Earlier this week, GM announced that they would offer free auto insurance for new-car buyers in Oregon and Washington. The program is good for new 2010, 11 o12 Chevy, Buick, GMC and Cadillac through MetLife. "We want to give residents of Oregon and Washington another reason to discover Chevrolet, Buick, GMC and Cadillac vehicles," GM vice president of Marketing said in the statement. The insurance would cover the vehicle and anyone who drives it with the owner's permission for one year -- so long as the original owner still owns it.
But what if you've got a DUI? That means (way) higher insurance and will probably exclude you from participating, right? Nope! At least, not according to our own Jessica Caldwell, director of pricing and analysis who tweeted this yesterday, "Heard from architect of GM free insurance program: “You just need a valid drivers license.. you can have 3 DUIs and qualify"
Uhm....good news?
**Update: It should be noted that in Oregon, a third DUI (looking back 10 years) will result in a permanent license suspension with an application to renew after 10 years of suspension. A second will have you out of a license for up to three years. In Washington the lookback period is 7 years and a 3rd drunk driving conviction will get you a three year license suspension (4 if your BAC is over .15), a fine, an ignition interlock system and you'll be required to carry SR22 proof of financial responsibility insurance. Oh, and there's jail time for both states.**
**Update 2: GM has contacted us to offer an official comment on this matter. Statement from Tom Henderson, GM Spokesman after the jump. **
"I'm Tom Henderson, a spokesman for General Motors and think it's important to add our two cents to this story, since it is founded on information provided by a misinformed source.
GM has long been an advocate of safe, responsible driving. To suggest in any way that we would support putting unsafe drivers on the road is irresponsible and frankly, untrue.
To be clear, people who don't have a valid driver's license are not eligible for this program.
GM and its dealers are not in the business of determining who is eligible to have a driver's license and take to the road. That is the responsibility of each state. In fact, in Oregon or Washington and most other states, a person convicted of driving under the influence of intoxicants would have their license suspended, making them ineligible for the program. Multiple offenses would likely result in a lengthy suspension lasting for years, or a permanent revocation of their license.
GM is in the business of selling vehicles and our aim is to provide value to customers seeking transportation. Offering a standard feature, such as insurance for a year, is just one way of building value in the eyes of customers."
kain77 says:
08:10 AM, 07/13/11
I know this analogy borders on hyperbole, but to me it would be like a school district hard up for teachers handing out jobs... even to registered sex offenders.
gotak says:
08:26 AM, 07/13/11
Why can't GM simply build better cars with their money instead of putting assholes on the road?
silverstang1 says:
09:02 AM, 07/13/11
^ 2 very valid points
stovt001 says:
10:48 AM, 07/13/11
My only comfort is that this seems to be a pilot program in 2 states that I don't reside in nor will I be visiting soon. If we're lucky, the inevitable problems will be apparent, recognized, and this whole thing will die out.
bodyblue says:
10:59 AM, 07/13/11
Wonderful.....US taxpayer money going to insure un-insurable drunks. If somebody gets killed they will sue GM and then they creeps at GM will stick their paws out to the taxpayer again to help them. The more I read about the "new" GM the more disgusted I get.....I had no idea that was even possible.
stovt001 says:
11:35 AM, 07/13/11
Seriously how hard is it to say you must have a clean driving record, maybe a very low number of points for minor driving offenses. They attach credit rating conditions on 0% APR offers. Why should this be any different?
teampenske3 says:
11:51 AM, 07/13/11
@ Stovt
Agreed. How hard can it be?
The stupidity here is appalling. How can a company that won Le Mans this year be so dumb at the same time???
rr811 says:
11:55 AM, 07/13/11
Great idea, bad execution
jaeger1 says:
11:55 AM, 07/13/11
GM clearly has their corporate head up their corporate #$$.
hybris says:
12:25 PM, 07/13/11
What in name of god is GM thinking?! How is this suppose to rebuild their reputation? How is this supposed to make me switch from Ford to GM?
hfv6 says:
12:58 PM, 07/13/11
Why would anyone with 3 DUis still have a license? They wouldnt. if you dont have a license you can't get the insurance or the car. I don't see the problem. Next post will say GM will allow any 12 year old with a valid license to participate. Oh no! They are allowing 12 year olds to drive!!! How can they be so stupid????? It's insanity! They're going bankrupt again!!! LOL.
kain77 says:
01:10 PM, 07/13/11
@hfv6
In WA state, you can apply for an IIL even if your license is revoked for DUI. In Oregon, you can petition the court for reinstatement after your 3rd conviction.
