General Motors has launched OnStar Insurance Services in the USA, which it says intends to leverage OnStar’s unique understanding of GM Vehicles to offer a “secure, fair, personalised and easy-to-use digital insurance experience for drivers”. The move signals a return to the vehicle insurance market for GM, having previously ran the GMAC Insurance brand for over 80 years until 2008.
As a GM subsidiary, OnStar provides services such as subscription-based communications, in-vehicle security, emergency services and remote diagnostics systems throughout the Americas and Europe. GM says it is using OnStar’s safety and security knowledge to develop “a smarter kind of auto insurance”.
OnStar plans to use advanced technology and data-backed analysis of driving behaviour to build on the learnings of the OnStar Smart Driver feature. GM says this will provide recommendations for smarter driving so customers can drive more safely and potentially earn discounts.
According to GM, OnStar Insurance Services is working with its insurance carrier partners to offer products that take biased judgement 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.
“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.”
OnStar says that if an accident occurs, policyholders who have an OnStar Safety & Security plan will have access to its Automatic Crash Response where an OnStar Emergency-certified Advisor can send for help.
In the coming years, OnStar said it intends to bring GM’s leadership in vehicle technology and convenience to the insurance industry.
“In the future, it is our objective to develop OnStar Insurance such that if you ever have an accident, we intend to make an instant connection to your dealer, providing ‘speed of light’ damage assessments, estimates, loaner car arrangements and more without added hassles”, the company said. “While these product features are not available today, this is our vision.”
OnStar will initially offer insurance to Arizona GM employees, adding additional customers, including the public, in early 2021.