DETROIT:
US auto major GM announced on Wednesday it will take its relentless focus on safety and delivering a world-class customer experience one step further with OnStar Insurance.
General Motors Co. on Wednesday launched an auto insurance program with the help of its OnStar subsidiary, joining a growing field of companies hoping to cash in on the vast amounts of data generated by increasingly automated and connected cars.
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.
Tesla Inc. this year outlined plans for a similar insurance, but has yet to launch the offer. Ford Motor Co. in March struck a deal with Allstate Corp. to allow some customers to directly share usage data.
Use-based auto insurance, often referred to as telematics, has been available for several years, but in the past required consumers to download a mobile app or plug a data recorder into the car. U.S. demand for telematics surged during the pandemic as Americans drove significantly less, according to data from research firm J.D. Power.
“We’re not the only (carmaker) out there with connected vehicles, but we have more data than the rest of the industry combined,” said Andrew Rose, GM’s vice president of insurance innovation.
The company also hopes the system can eventually order vehicle replacement parts automatically after a crash to reduce repair time and costs.
"OnStar Insurance will promote safety, security and peace of mind.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,",said Rose"
Over the next few years, OnStar Insurance Services plans to develop a digital insurance experience that is:
SECURE
OnStar Insurance Services envisions a world where customers can drive with added confidence knowing they are protecting themselves, their passengers and their vehicles whenever the unexpected happens. In the future, if an accident occurs, OnStar Insurance policyholders who have an OnStar Safety & Security plan will have added peace of mind knowing that Automatic Crash Response1 can notify an OnStar Emergency-certified Advisor2 who can send for help.
FAIR
OnStar Insurance Services is working with its insurance carrier partners to offer insurance that takes 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.
PERSONALIZED
OnStar Insurance Services plans to provide customers with personalized vehicle care and promote safer driving habits. With advanced technology and data-backed analyses of driving behavior, OnStar Insurance Services plans to build on the learnings of the OnStar Smart Driver feature to provide proactive recommendations for smarter driving habits so customers can drive more safely and potentially earn discounts.
EASY TO USE
OnStar Insurance Services seeks to create a centralized location for customers' automotive insurance needs. In the coming years, OnStar will work to provide customers with a seamless insurance shopping experience. With OnStar Insurance Services, convenient online support will be available, and OnStar Insurance Services' agents will stand ready to help customers with insurance needs.
Starting with Arizona residents, OnStar Insurance Services will initially offer OnStar Insurance to GM employees in Q4 2020, expanding to additional customers, including the general public, in early 2021.