Regardless, even if there wasn't a single person in either state with 3 DUIs and a valid license, it's still a stupid PR move.
hfv6 says:
01:30 PM, 07/13/11
I didnt realize they were running ads saying "please apply if you have DUIs". This seems like a news item created by asking a specific question with the intent of creating news. This was a non issue until someone from IL came up with this scenario.
When you go to buy a car normally I was unaware that they ask you if you have DUIs on your record. Never had that asked before. If you're qualified to buy a car typically you are qualified to get insurance. In fact, you can't take the car without some proof of insurance. I don't see the scandal.
hfv6 says:
01:31 PM, 07/13/11
so the story is that GM is opening the incentive to anyone who would be able to buy a car and get insurance anyway? SHOCKING indeed! Akerson should resign immediately!
teampenske3 says:
02:06 PM, 07/13/11
I don't know what the DUI laws are in each state, but it seems to me that if the guy at GM said, "You just need a valid drivers license.. you can have 3 DUIs and qualify," then said GM employee is either:
A) High
B) A sincere idiot who has no idea what he's saying
C) A sincere idiot who is speaking the truth
I don't think this is GM's fault per se, more like the fault of the lunkhead who came up with this idea. But I'm sure top management had to give it the green light, so they do deserve some blame if what this guy says is true.
hfv6 says:
02:23 PM, 07/13/11
Here is a crazy thought. Eligibility to apply doesn't guarantee you get a car. I know its INSANE but perhaps they are saying a dui doesn't automatically mean you don't qualify for the program. The insurance company ultimately has to approve any driver. If you folks are claiming a dui should preclude you from ever having car insurance again for the rest of your life than say so. Gm ain't an insurance company last I checked so they don't accept or reject drivers for coverage.
Anyway, back to the gripe session
yellowperil says:
02:40 PM, 07/13/11
hfv6 says:
12:58 PM, 07/13/11
"Why would anyone with 3 DUis still have a license? They wouldnt. if you dont have a license you can't get the insurance or the car. I don't see the problem. Next post will say GM will allow any 12 year old with a valid license to participate. Oh no! They are allowing 12 year olds to drive!!! How can they be so stupid????? It's insanity! They're going bankrupt again!!! LOL."
--Because it's GM.
People set moving goalposts when it comes to GM.
yellowperil says:
02:41 PM, 07/13/11
POINTY ELBOWS!!
hfv6 says:
05:45 PM, 07/13/11
"People set moving goalposts when it comes to GM."
So I see.
Next headline "GM sells Zr1s to rich people without checking to see if they have poor driving records!" The audacity!
zeniff says:
06:18 AM, 07/14/11
I'm with the defenders here. In order to drive the car off the lot, you must have proof of insurance. This story is very similar to those political ads that misconstrue reality: "He voted to taser 8-year olds!" or something like that.
As for its use in Oregon...well if you can get drive a Chevy with DUIs, then everyone at ODOT can now drive. They've gotta be perpetually drunk, the way they make their roads.
zeniff says:
06:41 AM, 07/14/11
One more thing....if you've got a driver's license, then you can get insurance. Even the people who are high-risk can get insurance. For those who are considered high-risk and are declined by every insurer, the state pools that high-risk group together, and then mandates that each insurance carrier accept a certain number of them (depending on their market share). So if Allstate had 25% of the auto insurance market, the state would require them to insure 25% of these 'non-insurable' folks.
I guess the bigger question is, what is someone with this many DUI's doing with a license? That's a question for the particular state, not for Chevrolet.
bodyblue says:
07:05 AM, 07/14/11
"In fact, you can't take the car without some proof of insurance. I don't see the scandal. "
Hmmmmmm bimmerjay had an interesting point in another thread and now I believe him.
bodyblue says:
07:30 AM, 07/14/11
"People set moving goalposts when it comes to GM."
