Thinking about buying a new car?  Well GM is offering one year of free auto insurance with your purchase of a new car.  Before you rush to your local GM dealership, keep in mind that this new approach in only being tested in Washington and Oregon.  The goal of the program is to get new buyers into the showroom.

The G.M. insurance pilot runs until Septermber 6.  The sole intent of the program is to drive traffic to dealerships in a Pacific Northwest region where buyers are more loyal to foreign brands according to a recent CarGurus.com survey.  Unlike areas like Detroit where almost 70% purchase domestic brand vehicles, only 35% of the vehicles sold in Portland and Seattle are domestic; leaving a lot of room for growth.

According to G.M. spokesperson Tom Henderson, the west coast was chosen for the pilot partially G.M. data suggested that 23% of potential buyers lacked the financial means to acquire an insurance policy.

The insurance policies are being written through MetLife for 1 year.  After that year, individual policyholders will have to qualify for and purchase a new policy directly through MetLife.  According GM’s www.chevyinsurancebreak.com , customers may refuse the insurance, but they will not get a discount on the vehicle.

“Eligible customers will be offered replacement policies at the end of one year at a premium to be determined by MetLife but is each customer’s responsibility to obtain replacement coverage at the end of the free year.  Insurance policies written through the G.M. program will not be automatically renewed or replaced.”

This program is only available to individuals that purchase a new car from G.M. in the states of Oregon and Washington before September 9, 2011.  The policy cannot be transferred or cancelled for premium credit.  For competitive rates on your auto and home insurance, always consult with a licensed insurance agent in your state.