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The worse you drive, the bigger the deal

GM is offering free insurance if you buy a new car in the Pacific Northwest. That's a great deal if you're a terrible driver.

By MSN Money Partner Jul 7, 2011 4:25PM

This post comes from Des Toups at partner site CarInsurance.com.

 

If you're a Northwesterner with a bad track record on rainy days, General Motors has found an innovative way to lure you to a Chevrolet, Buick, GMC or Cadillac dealer: free insurance.

 

The automaker will pay the cost of a year of auto insurance through MetLife for retail buyers in Washington and Oregon through Sept. 6. Post continues after video.

What's that worth? For an insurance-friendly single 40-year-old with no violations, perhaps as much as $2,000 or so on a racy Corvette Z06, or as little as $1,000 on the sedate Buick LaCrosse. That's according to the average premium data provided by Insure.com. (Check out the most and least expensive cars to insure.)

 

But for a busy Seattle family with two teenage boys -- one of whom has a speeding ticket? We ran comparison quotes on a shiny new 2011 Chevrolet Tahoe LTZ. The lowest premium we found was $4,890 a year; the highest was $10,300.

 

Every insurer calculates rates differently; our comparison did not include MetLife rates but did survey seven national carriers who do business in the state. Premiums in Washington tend to run a bit higher than those in Oregon.

 

We couldn't find any restrictions in the fine print that would eliminate high-risk drivers, and MetLife says any driver who qualifies to buy the car automatically qualifies for the insurance. Customers are free to decline the policy, but the price of the car would be unaffected, GM says.

 

Limits under the policy are fairly generous as well -- well above the legal minimum requirements for each state, and MetLife doesn't deduct for depreciation if a new car is totaled in the first year.

 

Chris Perry, vice president of General Motors marketing, was one of the forces behind Hyundai's wildly successful lose-your-job, return-your-car program.

 

More on CarInsurance.com and MSN Money:

21Comments
Jul 8, 2011 3:37AM
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You'd think they'd pay we taxpayers back first.  But then again, why bother?  Their not the people eatting beens a rice four nights a week now are they?

Jul 8, 2011 1:58AM
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A perfect example of why this company took $50 billion from taxpayers and filed bankruptcy.    Mediocre products, weak management, greedy Unions sticking their nose in the business constantly, and of course arrogance by all of the above.
Jul 8, 2011 9:43AM
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The lowest premium we found was $4890 a year; the highest was $10,300.
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That's just plain ridiculous. Either get a different vehicle or kick those boys out of the house, one or the other.
Jul 8, 2011 9:59AM
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Wow, is the United States really that narrow minded?  Here we have an article about an American company trying to increase sales and continue to be an American company.  All the posts are about bail out money, which by the way I remember reading somewhere that GM paid all bail out money back! 

 

Now, what was wrong with the bail out?  Look at the big picture, how many people nationwide does GM employ?  How many smaller companies rely on contracts with GM to make product to continue to employ their employees?  My industry is connected to the auto industry, and don't think for a minute I wasn't scared for my well being during the whole mess. 

 

The big picture is that thousands of jobs (whether we like the unions and politics or not) were saved by the bail out.  Bail out money was repayed!  If we didn't bail out GM, how much money do you think the 1000s of employees would suck up in unemployment benefits?   And to finish, I never heard of anyone repaying unemployment :(

 

Think up people, instead of the "never buy a GM" mentallity I see here, why not buy a GM?  It's America, if we don't invest in America, then we deserve what we get.  You keep buying your Toyotas and sending money to the orient.  And before you start yelling about all the manufacturing plants these foreign companies have here in the states, remember all the profit still goes to Japan!

Jul 7, 2011 8:25PM
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Hmmm...interesting concept.  A more novel approach might include buiding a vehicle people actually wanted to buy on its own merits and running your company in a fashion that doesn't require multi-billion dollar tax payer funded bail outs.  GM will never get a shot at my business.    I'll buy Ford or a foreign car before GM or Chrysler.
Jul 8, 2011 8:38AM
Jul 8, 2011 10:16AM
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Only those who have tickets and criminals will take them up on this offer. Also it is a bad move for GM, because it will cost more and then they will be back in hot water. Gees! Whose had this stupid idea?
Jul 8, 2011 10:20AM
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For those who are participating in this.....you may want to check the LAWS in your State.  Here in Tennessee.......that​ is considered rebating.  That is a no no here and will get you a fine, and if found doing it again will get you suspension and criminal charges.  This has been tried many times before and the State insurance dept always claims that is rebating..   So BUYER BEWARE
Jul 8, 2011 12:31PM
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 I WOULD BET THAT IF YOU HAD WORKED FOR GM OR CHRYSLER YOU WOULD BE THE FIRST ONE TO SCREAM "BUY AMERICAN".

 

You mean like the liberals out there (especially teachers and college professors) who drive foreign vehicles?  How come they aren't supporting their union "brothers".  Even the DNC chairwoman Wasserman doesn't even drive American.  Why should I?  Even Ford uses Mexico to make a good many of their cars.  Where's the outrage for that?

