General Motors to offer Select New Customers Free Auto Insurance
Auto manufacturer General Motors announced this week that it will be starting a pilot program that offers car buyers one year of free auto insurance. Currently, the new incentive program, offered through MetLife Auto and Home, will only be provided to customers in the Pacific Northwest.
Customers Must Purchase New Model-Year Vehicles
In its announcement, General Motors stated customers who purchase a new 2010, 2011 or 2012 model-year vehicle from one of its dealers in Oregon and Washington will also receive a yearlong insurance policy from the manufacturer.
According to MetLife, the policy will cover the vehicle and anyone who drives it with the owner’s permission, starting on the date of purchase. The insurance will last for an entire year as long as the buyer still owns the car during that time.
G.M. noted the insurance can be bundled with other deals as well, including incentives to lower the cost of the vehicle. The insurance incentive program is set to expire on Sept. 6.
Sales Have Been Slow in the Pacific Northwest
General Motors stated that its reason for offering this unique incentive program is that auto sales have not rebound in the Pacific Northwest as they have in the Midwest and other areas. In Portland and Seattle in particular, buyers are said to be more loyal to foreign brands.
G.M. says it hopes the incentive will appeal to family households, especially those with teenagers who are beginning to drive and may have to pay higher insurance costs with a separate company. Also, the fact that a car totaled in the first year or first 15,000 miles (whichever comes first) would be repaired or replaced by MetLife without deducting for depreciation could be particularly appealing.
So far, the automaker doesn’t plan to offer the deal anywhere outside of the Pacific Northwest. However, it plans to see how it resonates with customers who take advantage of it. If it is successful, the program may be introduced nationwide.
Worst Cities for Towing Increase Costs Associated with Auto Insurance
A new survey released by the Property Casualty Insurers Association of America (PCI) revealed that five cities are worse than others when it comes to aggressive towing practices. it was also revealed that these aggressive towing practices are often associated with drivers paying more in expenses related to auto insurance.
Cities with Worst Towing Practices
According to the PCI, a number of cities are notoriously worse than others when it comes to their towing practices. The survey found that the worst cities in the nation are:
- Chicago, Ill.
- Philadelphia, Pa.
- New York, NY
- Atlanta, Ga.
- Houston, Texas
The PCI also listed the five worst states for aggressive towing, which included Illinois, Pennsylvania, New York, New Jersey and California.
Effect on Auto Insurance
Some of the issues arising from aggressive towing practices, according to the survey, include the following:
- High towing and storage charges and miscellaneous charges like “helper fees” and “wait time fees”
- Inconsistent and difficult release processes
- Lack of transparency and communication from towing companies
- Failed access to vehicle for adjustors
According to the PCI, these unsatisfactory practices by towing companies are not only causing frustration and confusion, but are also increasing out-of-pocket expenses for policy holders as well as charges for insurers, in turn affecting the auto insurance costs consumers pay.
Because the towing companies are often charging monstrous amounts for towing and storage costs (ex. an insurer’s bill for a vehicle in Iowa that was towed seven miles with no storage time was $892, according to the survey) and insurance companies sometimes foot the bill, the costs are trickling down to the policyholder.
The National Insurance Crime Bureau report that claims of inflated towing and storage bills increased by 57 percent since 2009. Unfortunately, it’s difficult to research the reputation of a towing company when in need of immediate help, which is why it’s good to conduct research ahead of time in hopes of working with a reasonable company when you need them most.
