Talk lately in one thread has centered around how expensive insurance can be for newer small cars. GM appears to want to solve that problem. Read more here:
FoxNews article
FoxNews article
GM offers free car insurance with purchase
- Thread starter Hokiefyd
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It will be interesting to see how it plays out-
Curious to know if people will abuse it OR will the consumer see it as a gimmicky marketing trick...(that is not a real value)
Curious to know if people will abuse it OR will the consumer see it as a gimmicky marketing trick...(that is not a real value)
Some manufacturers do something like that in the U.K. don't they?
Originally Posted By: Hokiefyd
Talk lately in one thread has centered around how expensive insurance can be for newer small cars. GM appears to want to solve that problem. Read more here:
FoxNews article
But only in Oregon and Washington state, where GM sells few cars.
John
Talk lately in one thread has centered around how expensive insurance can be for newer small cars. GM appears to want to solve that problem. Read more here:
FoxNews article
But only in Oregon and Washington state, where GM sells few cars.
John
There's no such thing as "free". It will be built into the price. I can see them selling an Aveo to a 16 year old for $17K but only $15k to a 40 year old
They need to be careful about this one. In some states, ANYTHING that can be construed as "free insurance" is ILLEGAL. Although it's much more complex than a short post here can cover, Florida is one of those states.
Short version of the lesson: be wary, very wary, of "free insurance" -- often it's worse than invalid -- it's ILLEGAL.
Short version of the lesson: be wary, very wary, of "free insurance" -- often it's worse than invalid -- it's ILLEGAL.
Originally Posted By: tonycarguy
There's no such thing as "free". It will be built into the price. I can see them selling an Aveo to a 16 year old for $17K but only $15k to a 40 year old
nah gm went to the insurance company with expected sales and demographics for the vehicles. Then the insurance company ran the numbers and came out with what they would need to charge gm per vehicle to cover losses do to pay outs and make some profit.
There's no such thing as "free". It will be built into the price. I can see them selling an Aveo to a 16 year old for $17K but only $15k to a 40 year old
nah gm went to the insurance company with expected sales and demographics for the vehicles. Then the insurance company ran the numbers and came out with what they would need to charge gm per vehicle to cover losses do to pay outs and make some profit.
Quote:
I see there's no minimum standard to qualify. It seems they are marketing to the uninsurable crowd.
I see they're offering it only to Washington and Oregon. Why not Florida, Illinois, or California?
Two words: high risk.
Also why it will never be offered in MI either...
I see there's no minimum standard to qualify. It seems they are marketing to the uninsurable crowd.
I see they're offering it only to Washington and Oregon. Why not Florida, Illinois, or California?
Two words: high risk.
Also why it will never be offered in MI either...
I like it. Jeep guaranteed $2.99 gas. Hyundai guaranteed your payments if you got laid off, and will guarantee your trade in value. GM needs to invent some marketing gimmicks. Lead, follow, get out of the way, etc.
This might have the added perk for GM of easier financing... if a person had decent credit history but a terrible driving record.
Which brings up the point... if the numbers crunch for the proverbial terrible driver, what is he/she going to do after the first year?
Would it help or hinder GM to have inexpensive body panels? Whatever they lose on parts sales they'll gain back on whole car sales?
This might have the added perk for GM of easier financing... if a person had decent credit history but a terrible driving record.
Which brings up the point... if the numbers crunch for the proverbial terrible driver, what is he/she going to do after the first year?
Would it help or hinder GM to have inexpensive body panels? Whatever they lose on parts sales they'll gain back on whole car sales?
Originally Posted By: ekpolk
They need to be careful about this one. In some states, ANYTHING that can be construed as "free insurance" is ILLEGAL. Although it's much more complex than a short post here can cover, Florida is one of those states.
Short version of the lesson: be wary, very wary, of "free insurance" -- often it's worse than invalid -- it's ILLEGAL.
I am sure GM legal is well aware of all that and have the bases covered.
They need to be careful about this one. In some states, ANYTHING that can be construed as "free insurance" is ILLEGAL. Although it's much more complex than a short post here can cover, Florida is one of those states.
Short version of the lesson: be wary, very wary, of "free insurance" -- often it's worse than invalid -- it's ILLEGAL.
I am sure GM legal is well aware of all that and have the bases covered.
For a young person insurance payments can sometimes equal and approach car payments.
A great idea. I was stupid and owned a financed brand new vehicle at age 21 paying $206 payment and $140/month insurance! Previously I had a 10 year VW Jetta and paid $150/year liability.
A great idea. I was stupid and owned a financed brand new vehicle at age 21 paying $206 payment and $140/month insurance! Previously I had a 10 year VW Jetta and paid $150/year liability.
Originally Posted By: rjundi
For a young person insurance payments can sometimes equal and approach car payments.
A great idea. I was stupid and owned a financed brand new vehicle at age 21 paying $206 payment and $140/month insurance! Previously I had a 10 year VW Jetta and paid $150/year liability.
I'm paying $1300/year for insurance right now!
For a young person insurance payments can sometimes equal and approach car payments.
A great idea. I was stupid and owned a financed brand new vehicle at age 21 paying $206 payment and $140/month insurance! Previously I had a 10 year VW Jetta and paid $150/year liability.
I'm paying $1300/year for insurance right now!
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