GM Offers Free Auto Insurance to New-Car Buyers

Just the Facts:

• General Motors is experimenting with free auto insurance for new-car buyers in Oregon and Washington.
• The deal applies to new 2010, 2011 or 2012 Chevrolet, Buick, GMC and Cadillac vehicles and is only good on purchases through September 6.
• Consumers will get a one-year insurance policy from MetLife at no additional charge.

DETROIT ? General Motors is experimenting with free auto insurance for new-car buyers in Oregon and Washington in a feel-good test calculated to entice buyers into showrooms by making vehicles more affordable.

The standard auto insurance program applies to new 2010, 2011 or 2012 Chevrolet, Buick, GMC and Cadillac vehicles and is only good on purchases through September 6.

Consumers will get a one-year insurance policy from MetLife at no additional charge.

In an interesting twist, GM?s top marketing guys ? Joel Ewanick and Chris Perry ? came to the Detroit automaker from Hyundai, which pioneered such innovative tactics as the vehicle return program.

Perry, who is now the U.S. vice president of General Motors marketing, explained the freebie auto insurance program in a statement. ?We want to give residents of Oregon and Washington another reason to discover Chevrolet, Buick, GMC and Cadillac vehicles,? Perry said. ?We have new products like the Chevrolet Cruze, Buick Regal, GMC Terrain and Cadillac CTS Coupe that are now even more appealing with a year?s worth of insurance.?

The policy covers the vehicle and anyone who drives it with the owner?s permission for a full year from the date of purchase, as long as the original purchaser continues to own or lease the vehicle. The policy is not available on vehicles purchased or leased for certain commercial or fleet purposes, said GM.

GM noted that under the policy, if a new car is damaged beyond repair within the car?s first year or first 15,000 miles, whichever comes first, MetLife will repair or replace the vehicle with a new vehicle, without deducting for depreciation.

?Many auto insurers subtract miles driven at the time a vehicle is damaged, resulting in thousands of dollars in out-of-pocket expenses,? said GM.

Inside Line says: Here?s hoping this experiment morphs into a nationwide program.

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Source: http://www.i-insurance-quotes.com/gm-offers-free-auto-insurance-to-new-car-buyers/

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