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July 08, 2021

Would you buy a GM if a year's worth of car insurance was thrown in?

Car makers – well, North American car makers – will do anything to get you in one of their rides these days.

GM-Logo-Nov2010 You’d think, with the devastating Japan ‘quake/tsunami having crippled production from giants like Toyota and Honda, domestic manufacturers would hold all the cards – except, of course, when you remember the decades of lousy models, greed and mismanagement that kind of turned us off local vehicles in the first place.

But, wait! What about this? Would your views on buying a domestic car change if a year’s worth of auto insurance was thrown in the deal?

According to the Associated Press, that’s just what GM is offering customers in limited markets now (just Oregon and Washington states at the moment, “but the company says it may eventually be rolled out more widely,” the AP notes): a free one-year policy to customers who purchase or lease a new GM car before Sept. 6.

The incentive program applies to new 2010, 2011 or 2012 Chevy, Buick, GMC and Cadillac cars, trucks and crossovers. Coverage will be provided by MetLife for one year from the purchase date, whereupon motorists will have the option to re-up with the insurer or find new coverage of their own.

It’s an interesting enticement, to be sure, but do things change when we break the deal down, by the numbers?

Your car insurance – I know mine is – is likely a bit more, but the Insurance Information Institute reports the average auto coverage in Washington is $840 per year; only $727 in Oregon.

So we’re talking less than a grand here, which begs the question, Is that enough to sway you over a major buy like a car?

If you’re already in the market for a new GM – hey, we’re talking gravy here. Sit back and enjoy the savings. But for those that’ve been steered clear from domestic rides for whatever reason, it’d be intriguing to find if a year’s worth of free auto coverage would be enough to have you make the switch.

Would you be lured toward a GM if the auto maker covered your first year of car insurance?

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...