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.


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