General Motors will once again offer automotive insurance through a new entity, OnStar Insurance Services.
The automaker previously offered insurance through Motors Insurance Company which it founded in 1939, then the only insurance company in the United States to originate within the automotive industry. GM sold off the division in 2008.
Starting with Arizona residents, OnStar Insurance Services will initially offer OnStar Insurance to GM employees in 2020, expanding to additional customers, including the general public, in early 2021.
The new digital insurance experience aims to be secure, fair, personalized and easy to use, according to the automaker. OnStar Insurance Services will be the exclusive agent for OnStar Insurance.
OnStar dates back some 20 years. With the touch of the OnStar button in GM vehicles, drivers are connected to a representative who can aid in times of need such as during a crash or breakdown.
“We aim to be an industry leader, offering insurance in an innovative way,” said Andrew Rose, president of OnStar Insurance Services, in a release. “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.”
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.
Tesla Inc. announced plans in April 2019 to offer its own similar insurance but has not followed through. Earlier this year, Ford Motor Co. partnered with Allstate Corp. to allow the automaker’s customers to sign up for the tracking program that could result in insurance discounts. Progressive offers a similar usage-based insurance program called Snapshot that rewards safe driving.