Reclassification Of Four-Wheel Drive SUVs Reduces GM Protection Plan Costs
Southfield, Mich. - The GMAC Insurance MIC Group announced the reclassification of 11 four-wheel drive (4WD) sport utility vehicles (SUVs) to the same level as their respective two-wheel drive (2WD) models. This was effective for all GM Protection Plan contracts sold on or after March 1, 2004, in all states except Florida and Mississippi, where regulatory approval was received in April.
The reclassification significantly reduced the pricing on GM Protection Plan contracts for these 4WD vehicles: the Chevrolet Avalanche, Blazer, Tahoe, TrailBlazer/TrailBlazer XT and Suburban; and the GMC Envoy/Envoy XL, Envoy XUV, Jimmy, Yukon, Yukon XL and Suburban.
Following the reclassification, the average dealer cost on the most popular GM Protection Plan contract - a 60-month/75,000-mile Major Guard Plan with a $0 deductible - dropped by as much as $270, a 24% reduction, for these vehicles.
According to John Gressa, director of GM Protection Plan marketing and product development, MIC made the changes based on an in-depth analysis of warranty and service contract loss experience data. The study revealed that the loss experience on 4WD SUVs is performing at a level similar to their 2WD counterparts.
"MIC's access to GM warranty data - on top of our 30 years of claim experience and strong underwriting discipline - allowed us to demonstrate favorable trends in warranty and post-warranty loss experience that made these changes possible," explained Gressa. "These and other enhancements introduced over the last six months make the GM Protection Plan all the more attractive to dealers."
GM dealers can contact their GMAC representative for more information.