Uninsured motorists pose a serious problem especially in states like California. So, General Motors (GM) is trying out an experiment in two states where it will help insure new car buyers. It is conducting this test in Washington and Orlando and new car buyers in these states will receive free auto insurance for one year. This is an offer from GM and the policy would be offered by MetLife.
The policy also includes the physical damage coverage and liability. It exceeds the requirements in both the states. This offer is on 2010, 2011, and 2012 Buick, Chevrolet, GMC, truck, Cadillac etc., and the offer will end on September 6th.
Some of us might view this as a positive in terms of public safety as well as individual responsibility. But GM views this offer as a business strategy that will have a direct effect and help bring in customers by making the purchase of cars seem more affordable.
Chris Perry who is the US Vice President, General Motors marketing, stated that they wanted to give residents of Washington and Oregon yet another reason to rediscover these wonderful vehicles from General Motors. He feels that the newer models such as the GMC Terrain, Chevrolet Cruze, Cadillac CTS Coupe, and Buick Regal will sound more appealing especially when they come with one-year’s insurance as well.
The policy will cover the vehicle as well as anyone who drives the vehicle with the permission of the owner. This insurance is offered at no extra cost for a period of one year from the date of purchasing the vehicle, provided the original buyer continues to lease or own the vehicle. However, this facility will not be applicable if the vehicles are purchased or leased for any fleet or commercial purposes.
But, you will also have to read the fine print. If this new vehicle is totaled or damaged beyond repair within one year of purchase or before the first 15,000 miles (whichever comes first), then MetLife Auto & Home will carry out the repairs, or even replace the vehicle with a new one, without any depreciation.
At the moment, GM is testing this free auto insurance offer in order to measure the consumer appeal. But, as of now it is available only for residents of Washington and Oregon who hold a valid driver’s license. By the end of one year, the vehicle owner may renew the insurance cover and continue with MetLife or go anywhere else for coverage.
