In the middle of the raging price war that is on amongst the auto insurers including majors like AllState, Progressive, and Geico, there is some good news for those who purchase a GM vehicle.
General Motors (GM) has teamed up with MetLife to tackle this price war and has announced that it will offer free auto insurance for those who purchase vehicles from GM motors. But the offer is on only until the 6th of September and is extended only in Washington and Oregon as of now. GM would be observing this program keenly and will rollout this program on a national level if it manages to attract buyers to the Buick, Cadillac, Chevy, and GMC showrooms.
But one would want to know, why this is being offered only in the Northwest states only? This is because of the fact that the region is largely dominated by European and Asian brands and there is stiff resistance to GM brands. As per the data made available from General Motors, only one-third of the vehicles that are sold in Portland and Seattle are from GM-Ford-Chrysler.
Chris Perry who is the US vice president of GM marketing has stated that this was a move to give the residents of Washington and Oregon another chance to discover vehicles such as GMC, Buick, Chevrolet, and Cadillac vehicles. There are new products such as Cruze, Chevrolet, Cadillac, Regal, Cadillac CTS Coupe, GMC Terrain, and Buick that will seem all the more appealing especially when it comes with a year’s vehicle insurance, stated Perry.
This deal may be worth around $727 on an average for an Oregon motorist and around $840 for motorists from Washington, according to reports from the Insurance Information Institute. But it would obviously be worth much more in the states where the insurance rates are much more – New Jersey and California for instance. However, one will have to wait and watch to see if the states with high auto insurance are left out by MetLife and GM after the program expansion.
To pay for this GM is pulling out funds to pay MetLife to offer auto insurance coverage for vehicle owners, out of its marketing funds that are generally used to give traditional rebates or used for discounted financing. This offers more of a psychological advantage as free auto insurance obviously has greater value when compared to cash offers. But, even these offers will come with the fine print – check it out.
