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Agents Express Concerns Over MetLife-GM Deal

Independent insurance agents are expressing concerns over MetLife Auto & Home's deal with General Motors to include auto insurance with the purchase or lease of...
July 19, 2011

Independent insurance agents are expressing concerns over MetLife Auto & Home's deal with General Motors to include auto insurance with the purchase or lease of a new GM vehicle.

"At this point they are in a totally unfair competitive position because now the cost of an entire [insurance] package has just been reduced by the cost of insurance GM is paying on the car they sold. I don't tend to overreact to these kinds of things partly because it can look really self-serving to object to creative ways to save consumers money. However, this has enough adverse potential to real world clients, that I don't think agents' associations would be wrong in censuring Met if they don't have satisfactory responses to both your questions and mine."
--Jeff Ogard of EHL Insurance in Poulsbo, Sequim and Port Angeles, WA

"The best way to handle General Motors offer is to go to other car makers and encourage them to say 'we won't force you to be insured with MetLife. We will just knock $700 off and you can buy insurance anywhere you want.'"
-- Don Hinman, Mid-Valley Insurance, of Yakima, WA

"They're taking 'all comers' regardless of their driving records. I know in Michigan, we have, as I assume other states do, eligibility requirements that must be met. This issue is huge to our membership!  What's next?  If you buy a Whirlpool appliance, are they going to give you free Homeowners?"
--Jon Spalding, Spalding Insurance, Perry MI

Meanwhile, Jose Ortiz-Garcia, PIA National Director from Puerto Rico, reports that a similar program is being offered there by Mercedes-Benz and the carrier MAPFRE Puerto Rico.