Agents Concerned by GM “Free Insurance” Pilot Program
Some car insurance agents are concerned with GM's "free insurance" pilot program. John Timm, president of the Independent Agents and Brokers of Oregon says “There are a lot of unknowns; it's a very vague offer. It's doubtful that consumers will be well served.” MetLife indicates that they're sticking with the promotion, and they see it as a way to increase not only their own brand recognition but gain new customers as well.
Free Car Insurance Comparison
Secured with SHA-256 Encryption
UPDATED: Jul 2, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance related. We update our site regularly, and all content is reviewed by car insurance experts.
Buy a new GM car or truck, get a free year of full coverage insurance. (image by Chevrolet.com)
Earlier this week, we reported on the General Motors promotion currently running in the Pacific northwest states of Oregon and Washington that provides buyers of any new 2010, 2011 or 2012 GM brand (Chevrolet, Buick, GMC and Cadillac) car, truck or crossover a year of included full coverage insurance from MetLife. Now there is a firestorm of controversy brewing with independent insurance agents over the program.
Bob Rusbuldt, President and CEO of the Independent Insurance Agents & Brokers of America (IIABA) said “We have raised licensing and regulatory concerns, along with important consumer issues.”
Part of the issue lies in how MetLife auto insurance has been traditionally sold – through independent insurance agents. The insurance is also being provided without concern for traditional underwriting criteria – meaning the only requirements to obtain the insurance is to have a valid driver’s license and the purchase of a new General Motors automobile. Things such as driving record, age, sex and other rating factors that are normally used to quote policies are not relevant to obtain the MetLife insurance policy.
John Timm, president of the Independent Agents and Brokers of Oregon says “There are a lot of unknowns; it’s a very vague offer. It’s doubtful that consumers will be well served.”
MetLife indicates that they’re sticking with the promotion, and that they see it as a way to increase not only their own brand recognition and gain new customers. They believe that independent agents will benefit as well, since they’ll assign customers to such agents if they continue to use MetLife after the free year of insurance ends.
What Does This Mean for Car Insurance Going Forward?
In the end, the GM offer really isn’t about car insurance, but rather to sell more cars and trucks. The cost of the insurance policy is paid out of General Motors’ marketing budget, rather than simply being added to the price of the car. The program was given approval by insurance regulators in both states before being launched, and we highly suspect it won’t have a material impact on independent insurance agents.
While customers get temporary relief from their auto insurance premium, GM only provides a set amount of basic insurance. If you want more coverage, extra benefits, or other add-ons, you’ll need to pay extra. Likewise, if you cancel your existing policy, you may lose loyalty and other discounts on your insurance coverage when the free coverage expires.
Deals like this are generally short-term and limited to certain areas. If you took advantage of free insurance with a new GM or kept your own, let us know about your experience. Leave your reviews on insurance carriers you’ve used. If you’ve been considering a new insurance policy, put your zip code into our quote calculator and get quote for affordable auto insurance in your area.