Testing Of Providing Free Insurance To New Car Buyers Launched By Gm

By Author: Marty Bay
Total Articles: 423
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General Motors has recently entered into agreement with MetLife to provide insurance for the auto maker’s new car buyers in the state of Washington and Oregon for preliminary testing.

This program will serve as the testing process that will allow GM to measure the responsiveness of new car finders to this type of offers. The good thing is, GM might also extend this offer to other states depending on whether the test would be successful or not.

This particular offer works for several vehicle models included on the company’s new car prices list in 2010 up to 2012 be it a Buick, GMC, Cadillac or Chevrolet. This program applies as long as a new GM-made vehicle is purchased in the states of Washington and Oregon by a non-commercial customer.

The free insurance program might be considered as a form of promoting the vehicles that GM have been producing and this could be considered as an effective strategy besides providing budget-friendly auto loans for buyers since car insurance ...
... is also an important aspect of vehicle ownership.

The good thing with this insurance program from GM and MetLife is that they would replace the wrecked vehicle of the customer covered by the insurance with a brand new unit that is identical to what was ruined.

This is a unique offer since most insurance companies would calculate the vehicle’s real value and its depreciation before the amount that would be covered as part of the claim is paid. In addition to this, other insurance policies are not offering vehicle replacement as an option for insurance claims.

GM and MetLife however provided specific guidelines with regards to the coverage of the insurance. This is only good for one year or 15,000 miles whichever of the two comes first. The policy would also cover the owner and individuals that were given the permission to drive the vehicle.

This particular move from GM can be considered as a good strategy since including insurance when selling vehicles is quite common in some brands sold to Asian and European markets but are rarely offered in the US market. With this, GM might be able to boost its sales for this year.