General Motors’ OnStar telematics unit is launching auto insurance coverage that will be priced to … [+]
ASSOCIATED PRESS
General Motors Co., through its OnStar subsidiary, will offer insurance coverage that will compete with traditional auto insurers by using data from owners’ vehicles to set their insurance rates.
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.
Initially, the OnStar insurance plan will be offered in Arizona to GM employee by the end of this year and to the general public early in 2021. It will focus on braking, acceleration and general usage data.
By the end of 2021, the plan will be available in other regions and will include such information as tire pressure, how frequently one engages driver assist technologies such as blind spot detection, lane keeping and automated braking.
“We’re not the only automaker 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. “We aim to be an industry leader. 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.”
Earlier this year, Ford Motor Co. and Allstate said they would co-operate to share customers’ driving data.
Tesla has said it is studying a similar insurance plan.
This data, which is the core of the fast-growing market for telematics services, has been evolving in recent years. It often requires a driver to download an app or plug a data recorder into the vehicle.
GM’s Rose said another goal of the service will be to order replacement parts if a vehicle is involved in an accident. Such an innovation could save repair time and costs.
The new service will have to be reviewed by state insurance commissions that will have authority to approve or revise its pricing.
