Free Insurance on new vehicles has been available in the UK market for the past ten years (with a great deal of success). Mr Wallach “the inventor” didn’t have to look too far for his invention. If being 1st to lauch in the market carries the title “inventor” I’m sure there are one or two former UK car executives (myself included) that might lay claim to that “parcel of land”.
“The insurance was given with every new Golf, New Beetle and New Beetle Convertible purchased or leased in Illinois and Wisconsin from January 4 through March 31, 2005.
…
Creative Innovators’ forecast that the incentive would attract a wide
range of buyers — not just young, high-risk males — was borne out.”
Hmm a safe assumption given the cars offered. Try making the same offer on a Honda Civic. Let’s see if the same results happen.
I do not understand how this is legal. As I understand the State insurance laws, it is unlawful for incentatives to be given for the purchase of insurance. Why is it legal for an automobile company to pay for an individuals auto insurance?
I though insurance agents were, at least, “one rung” above car salesmen. Not anymore. Have they been elevated or have we been degraded? Hey, we are all in this together: Banks, Car Salesmen, Insurance Agents, Investment Firms, did I omit any other profession from the insurance sales arena? I’m sure there are more… How about REALTOR’s offering FREE HOMEOWNERS INSURANCE with the purchase of a new home from Century 21? I wan’t to be the one that pattent’s that slik sales scheme. We are all one big happy family with the consumer’s protection as our primary concern. Will the VW salesman be licensed and capable of discussing coverages? Eg: “Do you want that UM Stacked or Non-Stacked? Choose Stacked and we’ll through in some “FREE” matts”.
My insurance license makes it illegal for me to sell “FREE” insurance. I belive it’s called “sliding”. It would appear that my insurance license puts me at a competitive disadvantage. Hell, I’ve got to be careful if I take a plate of cookies to a referral source. I don’t want to be charged with REBATING or SHARING OF COMMISSIONS WITH THE UNLICENSED.
Alas, this will never happen in my Great State, Florida. My commissioner would never allow insurance to be sold by the unlicensed. Wait a minute, I just lost a work comp account to an unlicensed PayChex payroll service rep and unlicensed PEO salesmen sell work comp like hot cakes in Florida… OOOPS!
Anyway, I’m in the market for a new car, and am always interested in saving money on my insurance. How competitively priced is that VW auto insurance? OH YEA, IT’S FREE! Great, I’m calling my Auto/Insurance Dealer/Agent to take a test drive.
Is anything free? This is an interesting debate: buy a car; get the insurance free. Has anyone who posted read the contract?
Is the insurance really free or just worked into the sales contract. I know, it’s in the tiny print. Generic insurance, rates are based on your ability to afford this deal.
It is an interesting concept. But how free is it? If the potential car buyer shopped around, coud he/she save money on his/her insurance, or is this just a sign of our times where less to worry about is more. Sign the car contract and one does not have to worry about insurance. Sounds convenient, but free, I doubt it.
How gullible are the american public? Put the word “free” on it and people come a running. The auto industry came up with a new twist and that was instead of “giving” a $2000 rebate on a $22000 car, which the public finely figured out that it was a $20000 car to begin with, ther now going to sell you that $20000 car for $22000 and say its free insurance!! HOW IGNORANT ARE THE MARKETING PEOPLE WHO CAME UP WITH THIS OR BETTER YET HOW IGNORANT ARE THE PEOPLE WHO ACTUALLY BELIEVE IT!!
Unfortunately, a large part of the population is ignorant. That’s why the goverment regulates many products and services, to protect the “ignorant” public.
If I sell “FREE” MORTGAGE LIFE INSURANCE with each homeowners insurance policy I sell, as a licensed professional… I’M DISCIEVING THE PUBLIC AND BREAKING THE LAW.
Why is this sales “SCHEME” leagal for an AUTO DEALER to promote?
What is good for the goose, should be good for the gander, or, if the goose’s neck is on the “regulatory chopping block”, so should the gander.
Sounds like a lot of you are worried about lost business.
First off, to the guy going off on stacking UM, I doubt there’s any options to the insurance, and any additional coverages and options would have to be purchased separately.
Secondly, have you noticed which cars this incentive is offered on? Cars which, intuitively at least, would be driven by conservative drivers. They are also low key cars. So the majority of drivers will still come to your offices to get their insurance.
Thirdly, relax, the world isn’t fair. Deal with it.
With the track record this company has in NY I wouldn’t worry too much. They are in and out of the market (either underwriting or rates or both) on a regular basis so once again they do not provide a stable market. In deference to their slogan, they are not always on your side.
