Auto insurance included when you buy GM
When you buy a new vehicle, you want it to be easy. Assuming you have a license and can afford to pay cash or service the loan, it should be sign here and drive away. No extra hassles in finding the best deal on insurance, no shopping around, just the convenience of a one-stop service. Well, here comes GM with a test marketing offer. Presumably, if it shows an increased level of sales, it will be rolled out to other states. For now, this is for those who live in Washington and Oregon. It’s all very simple. You walk into a GM dealership, pick one of the models included in the offer, arrange payment of the list price, and then drive it away.
As well as only being available in two states, there’s no haggling on the price of the vehicle. You buy at the list price or not at all. The dealers will not offer a discount, even if you refuse the insurance cover on offer. This leaves you complete freedom on the models not included in the offer, but ties you into the insurance package if you buy the eligible vehicle. Second, it only applies to you as a private individual. If you want to use the vehicle for any kind of commercial purpose, you will be refused cover. Other than these two limits, the insurance cover is automatically available. So is this a good deal?
As with all deals, the answer depends on you. When setting the premium rates, the insurer looks at whether you represent a risk. If you have years of experience and have not made a recent claim, you will get the lowest rates. Should you be under 25 or over 75, you will be quoted higher rates. If there are convictions for driving offenses suggesting you are in the highest risk groups, cover may be refused or only offered at the highest rates. So if you are currently receiving the lowest rates and want to buy new, check out the discounts available on new models not included in this promotion. The discounts may pay your first year’s premiums. Better still, you avoid the interest payments on the element of the vehicles list price representing the premium. But if you’re in a high risk group, this may be a good deal, buying you one year’s cover for an “average” premium rate. A little research will confirm whether you will benefit or not.
As an aside, GM also suggests this will reduce the number of uninsured drivers on the roads. This is a Pinocchio moment because most of the people who drive uninsured cannot afford to buy new cars. There’s little chance of the claimed public benefit being real. As it is, the cover offered includes basic liability at 100/300/50, collision, comprehensive and medical expenses. For everyone borrowing on a standard auto loan, this offers reasonable protection. Once the first year is over, the insurer will offer you the commercial rate to continue the cover. At this point, get auto insurance quotes from all the main insurers in your state. Just because you’ve had a payment holiday does not mean you abandon the best habits for buying auto insurance. Always shop around to find the best deal.