First of all, dealerships are not financial companies, they do not finance anything; they just find the best deal for you through their participating financial institutions, capital management companies, etc. Nor they are insurance brokers. No one can force you to have an insurance with a particular broker, it is 100% your choice.

I just bought my 350Z last night and I am using my own insurance used on my trade in car.

The confusion might be that if you are financing, the pink slip holder, in this case a Bank or a Credit Union, WILL require you to have a full coverage insurance on your car. But this is regardless of where you financed your car.

Let me know if you have any additional questions.

 

I agree, you get your own insurance, if you are trading in a car your insurance company usually gives you 30 days to make the change of cars, but I would do it right away. I didn't trade a car in but since I knew my VIN before the car arrived I added it to my policy a couple of days before so I would have insurance right away and not worry about it, and I got financing through the dealer at Bank of America, so your source is incorrect.

 

They are just trying to pressure you into buying their F&I products. Don't! Most of the time, they are overpriced. Besides, you will usually get discounts with your Homeowners/Renters policy and auto together.