Free Insurance ?

In some states with the purchase of a new GM car you can get free car insurance for a year. Free you say?  Yes that is the way it is being advertised. I have to wonder if this is really a legal marketing strategy. Most states that I know of have certain marketing guidelines that prohibit this type of promotion. First and foremost insurance can't be free because of one simple thing. An insurance policy is a contract. In order to have a valid contract you have to have "consideration" which is a transfer of money. So the consumer is paying the auto insurance through the purchase of the car. I think GM 's marketing stratgegy will be looked at closely by state insurance departments. Until next time be careful out there and know your risks.  K

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