GM Car Buyers In Two States To Get Free Car Insurance

GM vehicles sold in Washington and Oregon come with new standard equipment; a one-year auto insurance policy. The carmaker said it is test-marketing the concept in the two states in a promotion that runs through September 6, 2011.

Drivers in Oregon and Washington who take delivery of a new 2010, 2011 or 2012 Chevrolet, Buick, GMC or Cadillac car, truck or crossover between now and September 6 will receive the insurance policy from MetLife Auto & Home at no additional cost.

Since insurance, especially on a new vehicle, can be very expensive, GM said it's offer is designed to make its cars more affordable. It also streamlines the car-buying process, the company said.

Attention-getter

“We  want to give residents of Oregon and Washington another reason to discover Chevrolet, Buick, GMC and Cadillac vehicles,” said Chris Perry, U.S. vice president of General Motors Marketing.  “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 auto insurance includes both liability and physical damage coverage and exceeds minimum requirements in the two states.

“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” said Bill Moore, president of MetLife Auto & Home. “Our new car replacement feature is a benefit not found in most auto policies.”

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.

Insurance often an impediment to sales

In its announcement, GM did not say why it chose Washington and Oregon for its test market. The company did say that market research indicated the consumers often pointed to the high cost of insurance as a reason not to buy a new car.

MetLife obviously hopes to pick up ongoing new business from the promotion, with consumers dropping their present insurance and continuing the MetLife policy after the one year is up.

New car purchasers are free to decline the offer of insurance, but GM said it would not offer a discount on the vehicle purchase price for those who do. The company also did not say when or if the promotion would be expanded to other states.