OAIN: Insurance Agents Say GM/MetLife Deal Leaves Buyers Uninformed

    RANCHO CUCAMONGA, CA, July 20, 2011 /24-7PressRelease/ -- Consumers aren't getting the expert coverage advice they need through a sales campaign that offers free annual policies to new General Motors vehicle buyers in Washington and Oregon, an association of independent agents announced Tuesday.

That could spell trouble for car shoppers who have existing policies with cheap insurance companies and other providers, according to the Professional Insurance Agents Western Alliance.

"Not having an independent agent on the auto lot to give people insurance advice is" a problem, the alliance said in a news release.

Under the trial offer introduced earlier this month, Washington and Oregon residents who drive home new GM vehicles are automatically covered for a year under policies from MetLife Auto & Home.

The insurer has said it is not reviewing driver records or other information that is generally taken into account before a policy is approved.

Clark Sitzes, executive vice president of the alliance, said consumers should have a chance to consult with their agent before agreeing to any deal.

"The independent insurance agent tries to protect consumers," alliance officials said. "The consumer can't be protected if they don't call."

Sitzes said an independent Oregon agent who belongs to the alliance was recently contacted by a customer who was interested in the GM/MetLife promotion but was unsure whether she had to accept free coverage.

The woman has an auto and homeowner policy with another provider and taking the MetLife offer could have lost her a discount for insuring multiple items.

The agent advised his client not to take the free policy.

"Most consumers have very little insurance education," the alliance said. Accepting a free policy "could actually end up costing them money."

Sitzes and other agent representatives have voiced a number of concerns about the GM/Metlife promotion, including how it will affect buyers who have multiple cars and their houses covered by existing policies and how it would apply to consumers driving rental vehicles.

GM and MetLife officials have said that they may introduce the free policy offer--which expires after Sept. 5--regionally if it proves successful enough in Oregon and Washington.

Policies provided as part of the incentive include both physical damage and liability coverage and exceed requirements in both states by as much as 500 percent.

Source: http://www.dol.wa.gov/driverslicense/insurance.html

To read more about this and other car coverage issues, go to http://www.onlineautoinsurance.com/cheap/companies/, where you will find informative resource pages and a free-to-use quote-comparison generator.

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