Can You Buy Car Insurance at the Dealership?

Get Car Financing
Even with poor credit.

By

Contributing Writer

Bethany Hickey is a graduate from the University of Michigan-Flint, with a bachelor’s in English-Writing. She is a content writer for Auto Credit Express, CarsDirect, and many other automotive blogs, as well as the Poetry Editor for UM-Flint’s writing magazine.


, Contributing Writer - February 22, 2021

Thanks to smartphones and other modern-day tech, buying auto insurance on the go is pretty seamless and convenient. You may even be able to buy insurance while you’re finishing up the car purchase at the dealership, too, if they've signed up with insurance providers.

Buying Auto Insurance at the Dealership

If you’re financing a vehicle, you’re required to carry full coverage auto insurance. Even if you’re not financing, all states have rules regarding insurance coverage, meaning it’s a necessary purchase if you want to drive your car legally. Before you can drive your new-to-you or brand new vehicle off the dealer’s lot, you need proof of auto insurance.

In a recent DealerPolicy study, 83% of people say they want to do everything related to car buying at the dealership, including purchasing an auto insurance policy. We all like a one-stop-shop experience it seems – it’s definitely more convenient!

If you’d prefer to buy the insurance and your vehicle at the same time, it’s certainly possible. Insurance agents are often available at dealerships for car buyers that don’t currently carry any auto insurance, or for those who are unhappy with their current insurance provider. Many dealerships are partnered with insurance companies in their local area.

In some cases, you may qualify for better rates and deals when you buy insurance at the dealership. Some finance managers may offer to waive your premium for a year or bundle coverage with their other products.

What You Could Buy at the Dealership

Buying auto insurance at the dealership means you need to spend a little more time there. Dealers themselves can’t sell you insurance, so you need to meet with an insurance agent or the finance manager in the dealership's finance and insurance (F&I) department.

It’s pretty customary to choose a vehicle with a dealer, then head to the F&I department so the finance manager can offer you additional products and services. Dealer add-on menus typically include things like:

  • Auto insurance options through their partners
  • Extended warranties
  • GAP insurance
  • Anti-theft devices
  • Appearance protection
  • Vehicle identification number (VIN) etching

These products are completely optional, and you’re by no means obligated to purchase any of them. However, if you’re purchasing a new vehicle or you’re leasing, GAP insurance is a good idea in almost every case.

Financing Options for Borrowers

In addition to shopping for auto insurance with the dealership’s F&I department, most dealerships are signed up with lenders as well. If you’re looking for the full one-stop-shop experience with a dealership, it’s certainly possible to get financing and auto insurance all in one place.

If you choose to apply for financing with a dealership, you may also have bad credit lending options. Some are signed with subprime lenders that are equipped to assist borrowers with credit challenges.

If your credit is worse for wear, finding a special finance dealership that’s signed up with subprime lenders means a higher chance of qualifying for vehicle financing. These lenders first look at your entire financial situation, and then determine the maximum car payment you qualify for. From there, you choose a car with a dealer, and then you can head to the F&I department to get auto insurance if you want to.

Find a Dealership That Fits You

Not every dealership is signed up with subprime lenders. Finding one that is can be a hassle, but we’ve created an easier way to get the financing you need with poor credit.

Here at CarsDirect, we’ve produced a nationwide network of dealers that assist bad credit borrowers. Our connections span across all 50 states, so fill out our free auto loan request form and we’ll look for a dealer in your local area that can assist with credit challenges.

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, Contributing Writer

Bethany Hickey is a graduate from the University of Michigan-Flint, with a bachelor’s in English-Writing. She is a content writer for Auto Credit Express, CarsDirect, and many other automotive blogs, as well as the Poetry Editor for UM-Flint’s writing magazine.


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