Generally speaking, 4S stores will require that they must go to their designated insurance company to buy auto insurance, otherwise they will not be able to apply for mortgage loans, and even the deposit will not be refunded. This is the overlord clause and should be considered invalid.
According to Article 40 of the Contract Law, the standard terms are invalid if they fall under the circumstances stipulated in Articles 52 and 53 of this Law, or if the party providing the standard terms exempts the other party from its responsibilities, aggravates the other party's responsibilities and excludes the other party's main rights.
In buying a car by mortgage, the practice of establishing an insurance company in a 4S shop belongs to the practice of excluding the other party's rights and should be invalid. Therefore, car buyers are free to change insurance companies.
Extended data:
Provisions on the overlord clause in the Consumer Protection Law;
Article 26 When using standard clauses in business activities, business operators should draw consumers' attention to the quantity and quality, price or cost, time limit and method of performance, safety precautions and risk warning, after-sales service, civil liability and other matters related to consumers' vital interests, and explain them according to consumers' requirements.
Operators shall not make unfair and unreasonable provisions to consumers, such as excluding or restricting consumers' rights, reducing or exempting operators' responsibilities, and aggravating consumers' responsibilities, by means of format clauses, notices, statements, shop notices, etc. , and shall not use format terms and use technical means to force transactions.
Format terms, notices, statements, shop notices, etc. If it contains the contents listed in the preceding paragraph, its contents are invalid.
References:
Baidu Encyclopedia-People's Republic of China (PRC) Contract Law
Baidu Encyclopedia-People's Republic of China (PRC) Consumer Rights Protection Law