With good reason....they had the "goalposts" moved for them by the US government. Did it matter that thousands of GM bondholders got totally screwed? Not to GM.....What about the money STILL owed to the US Taxpayer that will never get repaid? Why should GM catch even one more break when they are pandering to the Chinese and running stupid events like the one above? They should be made to get the financing on the open market (like Chrysler) to pay back the debt.....but they wont be made too because the UAW has a puppet in the White House. There are people on here with the stones to defend this revolting company and that is incredible to me.
hfv6 says:
07:50 AM, 07/14/11
revolting? LOL! It must be crazy to have your blood pressure rise everytimg a chevy rolls by. Does the sight of the logo alone make you want to jump in front of a train or off a bridge? It is indeed "revolting" that GM will sell a car to anyone with a license. HORRIBLE! Because we all know other brands screen potential buyers for DUIs before letting them drive off the lot.
rexall says:
08:59 AM, 07/14/11
Stellar job Government Motors! Wonder what the liability is if one of your "insured drivers" kills another motorist or bystander. Fear not, the taxpaying public will pick up the tab.
hfv6 says:
11:14 AM, 07/14/11
so is the clarification basically saying this was a made up scenario because you in fact wont even have a license after 3 DUIs? That's what I'm reading. So an accusation is being made based on a scenario that won't even exist in either state- it's hard to criticize the competence of others when you can't get the facts straight.
rexall:
You might want to check out the clarification recently added.
stovt001 says:
11:28 AM, 07/14/11
It was still stupid to explicitly say you could have 3 DUIs and qualify. Even if it is a technically impossible scenario, you don't call attention to it.
bodyblue says:
11:34 AM, 07/14/11
". Does the sight of the logo alone make you want to jump in front of a train or off a bridge?"
Not really, but this thread did one good thing.....it brought out your real identity, 1487. You are just incapable of playing it cool. You have to defend the company that means so much to you. It was really too easy to draw you out.
hfv6 says:
01:07 PM, 07/14/11
Actually, dont know anyone named "1487" but you seem to be quite fond of him or her. What did they do to you exactly? Why do you keep talking about this person so much?
hfv6 says:
05:55 PM, 07/14/11
So this was a nonstory from the beginning? After all the piling on from folks it turns out this was essentially made up? And I thought internet stories were always rock solid! Does anyone get docked pay for this kind of screw up?
bmwnwebie747 says:
04:11 AM, 07/15/11
Ignorance is like playing that old school game of telephone when you are like 8 years old...
one person says that if a driver kills someone, GM will have to pay the lawsuit, and it turns into a bail out rant...
breaking news....the whole point of car insurance, is so that the company insuring the car pays the claim..it transfers the financial burden of a claim from the driver to the insurance company.......GM is not the insurance company, MetLife is...MetLife is sticking thier neck out and taking a chance here, not GM....GM is simpy paying metlife for 1 year of insurance..no differant that if GM gave you free roadside for a year, handed you a free navigation system for a year...its a gift...they are not acting like your parent who let you take thier car out to happy hour and have too many beers for cripes sakes....
When you buy a car and drive off the lot, the dealership nor the company, GM, Honda, you name it..is responsible for what you do with the car. You own it now, not the dealer or GM...
Thats like saying the cereal company is responsible for you letting your kids have 4 bowls of fruit loops for breakfast and they are hyper all day.....
isend2c says:
12:27 AM, 07/16/11
Edmunds added in the "can have DUI" thing, it's not something that GM is bragging about. I think that this is a WONDERFUL idea. Insurance on a brand new car is typically much more expensive than a 4-year old one. It's only for a year. Plus, Hyundai took all the other good ideas for promoting car sales (assurance: return car if job lost, guaranteed trade-in value)
herosbug says:
07:38 AM, 07/18/11
I think the issue was clarified by Tom Henderson to certain degree. Still not right to offer that deal at expenses of the taxpayers. I understand if GM payoff the complete bailout then to produce such a program but they[GM] have not. I owned two Chevy's and still support their business but shame on you as an American Company not thinking what could be your Achilles weakness into the future for not thinking AMERICAN.