August 7, 2011

GM Now Offering Free Car Insurance For Some New Buyers

Auto insurance coverage is a major cost for most families, and while discount programs and online quote websites help to lower insurance premiums, there's certainly no substitute for free insurance. In an effort to drive up their sales of new vehicles, General Motors has announced a program which will pay the car insurance bills of new GM vehicle owners. This program may be a tremendous incentive for drivers who are considering new vehicle purchases, but qualifying for GM's free car insurance program can be difficult.

Currently, free car insurance is only offered to Washington drivers for a limited time. Drivers must purchase their vehicles by September 6, as the program ends (at least temporarily) after this date. The free insurance program is only offered to drivers who purchase 2010, 2011 or 2012 models of General Motors vehicles, including Buicks, Chevrolets, Cadillacs and GMCs. The program is only offered with a single insurance option from MetLife. However, GM's free car insurance policy appears to be very well-designed, and unlike traditional insurance policies, the free coverage won't deduct for depreciation if the new vehicle is damaged beyond repair within the first year of ownership. If the program is successful, it could be an incredibly effective means of improving GM's sales. However, it's important to note that the free car insurance only lasts for one year, at which point drivers must decide to pay for their own coverage through MetLife or look for another insurance provider.

Free auto insurance coverage significantly reduces the overall cost of any type of new vehicle, but there are several things to keep in mind. Drivers might find a better deal by simply shopping for their own insurance, especially if they weren't planning on buying a new vehicle in the first place. Older vehicles are often much less expensive to insure. Looking into insurance discount programs and shopping for insurance online can reduce costs for GM buyers, possibly lowering the total cost of vehicle ownership below what General Motors is offering.

Savvy drivers should research car insurance before deciding which vehicle to buy, as this is the best way to ensure low costs. Even so, General Motors may decide to expand the program beyond Washington if it's successful, and they may even take the program nationwide. Car manufacturers look for successful incentives that can drive sales, and as many drivers are very concerned about the cost of car insurance, GM's free auto insurance program might be very successful in a difficult economy where drivers are looking at every possible way to cut down on the cost of car ownership.