Jul 13th, 2011 by Dean Hightower
GM is offering buyers free insurance for a year with the purchase of a new Chevrolet, Buick, GMC or Cadillac vehicle. The pilot program is currently available in Oregon and Washington, but may become available nation wide if it proves successful.
Car insurance is a major expense, and on a new car, the price can be almost as much as the car payment itself. GM found that 23 percent of potential buyers on the west coast were unable to afford car insurance, according to an interview Tom Henderson, a GM Spokesman had with the The New York Times. Most buyers decide on a car based on monthly payments, so eliminating a major monthly expense will help people afford a lot more car than they normally could, at least for the first year.
Luxury cars like the 2011 Cadillac Escalade can cost thousands a year to insure.
The free GM insurance, which covers replacement of the vehicle in the event that it is totaled in the first year, is provided by MetLife insurance.
GM’s free insurance program can be combined with other Chevrolet, Buick, GMC or Cadillac sales incentives, so buyers in Oregon and Washington stand to save a lot of money in the next months on a new GM. The free insurance program will be available until September 6.