GM offers free car insurance to buyers in Oregon, Washington

If you live in Oregon or Washington and are shopping for a new car this summer, General Motors has a deal that might entice you to its dealerships' doors: Free car insurance for a year.

GM will offer the car insurance, provided by MetLife Auto & Home, to those states' residents who take delivery of a new 2010-2012 Chevrolet, Buick, Cadillac, or GMC vehicle by September 6. The policy, which includes liability and physical damage, will cover the new car owner and any designated driver. And if the new GM vehicle is damaged beyond repair in the first year (or up to 15,000 miles, whichever comes first), MetLife will "repair or replace the vehicle with a new vehicle, without deducting for depreciation," says the GM press release.

GM is said to be testing the insurance incentive to boost new vehicle sales in those two states. And if it is successful, the program may be offered in other regions or possibly nationwide.

Overall sales of new GM vehicles have been positive—up 10 percent from the previous year, as we noted. But Ford and Chrysler have also made substantial in-roads (12 and 30 percent growth, respectively) against Japanese competition still struggling with the aftermath of March's disasters. (See: June car sales: American automakers post gains, Japanese still struggle.)

And Detroit's Big Three aren't likely to let up on the drive for more sales. Last week, for instance, we identified the best 4th of July American car deals. Of the 39 vehicles featured, 12 were GM-badged models. Some, such as the 2011 Chevrolet Malibu, offered a potential savings of 20 percent off the sticker price.

Check out our Best & worst cars list from Consumer Reports April 2011 which also contains information about overall car ownership costs. And for more car shopping tips, read our free online car buying guide and Top 10 tips for finding the right car insurance policy.

And let us know what you think. If you're shopping for a new car, would you want more "perks" such as free insurance for a year or would you rather see lower prices?

GM to offer free car insurance [CNN Money]
Official: GM offering free insurance with new vehicle purchase - in Oregon and Washington [AutoBlog]
Buick free insurance offer [Buick]
Cadillac free insurance offer [Cadillac]
Chevrolet free insurance offer [Cevrolet]
GMC free insurance offer [GMC]

—Paul Eng

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