Associated Press (New York) - Auto insurance can really drive up the price of buying a car. Now General Motors is hoping to get more buyers into showrooms by offering a free one-year policy to customers who purchase or lease new cars before Sept. 6.
The promotion is being tested in only Oregon and Washington right now. But the company says it may eventually be rolled out more widely.
The Details
The offer applies to new 2010, 2011 or 2012 Chevrolet, Buick, GMC and Cadillac cars, trucks and crossovers. The policy, which is being provided by MetLife Auto & Home, includes liability, collision and comprehensive coverage.
There is no discount for buyers who decline the offer and opt to find their own policy.
MetLife notes that its policy includes the replacement of new vehicles that are damaged beyond repair within the first 15,000 miles or the first year, whichever comes first. Unlike with many other insurers, MetLife says that its policy does not require out-of-pocket expenses to make up for the depreciation of the car at the time of the accident.
Background
At the end of the one-year policy, consumers can opt to renew with MetLife. The cost of auto insurance can vary significantly depending on the owner's driving history and other factors. But according to the Insurance Information Institute, consumers on average paid $727 for auto insurance in Oregon. In Washington, the average paid was $840.
Nationwide, the average paid for auto insurance was $789 a year.
General Motors said it will decide whether to make the program more widely available after the pilot program in Oregon and Washington ends.
