Looking for a new car can be fun and exciting, but it can also be overwhelming. This past weekend I went car shopping with my best friend Melissa. She test drove an SUV that she had been admiring for some time. Afterwards, we sat down with the salesman to discuss the sale. Melissa had not decided if she wanted to buy the vehicle or not. The price was affordable, but she was concerned about how it would affect her insurance, since she had previously insured an older car. Not missing a beat, the salesman informed us that the dealership now had licensed insurance agents who could quote her a policy. Playing along, she agreed to see what type of policy they could offer her. The results were baffling. Although her monthly premium was very low, as an insurance expert, it was easy to spot the major flaws in her plan. Her deductible was enormous, meaning if she was in an accident while driving, she would have had to pay a lot of money before the insurance would cover any loss. Also, her liability coverage was very low. I know that Melissa owns a home, so I know her liability coverage needed to be higher to protect her assets.
There is a big difference between insuring your vehicle through an “agent” at a car dealership and a Loiselle Insurance Agent…the dealers probably don’t know their customers’ unique needs for financial protection like we do. They are looking to make a car sale. So if they can offer you a “cheap” insurance rate which might help them sell the car , they will. These “cheaper” rates can end up costing so much more with inflated deductibles and decreased liability. These tricks leave consumers exposed to many types of financial risks and lawsuits. It also may cost you more if you are receiving discounts through your current insurance plan for bundling home and auto policies.
Driving away from the dealership, I couldn’t help but wonder how many people choose to purchase insurance through their car salesman as a result of miseducation. Many people do not realize that they are usually covered by their existing insurance policy on the drive home from the dealership. If you have a standard auto policy with just liability coverage, some insurance companies allow up to 14 days to be notified of the change of vehicle. However, with comprehensive and collision insurance, you should notify your insurance company immediately, but many policies do allow 3-4 days of coverage. Pick-ups trucks and vans may be excluded depending on your policy.
So, if you are thinking of purchasing a new vehicle, give us a call. We can let you know what your insurance company requires when you buy a new car. We can also quote and compare coverages for you with over twenty insurance companies to make sure you get the right coverage at the right price. Don’t forget we are also here on Thursday and Friday evenings until 6pm and Saturdays until 12 pm. So if you are car shopping on the weekends and have any questions, give us a call.
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