Never Look A Gift Horse. .

By Author: Norris Rios
Total Articles: 572
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In some cases, the idea of looking inside the gift horse's mouth to see how old it is and judge its health is bad manners. The generous person making the gift would be insulted if you were seen to question the value of the gift. But when you're looking at a commercial transaction, it's an idea to have the horse go through a full physical from an independent expert in veterinary science to ensure you're not buying a pig in a poke. Remember there are a lot of scam artists out there who want your money and would give you nothing in return. Checking you are about to receive what's being promised is always a good first step to protecting yourself. So have you seen the latest offer from GM? This once-great company is out to rebuild volume sales. To tempt people back into the showrooms, it's packaging insurance with the car. Yes, friends, if you live in either Oregon or Washington, you can buy one of GM's new models and get your first year's insurance without paying another cent. All you have to do is sign up for a new model before September 2011, and you can drive the car off the dealer's lot the moment the ink is dry on the sale ...
... contract. This sounds like a good deal. Is it?

The unknown is how much GM is paying for the insurance. Let's say you go into a dealership and negotiate a discount in the list price of the vehicle you want to buy. Who's to say that saving will not pay for your first year's insurance? The problem with this offer is that you have to buy at the list price or walk away. You cannot refuse the insurance cover and buy the vehicle at a discount. So, if you have a low premium rate on your current car, it may well be worth buying a different new car and staying loyal to that insurer. But, if you are unlucky enough to be a member of a high-risk group, e.g. you have a conviction for driving while intoxicated, this promotion could be good value for you. Let's assume you still hold a valid license. Instead of being forced to pay the top rates, you get insurance without question. GM guarantees you will be insured when you drive away no matter what your claims record or risk profile. This is not to say the insurer will continue covering you should there be an extravagant claim or claims. But, if you can afford to buy new, you will at least start off with cover.

GM also claims this will reduce the number of uninsured drivers on our roads. This is not real. If people can afford to buy new, they can afford the insurance. The majority of the uninsured are from low-income families who usually buy secondhand. Putting all this together, this could be a good offer for everyone currently paying high car insurance rates. Check out the list prices and see whether you can get discounts that would cover the premiums. If not, buying a new car through this program will save money on your cover. At the end of the year, hopefully with no claims, get multiple car insurance quotes. Hopefully, they will be more affordable.