NOT need precisely because it will generate larger commissions.

 

The level of insurance one needs is driven by far more than legislative mandates which vary by State.  Someone with assets does NOT want a barebones minimum liability policy.  However, just because one has assets does NOT mean they necessarily need things like collision coverage (provided there is no note on the vehicle and a lender demanding full coverage). 

 

You can also play with deductibles and see what works best...I have some vehicles with a low deductible and some with a high deductible on the comprehensive coverage but have ditched collision on four of the five vehicles.  There are other coverages which one may or may not have a need for.  This is where a GOOD agent comes into play and will almost ALWAYS get you better numbers than a website inquiry or a call to a toll-free number gets you. 

 

If you have the VIN of the vehicle you are considering, it makes the task of quoting coverage much easier.  That is going to let the carrier know the really important information they need to get a quote.  It is simply not enough to say "hey, I need to know what I am looking at for a 2018 Jaguar XF." There are different trims and powertrains that impact the numbers, and of course, the newer a model might be can ALSO change the numbers from year 1 to year 2 as they get more underwriting experience.  The Fiat 124 (platform share with the Miata) was a good example of this as was the Jaguar F-Type.  The first year saw numbers that were, quite frankly, too low.  Once they got real world actuarial numbers from the claims they had paid out, the year 2 premiums increased substantially...perhaps TOO much.  I am sure the Corvette was similar back in the day since carriers had limited experience with fiberglass repair...

 

Other variables will enter the equation with a good carrier that include levels of education, packaging of policies, how many miles you drive each way to work and whether the vehicle is a work or pleasure vehicle.  These are also the reasons specialty carriers exist...I put the XK8 and Miata on a specialty policy and have full coverage for roughly $600 per year but am limited on the miles I can drive those two annually.  However, they ALSO have agreed to pay a stated value if either were to be totaled...

 

A good starting point for COMPETENT underwriting would be to speak with your local agent who handles your homeowners policies...

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On 1/23/2020 at 12:52 PM, MB82x said:

I’m a bit late to this thread, but the topic does hold some personal significance to my current situation.

 

I’m 38 and never drove outside of a few hours here and there when I was 17 or 18. Tremendous fear and anxiety kept me from getting behind the wheel. Some 20 years later, I’ve decided it’s far too detrimental to my life goals/happiness to NOT drive, and as such I’m working on getting my license.

 

The license getting seems like small potatoes next to the whole car buying process. I mean, I’ve never done this before - so I’m trying to research financing, insurance, vehicles, safety features, all while trying to conquer one of my greatest fears.

 

But Insurance? That’s one of the big mysteries for me. Being a new driver, I know my premiums are going to be high. I can handle high. Fair is fair. But some of the quotes I got are not just high, but absolutely ludicrous. $600, $700, $800 a month? I make a respectable salary, but I can’t justify that. These quotes are from companies like Progressive, Geico and Liberty Mutual.

 

AllState gave me a quote for $200/mo - which is doable, but the agent also noted that quote would have to be “approved by someone higher up”, because she was “giving me a break”.
 

I can keep shopping around, but it’s hard to determine what I’ll actually have to pay for insurance. What if the $200/mo for AllState falls through, and I can’t get anything under $500/mo? 
 

It’s pretty confusing on how to go about this, because:

 

1: I can’t have a car without insurance.

2: I can’t buy insurance without a car.

3: I could conceivably be priced out of driving because the insurance is just going to be too high. It’s not that I have a bad driving record. It’s that I have NO driving record.

 

For me, going to the dealer and having options for insurance on the table would be immensely helpful, because it’s super daunting if you’ve never dealt with it before.

Not sure if Volvos appeal to you or if you'd have any difficulty getting approved for the insurance component (and therefore the subscription itself), but this may be one option to consider:

 

https://www.volvocars.com/us/care-by-volvo/

 

Once you have continuous coverage for a reasonable amount of time, standalone insurance premiums available to you should drop significantly.

 

Congrats on confronting this.  :good: 

 

 

Edited by cv91915

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