For Everyone Worried About Gmpp Warranty's And Bankruptcy

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While researching my own GMPP warranty, I found that the much recommended www.gmoutlet.com has some information that addresses most issues and hesitations regarding purchasing a GMPP plan.

 

I will be getting a 4yr/48K mile Major Guard plan with $0 deductible for $2105.00.

 

Here is the info from GM Outlet regarding C11 and Warrantys:

 

The number one question we currently are being asked is "What happens if GM goes Bankrupt?"

 

A. GM Protection Plan is NOT owned by GM, but instead is 100% owned by GMAC Insurance.

 

-i. GMAC Insurance is a STAND ALONE Corporation that has its own separate Board of Directors and separate Cash Accounts.

 

-ii. GMAC Insurance has an EXCELLENT rating with A. M. Best Rating Service (Agency that rates insurance companies).

-iii. GMAC Insurance as all insurance companies have strict federal rules to hold significant amounts in escrow to pay your future claims.

 

B. GM will only own 10% of GMAC/GMAC Insurance as part of the US. Treasury rules granting GMAC becoming a Bank Holding Company.

 

-i. This results in very small limits of GMAC and GMAC Insurance exposure to GM's problems.

 

-ii. This resulted in GMAC Bank becoming a FDIC Insured Bank (GMAC Bank will be renamed Ally Bank soon).

 

C. GMAC Insurance who owns 100% of the GM Protection Plan is a very profitable stand alone Corporation.

 

-i. GMAC Insurance sells the GM Protection Plan – Major Guard

 

-ii. GMAC Insurance sells GMAC Insurance for Home, Boat, Motorcycle, and Car Physical Damage Insurance at very competitive prices.

 

A. GMAC Insurance is currently hiring and has over 260 available position offered online at www.gmacinsurance.com

 

B. GMAC is now US Government backed and funded by the US Treasury. In this environment (right or wrong) with the US Government backing the company, it is safe.

The chance of your vehicle breaking down unprotected without a GM Protection Plan is much greater than GMAC Insurance going away (especially after all the above changes were implemented to further protect your investment).