Tag Archives: GMC

General Motors offers free car insurance

© GM Corp.

First there was 0% financing. Now, there could be zero car insurance. General Motors is launching a trial program where new car buyers will get free car insurance for a year. It’s called an “Insurance Break.”

General Motors is rolling out the program for anyone who takes delivery of a 2010, 2011, or 2012 Chevrolet, Buick, GMC, or Cadillac car, truck or crossover between now and September 6th. The big catch,  the program is only valid in Oregon and Washington. However, it’s not uncommon for programs like this to roll out nationwide. GM even said in its release that it is “testing auto insurance as a standard feature to determine consumer appeal.” The goal is to streamline the car-buying experience and make it more affordable since affordability is a big issue in today’s market.

MetLife Auto and Home will provide the coverage that will cover liability and physical damage for anyone who drives the car with the owner’s permission. Here’s a look at the limitations as outlined in the Chevy Insurance Break fine print:

  • Bodily Injury and Property Damage Liability – $100,000 /$300,000/$50,000
  • Personal Injury Protection in Oregon – $15,000 per person
  • Personal Injury Protection in Washington – $10,000 per person
  • Uninsured / Underinsured Motorist  – $100,000/$300,000/$50,000

The deductible is $500.

The policy will last for a year from the date of purchase, as long as the original purchaser continues to own the vehicle.

“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.”

If the car is damaged beyond repair within the first year or 15,000  miles, whichever comes first, MetLife will repair or replace the car with a new one without deducting depreciation. This is better than a real insurance policy.

While it’s just a gimmick to get you to buy a car, it’s an interesting one. If you have really high insurance, it might not be a bad program IF you really need a car. It just depends on your situation, and the price you already pay for insurance.  If you pay $500 for insurance, it’s worth $500. Don’t let the gimmick be more valuable than it is. Think of it in terms of a dollar and cents investment to determine if it’s really a good deal.