Massachusetts Warns Car Dealers over Insurance Advice

Auto dealers in the Bay State must be careful of what they tell car-buyers about purchasing insurance, the Massachusetts Division of Insurance warns dealers in a newly issued bulletin.

State law prohibits anyone without an insurance license from soliciting, negotiating or selling insurance products. “Soliciting,” according to the bulletin, includes advising a car-buyer that he or she could save money by going to a particular company.

The warning follows complaints thatsome dealers are assisting their customers with the purchase of motor vehicle insurance. In some cases motor vehicle salesmen allegedly are recommending particular insurance companies that sell motor vehicle insurance policies to their customers.

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Source: Mass. Division of Insurance