Tucson, Arizona — Last week, General Motors (GM) announced it will take its focus on safety one step further with OnStar Insurance. GM’s new insurance agency, OnStar Insurance Services, will be the exclusive agent for OnStar Insurance.
The new auto policy is aimed at tailoring insurance rates to consumers based on individual driving behavior and use of vehicle safety systems. This contrasts with criteria such as age, gender, neighborhood or credit score frequently considered by insurers, but heavily criticized by consumer advocacy groups.
GM said it will use data from its on-board concierge device OnStar, which connects drivers to human operators who help with navigation or emergencies, but also collects precise data on driving patterns, such as hard braking and acceleration.
“OnStar Insurance will promote safety, security and peace of mind,” said Andrew Rose, president of OnStar Insurance Services. “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.”
Over the next few years, OnStar Insurance Services plans to develop a digital insurance experience that is “secure, fair, personalized and easy to use,” according to the automaker.
The program will first be offered to residents of Arizona, U.S., and will offer OnStar Insurance to U.S. GM employees in Q4 2020, expanding to additional customers, including the general public, in early 2021.
