GM OnStar Launches Auto Insurance Services for Connected Vehicle Owners

General Motors is capitalizing on the multibillion-dollar auto insurance industry by launching its own product through its OnStar subsidiary.

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The company announced Wednesday that its exclusive insurance agency, OnStar Insurance Services, will be available for GM customers who have subscribed to OnStar and connected services in early 2021.

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Normally, insurers evaluate criteria such as age, gender, credit score, region drivers reside in and how much you use your car when determining the price for an auto insurance policy.

However, OnStar is taking a different approach.

Unlike its competitors, this policy will be tailored to individual drivers based on their driving habits.

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GM says OnStar Insurance Services is taking "biased judgment out of insurance shopping by focusing on factors within the customer’s control: individual vehicle usage and rewarding smart driving habits that benefit road safety."

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OnStar will "build on the learnings of the OnStar Smart Driver feature" in an effort to provide proactive recommendations for smarter driving habits, potentially earning them discounts, according to GM.

Andrew Rose, president of OnStar Insurance Services, says in doing so they are "offering insurance in an innovative way" compared to fellow insurers.

OnStar will first offer the insurance to GM employees in Arizona before expanding the offer to additional customers, including the general public, in early 2021.

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