Jul 8, 2011 9:10AM
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I wrote GM investments about their China propaganda film their excuse was that it was GM china that makes the decisions on what they put out. How stupid do they think we are everyone knows that the parent tells the children what to do and approves what is done. They will not EVER get any of my Business again. And with the CEOs comment about raising the gas another dollar-what's he thinking. I dont care if every non- american company like GM fails. Good riddance to unions who support the downfall of the American economy for the almighty dollar, greedy thugs. As for the bail out re-elect the people we have in Washington and tell them we aren't going to do it again.
Jul 8, 2011 12:10PM
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Do you really think that this insurance is going to be free? The premiums are averaged out over the projected sales of the vehicles and the average drivers who will buy into this scam and packed into the cost of the vehicle. So, if you refuse the coverage you will just be adding to the profits on the sale. And on the same note, if you are a really safe driver and your current premiums are say $500 a year and the premiums that are packed into this "promotion" are $1200 a year are you going to cancel your current insurance just to buy into this?
Jul 8, 2011 12:59PM
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I'd took advantage of the deal but it's not in Texas and I bought a new Chevrolet in Jan. 2010 that I'm very proud of. I would have bought another Saturn if O'Bumo hadn't been in the process of putting one of our best bets against the friggin Japs out of business. I've had GM cars from every generation since the thirtys and never-never have I had a problem with any one of them that was not my fault. Unlike other brands Subaru/NissanHonda/Toyota, VW and English Ford. Bunch of crap that I could never depend on. My first car was a Ford with a cracked block. Ford early flathead V8 engines had a habit of cracking so I stayed away from Fomoco until the late 90's. They are now made quite well but I still prefer GM. An automobile is basically the same no matter where it comes from or who makes it. Maintenance is the key to a dependable car but there are quality problems with some makes as of late Toyota comes to mind.

But yes to the free insurance, fuzzy dice for the mirror, free lunch, but you've probably heard they ain't no such thang.

Jul 8, 2011 11:57AM
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I haven't driven a GM in a while, and ultimately their product value to quality will make or break them.  That being said, they need to do something to get customers, and I think this promotion is an intereting idea.  I am sure Met Life is kicking in for some of the cost of insuring.  It's a pain in the **** to change companies, they are betting on some people continuing their insurance beyond the year, and kicking off the high risk people.  So overall this is probably a pretty low risk move for GM. 
Jul 8, 2011 11:44AM
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  Hey guys quit picking on the unions. I mean of course there were some who would run away with the cookie jar if you let them. But not all.And besides if you look at it honestly you will see if the unions ask and the company says yes, whose fault is it then. Did you know since the early years ( don't recall what year) companies are allowed to bring in outside workers during a dispute in contract talks. And they can be trained to do those union jobs. So if the unions ask and the company says yes,whose fault is it. Now back to the real story.Companies are after profits ,bottom line. No matter what or how its done. American companies of old sold inferior products.Albeit mostly auto companies of old to make a profit. that's a fact. Until the Japanese came along.And still the Japanese cars are still better products, i hate to say in most configurations. Check it out. Who gives a sh_ _ what they do to make a profit. As long as its a decent car..And of course legal.
Jul 8, 2011 8:56AM
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Are they really that desperate?  I will not own a GM vehicle for several years.  Between stupid management and a union that was willing to pay the guy mowing their lawn the same as the factory workers making $75 hr including benefits, they don't need my money.
Jul 8, 2011 12:03PM
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Sandsailer, you obviously fell for the left controlled media.  GM did not pay back all of the bailout money.  They wrote off $ 14 billion.  The taxpayers got screwed hard. 
Jul 8, 2011 9:51AM
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YOU ANTI GM PEOPLE ARE ABSOLUTE IDIOTS.  YOU RATHER GIVE OUR MONEY AWAY TO FOREIGN GOVERNMENTS THAN KEEP IT HERE.  AND DON'T GIVE ME THAT "THEY'RE BUILT IN AMERICA CRAP"!!  WHERE DO YOU THINK THEY SEND THE MONEY.  YOU WOULD RATHER MAKE SURE YOUR EMPLOYING SOMEONE OUTSIDE THE US THAN HERE AT HOME.  I WOULD BET THAT IF YOU HAD WORKED FOR GM OR CHRYSLER YOU WOULD BE THE FIRST ONE TO SCREAM "BUY AMERICAN".  I AM NOT A UNION SUPPORTER AT ALL BUT I WOULD SURELY RATHER SAVE AN AMERICAN COMPANY AND AMERICAN JOBS THAN WATCH IT FAIL.  BESIDES WHATS A FEW BILLION HERE TO SAVE JOBS WHEN WE GIVE BILLIONS AND BILLIONS AWAY TO GOVERNMENTS THAT WANT TO SEE US ALL DEAD.  HOPE YOU FREAKING CHOKE ON YOUR TOYOTA!!!

SIGNED,

AN AMERICAN

Jul 8, 2011 8:57AM
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GM or government owned motors will never see my buisness again! Their products are low powered, cheaply built, and steeply overpriced. Not to mention i think the taxpayers of America were forced to bailout GM. I for one cant wait to see that corpration fail.
Jul 8, 2011 12:41AM
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Hey it's the least they can do since they're selling people cars where the steering wheel falls off.
Jul 8, 2011 7:45AM
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No thanks, I wouldnt drive a GM if they gave it to me.  Bunch of taxpayer money stealing union thugs!  My driveway is full of Toyotas, the company the government and GM tried to derail with false stories and dog and pony show investigations that only are disproven by NASA. 
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