Dealer MBI vs Independent MBI

Make an informed decision when a car dealer offers you their warranty — know how it compares to independent MBI.

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When purchasing a used vehicle from a New Zealand car dealer, you'll often be offered a warranty or MBI product. Dealers typically earn a commission from these products, which influences what they offer. Understanding the difference between dealer-arranged MBI and independent MBI helps you negotiate better terms or make an informed decision to arrange your own cover.

What Dealers Offer and Why

Car dealers in NZ commonly offer MBI products from providers like AutoSure and Provident Insurance, often bundled with the vehicle purchase. These products are genuine and reputable, but the dealer markup on them can be substantial — sometimes 30–50% above the cost of arranging the same cover directly. Dealers earn commission on these sales, which creates an incentive to upsell comprehensive cover even when more basic cover may suffice for your vehicle and budget.

Advantages of Independent MBI

Arranging MBI independently after a vehicle purchase offers several advantages: you can shop multiple providers simultaneously, you're not under sales pressure at the point of vehicle purchase, you can take time to read policy terms carefully, premiums may be lower without dealer markup, and you're not limited to products the dealer has a commercial relationship with. Independent brokers like Cover4You represent multiple MBI providers and provide objective advice.

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