GM Will Insure Loaner Vehicles for Ignition-Switch Recall

By | March 24, 2014


It didn’t take prolonged following GM explained it would furnish loaner autos for owners of the one.six million recalled little vehicles — one.37 million of them in the U.S. — with faulty ignition switches that we wondered regardless of whether the automaker would insure all individuals drivers. It truly is a significant need to have: GM CEO Mary Barra told reporters Tuesday that the automaker may not have adequate replacement components for all 1.6 million autos until finally October. That means some owners might have to wait much more than six months before repairs are created.

More on GM’s Ignition-Switch Recall

If you opt for the loaner, that is a good deal of time behind the wheel to be underinsured. Remember, a common collision policy on your personal vehicle insurance coverage policy only covers up to the worth of your personal auto, which puts you at a greater chance in a loaner motor vehicle. “Even if the owners of recalled GM vehicles have collision insurance coverage, coverage is generally limited to the value of their personal autos,” Des Toups, managing editor at, informed us. “That is, if you drive a Cobalt really worth $ 7,000 and the dealer lends you a new Cruze worth $ 18,000, your collision coverage would only pay the value of the Cobalt.”

GM’s answer? It will cover the additional insurance.

“We will cover further fees/insurance coverage for beneath-insured drivers,” GM spokesman Jim Cain wrote in an e-mail to The automaker will also cover the extra insurance fees for drivers younger than 25, Cain explained, even though it could call for mother or father or guardian approval in some states.

The Detroit News reports GM is tapping Avis, Hertz and Enterprise to fill loaner requirements during the recall. Many credit score cards contain complementary insurance for rental cars, but only if you pay for the rental on said card. It is unclear what happens if you only place down a refundable credit card deposit. That’s what two Chevrolet dealerships we referred to as said owners of recalled automobiles who wished a loaner would want to do.

Fortunately, that could be a moot point.

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