Purchasing a new vehicle can be a very daunting task, both physically and mentally. It’s a great investment, that you will probably have to handle for years to come, so you have to get it right. Not only is it difficult to buy a new car, but it can be downright infuriating to find a decent auto insurance policy, especially since the industry is rife with deceptive sales practices. So how can you make sure that you won’t get tricked by one of these sneaky agents? The answer is being informed, not only about your rights, but also about their methods.
Houston is crawling with dealerships and salespeople whose only mission is to tack on as many unnecessary costs as possible, which are expensive and offer little coverage. If you refuse to do your homework, you will probably be more susceptible to deceptive sales practices. Let’s take a look at the five most common Sneaky car dealer and auto insurer sales tricks which are perpetuated in Houston.
1. Accident Forgiveness is not that Simple
Most companies don’t immediately surcharge you for an accident. While they may forgive a fender bender, they will probably not have you covered if you crash into a pole. Accident forgiveness from sneaky car insurers will cover the property damage part of your accident, but in most cases, it will not cover claims of bodily injury. Granted, if you are generally a safe driver, you will never see an increase just by having one accident during your tenure with the insuring company.
2. “We Guarantee the Lowest Price”
Nobody can guarantee the lowest price, it is impossible, simply because every car, and every person is different. In other words, every situation will have different costs and coverage included. Maybe, if you put this marketing promise under your pillow at night the Guarantee Fairy will come and exchange it for an extra coverage, because there’s no way one company can offer the lowest price to every driver. Insurance pricing is based on statistics and facts. You can’t just lower the price to match someone else’s. It doesn’t work that way, because auto insurance is not a laptop or sounds system.
3. “Name Your Own Price”
What happens if you choose 10 dollars for insurance? This is simply ludicrous. You can’t just decide the price of your insurance policy on your own, because, as we said, there are many statistics and calculations involved in deciding a decent insurance plan. If you want to pay less for insurance in Houston, don’t fall for these deceptive sales practices. Look for a decent agent or company, research online beforehand, and make sure you know what you are paying for.
4. Moving up in Small, Incremental Amounts
What’s another extra bucks going to mean for your insurance policy anyway? This is what the sneaky agent might ask. If you look at the bigger picture, you will see just how much it counts. Twenty extra dollars/month might mean 1000 dollars in five years, and what do you get for them? We are positive it’s something you can live without. Sneaky agents will always try to lure potential customers with extra packages, and we are not telling you not to take advantage of them if they are truly useful. Just tread carefully.
5. The “No-Cancellation” Guarantee
Of course they are offering a no-cancellation guarantee, because they are already getting so much money out of the useless coverage options that you are paying for without having to. The question when will you cancel your policy with them? Don’t be fooled by deceptive sales practices which offer no-cancellation guarantees. Most of the times they are actually bad for your budget.