This is illegal. According to the policy, that is, cars purchased with loans are mortgaged to financial institutions, consumers still have the right to choose insurance companies freely. If consumers are required to go to the designated insurance company for guarantee, which infringes on their right to choose their own services, it is a compulsory transaction and an invalid clause.

At present, many banks will designate insurance companies to sell insurance when they borrow money to buy a car, which has even become a hidden rule in the industry. Therefore, consumers should be careful of similar "traps" of default when buying a car with a loan, and must read the terms of the contract clearly. If you find unfair and unreasonable terms, you can report them to the industrial and commercial department.