GM Will Insure Loaner Cars for Ignition-Switch Recall


It didn't take long after GM said it would furnish loaner cars for owners of the 1.6 million recalled small cars — 1.37 million of them in the U.S. — with faulty ignition switches that we wondered whether the automaker would insure all those drivers. It's a significant need: GM CEO Mary Barra told reporters Tuesday that the automaker may not have enough replacement parts for all 1.6 million cars until October. That means some owners may have to wait more than six months before repairs are made.

More on GM's Ignition-Switch Recall

If you opt for the loaner, that's a lot of time behind the wheel to be underinsured. Remember, a typical collision policy on your personal car insurance policy only covers up to the value of your own car, which puts you at a higher risk in a loaner vehicle. "Even if the owners of recalled GM cars have collision insurance, coverage is typically limited to the value of their own cars," Des Toups, managing editor at, told us. "That is, if you drive a Cobalt 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 solution? It will cover the extra insurance.

"We will cover additional costs/insurance for under-insured drivers," GM spokesman Jim Cain wrote in an email to The automaker will also cover the extra insurance fees for drivers younger than 25, Cain said, though it may require parent or guardian approval in some states.

The Detroit News reports GM is tapping Avis, Hertz and Enterprise to fill loaner needs during the recall. Many credit cards include complementary insurance for rental cars, but only if you pay for the rental on said card. It's unclear what happens if you only put down a refundable credit card deposit. That's what two Chevrolet dealerships we called said owners of recalled vehicles who wanted a loaner would need to do.

Fortunately, that could be a moot point.

David McNew/Getty Images News/Thinkstock



As I understand it, this ignition problem only really occurs when the ignition has been slowly damaged by an excessively heavy key chain over a long period of time. Do I understand this correctly?

If so, should GM be held 100% responsible? People put all kinds of crap on their keychains that shouldn't be there, hanging from your ignition.

I ask because I drive a Chevy that’s being recalled. I've never had any issues with my ignition (2012 chevy cobalt)... in fact, it's the smoothest car I've ever been in. I love it. It's cheap to fill up (thanks gasbuddy), cheap to maintain/repair, only 25/month to insure (thanks 4AutoInsuranceQuote)​, and looks beautiful. I'll take it in for the re-call, but I don't think this is a big issue.

There is always the option of adding a quick release to your keys to detach the car keys. I'd bet that there's even a warning about this in the user's manual. What amount of user misuse should a manufacturer be responsible to account for? Every mechanical component will eventually wear out, but will ear out faster with poor user decisions like this. To what length of time or miles should a manufacturer be held accountable for their parts to hold up, especially under misuse?

Get real katy

Yeah Katy, those people that died should have known better than to attach anything to their key ring, other than their GM key.

The fault clearly lies on them. :/


I have a 2007 Pontiac G5. I have the ignition key, the fob and one office key on my key chain. Not excessive at all. I lost power twice.


Definitely not a fault of the consumer. Yes, excessive weight will break down ANYTHING over time, but a key ring exists because people need an easy way to carry multiple small, easily lost, and very important items. I've only ever driven with the fob and my car key and my ignition fails to release the key, which in turn causes a short with the battery, which means I have to take it in about every 2 months to get the battery reset. The ignition-switch has been a HUGE problem for YEARS.

Debra Davis

I have a 2006 chevy malbi my switch has not work in a year its been giving me a lot off problem it's at chevy company

Debra Davis

Its has stop all up an down the road an street That's so sad the door lock the window lock an I need to no what to do about it

Elizabeth Blocker

I am the owner of a 2007 Cobalt and have only the key ring that the key came on when I purchased the vehicle brand new from whats the excuse or reasoning for mine to have the issue just last night of not being able to turn my car all the way off and they key be stuck in the ignition???? Signed, No Heavy Keyrings Here in Ohio!!!!!


Katy sounds crazy


Katy, you obviously don't know what you're talking about because Chevy stopped making the cobalt in 2010.........


I have a 2005 Chevy Cobalt which I bought new. I attempted to get a loaner from the dealer to day and was told GM has discontinued the loaner program since it advised owners to take key off key ring...really???

My key also sticks in ignition; sounds like someone rapping on my trunk (from first week I got it); hear all kinds of clicking in steering column; etc.

Wrote GM about rapping sound and was advised to talk it to a dealer. Service tech drove car around and said he heard nothing. I hear it often.

Car also shakes and rattles when speeding up on highway...I attributed it to bad pavement until others expressed concern about same problem.


Elizabeth Blocker,

The problem you are describing has nothing to do with the recall. The problem you are having is with the lock cylinder tumblers and has had an open sepcial policy on it for years. So get the facts straight as to what the recall entails before you start running your mouth about it.


The recall has to do with the switch in the lock cylinder not being able to handle the load a heavy keychain can put on it over time. Had they put the heavier gauge spring on the release mechanism as was suggested, this would not be happening. This has nothing to do with your key sticking in the ignition, or funny sounds coming from your steering wheel. I has nothing to do with check engine lights and vehicles stalling due to other issues. It has to do with the keys popping back into accessory mode which effectively shuts down the vehicle, losing your ability to steer or accelerate out of harms way. I work for GM at a dealership and it is hilarious the garbage people bring to us saying it is part of the recall or it should be. Cars break, not everything is a recall. I think GM figured out early that you would have all kinds of people who would rather be in a 2013-14 loaner for 6 months, rather than drive their 2005 Cobalt with 150000 miles on it and would lie about the issue having happened just so they could get one. I would weed out the BSers by telling them we would scan the vehicle to tell whether it had actually happened, not knowing we really couldn't. All of a sudden using 1 key was a better option than be caught in a lie.


I have a 2010 cobalt, my car stalled while I was going to lunch break, that same evening it wouldn't start. I called dealership to find out that my car has a recall. On April 9th my car was brought in where it still sits to this day...June 16th. I only had my ignition key on the ring when that all happened. I am just getting recall notices in the mail.


I also should add that I was given a new rental car without question.


Katy, the recalls only go up to 2010 cobalts. You tried so hard to make yourself sound so educated. So sorry


Katy what the heck are you talking about 2012 cobalt they only made them up until 2010 and also I don't keep anything heavy on my
Key ring so explain to me why my car can still be ruling inch without the key in it? Yes scary to drive! Anyone else had this sort of problem with the ignition switch?


I took my car for these so recall ignition thing, and now my car is damage for good, before the changed the ignition I had no problems with my car, the service was 3 weeks ago and today my car didn't start, is locked and my key is trap in the ignition, so I think they have more problems than solutions, after they did this to my car I notice some wird notices when I turn th ecar however I really was not expecting my car to broke down after they "repair the problem", I am honeslty trying to get rid of these car because I'm sure these is just the beginning...


I have a 2008 Impala and have trouble with ignition key not turning off for months. I called my dealer and there is no fix for my car right now. I dont feel safe driving it.


I Have a 2003 Impala, The ignition will switch its self off while im driving, causing the power steering to lock, and the brakes to become stiff.... It is a HAZARD to drive ! the only thing on my key ring is the key itself and the tag the dealer have to me. Chevy really needs to do better with there cars before someone really gets hurt !

Frank Abignail III

Note to the editor: Look up "insure vs. ensure"


No, all I have Is my gm key, & house key on my key ring. My keys kept getting stuck in ignition & could not release them unless I manually did out through the key release plunge under the steering wheel. & I was not able to start my car. I went through 3 batteries because once your key gets stuck & you cannot release it while it's in acc mode, it drains your battery completely.

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