The company is reducing or eliminating
the deductible charged to owners and shortening the powertrain warranty from six years or 60,000 miles to four years or 50,000 miles.
All other GM divisions will continue
to charge owners a $ 100
deductible after the one - year / 12, 000 - mile coverage expires.Ford Motor announced reductions or eliminations in repair
deductibles per visit for its 1991 models, but shortened its powertrain warranty from six years / 60, 000 miles
to four / 50, 000.
Interest incurred on indebtedness has historically been
deductible, (although the deduction of «personal» interest was largely eliminated in 1986), and in the 1950s a type of «leveraged insurance» transaction began being marketed that permitted an insurance
owner to in effect deduct the cost of paying for insurance by (1) paying large premiums
to create cash values, (2) «borrowing» against the cash value
to in effect strip out the large premiums, and (3) paying
deductible «interest» back
to the insurer, which was in turn credited
to the policy's cash value as tax - deferred earnings on the policy that could fund the insurer's legitimate
charges against policy value for cost of insurance, etc..