General Motors Launches Into Auto Insurance

Customers who sign up for OnStar Insurance will agree to have their driving habits tracked by the OnStar equipment installed on all GM vehicles. This telematics approach allows OnStar Insurance to reward safe driving behavior in the form of lowered insurance premiums, and to guide drivers through proactive recommendations to improve driving habits.

The insurance is meant to be sold as a complement to the telematics and connected car services of OnStar to form a comprehensive automobile security experience. GM said that policyholders who have both OnStar Insurance and OnStar Safety & Security can rest easy knowing that the automatic crash detection systems on their cars will immediately notify an advisor, who can send for help.

A company release said that the insurance sold through OnStar Insurance Services is underwritten and issued by member companies of American Family Mutual Insurance Company. GM explained that the insurance agency is working with insurance carrier partners to offer insurance at fair prices, based on individual vehicle usage and to reward smart driving habits.

"OnStar Insurance will promote safety, security and peace of mind," said OnStar Insurance Services president Andrew Rose. "We aim to be an industry leader, offering insurance in an innovative way. GM customers who have subscribed to OnStar and connected services will be eligible to receive discounts, while also receiving fully-integrated services from OnStar Insurance Services."

A pilot of the insurance program will first launch in Arizona, with OnStar Insurance being initially offered to GM employees. The program will later expand to additional customers, including the general public, in early 2021.