Interesting idea I read in today's Oakland Press editorial section;

www.theoaklandpress.com
By David Kniffen
1/31/06

Carmakers Should Offer Low-Cost Insurance

General Motors, Ford and Daimler-Chrysler are facing declining
sales year after year.  Cutbacks, layoffs and the possibility of
bankruptcy are now part of the current uncertainty of the industry
and the Motor City.

How can the Big Three regain their market share?  Why are sales
down?  Consider how much it costs to drive a new car:

I lease a 2004 Jeep Grand Cherokee.  It was zero down, $320
a month for 39 months, $3,850 per year.  I'm a 26-year-old single
male, with a few traffic tickets, no accidents, yet my 12-month
insurance policy for my Jeep is $3,000.

Insurance makes up one-third of my driving cost, and it's nearly
as much as my lease payment!

This isn't just my problem.  Here are some quotes from Progressive
Auto Insurance's Web site for a 26-year-old male with a perfect
driving record: 2006 Chevy Impala LT, $2,495.64 per year; 2006
Dodge Ram 1500 Quad Cab ST/SLT, $2,681.64; 2006 Ford
Focus ZX4 ST, $2,961.71.

And these were the lowest out of the three competitor's quotes
they provided.

The solution for the Big Three is to provide their own coverage
for their customers.  They should entice buyers with a low-cost
insurance directly from the showroom floor.

The highest portion of insurance coverage is the comprehensive
and collision.  Since carmakers can make their own replacement
parts, offering insurance would cut out the middleman, adding to
the savings.

By cutting premiums, more people would consider getting a new
vehicle, rather than used, and the thought of an all-inclusive low
payment, would sway the foreign car buyers back to domestic
autos.

Since the Big Three all offer their own internal financing, adding
insurance should be possible.