dcsimg

Be careful of auto insurance solicitations when purchasing a vehicle.

Written by Ryan Lowell on October 5, 2010 & Posted in Insurance

Should You Take the Car Salesperson's Auto Insurance Recommendation?

Q Dear Ryan,

I bought a new "used" car and my car salesman recommended a certain car insurance company. He says this company always gives his customers the lowest auto insurance quotes. Should I trust his advice? - Tom, Arizona

A Whoa, Nellie! Car salespeople have no business giving you auto insurance advice! In fact, it's usually illegal for them to do so. State laws forbid unlicensed people from soliciting insurance products. "Soliciting" can include telling people they can save money with a particular insurance company.

Massachusetts, for example, recently issued a bulletin to auto dealers after reports that car salespeople were recommending particular insurance companies. Here are some examples from the Massachusetts Department of Insurance on what car salespeople are NOT supposed to do:

  1. Advise a customer that money could be saved by buying car insurance from a certain company
  2. Assist the customer in obtaining auto insurance online by using an office computer to search for motor vehicle insurance while the customer watches
  3. Offer the customer the use of a computer at the dealership so that the customer can search for auto insurance--but the computer is preset to the Web site of a particular insurance company
  4. Arrange financing for the purchase of a car and tell the customer that insurance must be purchased from a particular insurance company

So, Tom, in a nutshell: Don't trust the car salesman's insurance advice. Do your own insurance shopping to find the best deal.

SHARE THIS STORY

Featured Insurance Companies

Insurify™️ - Virginia Drivers Can Save Up to 50%

  • The easiest way to compare 20 real quotes from top brands
  • Prices starting from $29/mo
  • Trusted by more than 4 million drivers - 4.9 star reviews
  • As seen on Fox News, WSJ, Forbes, Fortune Magazine

Ask Our Expert

View All

Q. Will my policy pay off my car loan if my car is totaled?
A. An explanation of what happens if your car is totaled out when you still owe money on your car loan or lease. Read More

Q. Will car insurance cover my stolen personal items?
A. If someone steals personal items from your car, will car insurance cover those items? Read More

SHARE YOUR THOUGHTS

Required parameter not set.
Request a Quote for:
Go

Recent Insurance Stories

View All
If my car is totaled will my loan be paid off?
An auto insurance expert fields a question from a consumer who wants to know if their insurance policy will pay off their car loan if their car is totaled out. Find out what happens with your car loan if your car is declared a total loss. I totaled Read More...
  • Are my personal items covered by car insurance?
  • Find out how an SR-22 certificate of financial responsibility relates to your car insurance policy.
  • Find out whose insurance pays if you lend out your car and a friend causes an accident.
  • What is uninsured motorist coverage and do you really need it?
  • Featured Insurance Companies

    Cheap Auto Insurance - Save up to 40%

    • Top Rated Insurance Companies
    • Bundle Home & Auto for additional savings
    • Save up to 40%
    • Get Started Now!