Onstar Insurance

The insurance from GM, a pilot program for now, works with a driver’s OnStar account to help potentially lower insurance costs based on data about driving habits.

General Motors (GM) offers its own auto insurance through its OnStar services brand. OnStar Insurance monitors the behavior of its policyholders in order to factor driving behavior into its rates. Good drivers may see cheaper rates and extra opportunities for discounts if they demonstrate safe habits on the road.

While drivers of any vehicle can sign up for OnStar Insurance, only owners of GM vehicles that were manufactured in 2015 or later and that have OnStar capabilities can qualify for the insurer’s driving discounts. Drivers who don’t own eligible vehicles may see higher costs of car insurance.

Pricing of the new insurance will be pegged more to the expanding spectrum of data showing how drivers perform while behind the wheel, than by such categories as gender, age, where they live or credit histories. the traditional determinants insurers have used to set rates.

Some of that data is already captured by OnStar’s on-board concierge services that connects drivers with customer service representatives in the case of emergencies or requests for navigation guidance. But OnStar also collects data on a driver’s habits and tendencies that include braking and acceleration.