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Free Insurance on new vehicles has been available in the UK market for the past ten years (with a great deal of success). Mr Wallach “the inventor” didn’t have to look too far for his invention. If being 1st to lauch in the market carries the title “inventor” I’m sure there are one or two former UK car executives (myself included) that might lay claim to that “parcel of land”.
Quote from Article:
“The insurance was given with every new Golf, New Beetle and New Beetle Convertible purchased or leased in Illinois and Wisconsin from January 4 through March 31, 2005.
…
Creative Innovators’ forecast that the incentive would attract a wide
range of buyers — not just young, high-risk males — was borne out.”
Hmm a safe assumption given the cars offered. Try making the same offer on a Honda Civic. Let’s see if the same results happen.
I do not understand how this is legal. As I understand the State insurance laws, it is unlawful for incentatives to be given for the purchase of insurance. Why is it legal for an automobile company to pay for an individuals auto insurance?
As I understand it, this is just like your mom or dad paying your insurance for you. The incentive isnt to buy the insurance, its to buy the car…
I though insurance agents were, at least, “one rung” above car salesmen. Not anymore. Have they been elevated or have we been degraded? Hey, we are all in this together: Banks, Car Salesmen, Insurance Agents, Investment Firms, did I omit any other profession from the insurance sales arena? I’m sure there are more… How about REALTOR’s offering FREE HOMEOWNERS INSURANCE with the purchase of a new home from Century 21? I wan’t to be the one that pattent’s that slik sales scheme. We are all one big happy family with the consumer’s protection as our primary concern. Will the VW salesman be licensed and capable of discussing coverages? Eg: “Do you want that UM Stacked or Non-Stacked? Choose Stacked and we’ll through in some “FREE” matts”.
My insurance license makes it illegal for me to sell “FREE” insurance. I belive it’s called “sliding”. It would appear that my insurance license puts me at a competitive disadvantage. Hell, I’ve got to be careful if I take a plate of cookies to a referral source. I don’t want to be charged with REBATING or SHARING OF COMMISSIONS WITH THE UNLICENSED.
Alas, this will never happen in my Great State, Florida. My commissioner would never allow insurance to be sold by the unlicensed. Wait a minute, I just lost a work comp account to an unlicensed PayChex payroll service rep and unlicensed PEO salesmen sell work comp like hot cakes in Florida… OOOPS!
Anyway, I’m in the market for a new car, and am always interested in saving money on my insurance. How competitively priced is that VW auto insurance? OH YEA, IT’S FREE! Great, I’m calling my Auto/Insurance Dealer/Agent to take a test drive.
Is anything free? This is an interesting debate: buy a car; get the insurance free. Has anyone who posted read the contract?
Is the insurance really free or just worked into the sales contract. I know, it’s in the tiny print. Generic insurance, rates are based on your ability to afford this deal.
It is an interesting concept. But how free is it? If the potential car buyer shopped around, coud he/she save money on his/her insurance, or is this just a sign of our times where less to worry about is more. Sign the car contract and one does not have to worry about insurance. Sounds convenient, but free, I doubt it.
How gullible are the american public? Put the word “free” on it and people come a running. The auto industry came up with a new twist and that was instead of “giving” a $2000 rebate on a $22000 car, which the public finely figured out that it was a $20000 car to begin with, ther now going to sell you that $20000 car for $22000 and say its free insurance!! HOW IGNORANT ARE THE MARKETING PEOPLE WHO CAME UP WITH THIS OR BETTER YET HOW IGNORANT ARE THE PEOPLE WHO ACTUALLY BELIEVE IT!!
Unfortunately, a large part of the population is ignorant. That’s why the goverment regulates many products and services, to protect the “ignorant” public.
If I sell “FREE” MORTGAGE LIFE INSURANCE with each homeowners insurance policy I sell, as a licensed professional… I’M DISCIEVING THE PUBLIC AND BREAKING THE LAW.
Why is this sales “SCHEME” leagal for an AUTO DEALER to promote?
What is good for the goose, should be good for the gander, or, if the goose’s neck is on the “regulatory chopping block”, so should the gander.
Sounds like a lot of you are worried about lost business.
First off, to the guy going off on stacking UM, I doubt there’s any options to the insurance, and any additional coverages and options would have to be purchased separately.
Secondly, have you noticed which cars this incentive is offered on? Cars which, intuitively at least, would be driven by conservative drivers. They are also low key cars. So the majority of drivers will still come to your offices to get their insurance.
Thirdly, relax, the world isn’t fair. Deal with it.
With the track record this company has in NY I wouldn’t worry too much. They are in and out of the market (either underwriting or rates or both) on a regular basis so once again they do not provide a stable market. In deference to their slogan, they are not always on your side.