General Motors is adding a telematics-based choice to its OnStar Insurance that will offer policyholders in certain states the option of allowing their driving habits for use in setting their premiums.
OnStar has asked for regulatory approval from the new algorithm-based insurance plan in Arizona, Illinois and Michigan, and hopes to receive approval after March, Andrew Rose, president of OnStar Insurance and GM’s vice president of Global Innovation, told Reuters.
“We hope to follow that with twelve, 24 and hopefully more states,” Rose said.
If regulators approve, OnStar would join Tesla Insurance in offering telematics-based programs in Arizona and Illinois. Tesla Insurance, launched in Texas late this past year, can also be now offered in Ohio, based on the insurer’s website.
In a comment, Rose said that the new offering “means that using their consent, customers have the possibility to reduce insurance premiums according to safe driving behaviors, for example seatbelt usage and prevent and go scenarios. This new program is really a initial step in OnStar Insurance's journey to create more personalized insurance pricing to the customers.”
“As with every GM connected vehicle services, our customers may have control of their data usage and OnStar Insurance will always secure customer opt-in consent just before utilizing their data,” Rose said.
The program, a part of an ongoing collaboration by having an affiliate of yankee Family, will use “GM vehicle data,” the automaker said.
Contacted by Repairer Driven News, GM declined to state which driver behaviors would be monitored, or what standards OnStar uses to find out whether behavior is “safe.” More details were promised once the program rolls out this season.
The issue of transparency continues to be raised by Consumer Reports and other consumer advocacy groups. CR’s findings inside a deep dive into telematics programs last fall led it and the Consumer Federation of America to call on the 10 insurers to make their programs more “transparent and accountable.”
The organizations' letter asks insurers to become more forthcoming about the data they collect from telematics customers, the standards they will use to rate their driving, and the reasons each of those factors is pertinent.
In his announcement, Rose said OnStar is “working to deeply integrate insurance within the vehicle ownership lifecycle, which makes it a far more seamless process later on.” That includes accident assistance and claims handling, he said.
He added that OnStar “plan[s] to start offering an integrated insurance product with the launch from the 2023 Cadillac LYRIQ later this year.”
In the interview with Reuters, Rose asserted driver-monitoring data from GM’s upcoming Super Cruise system might be used in setting rates in later versions of the insurance policy. Super Cruise, which uses cameras, lidar and radar to allow hands-off driving, monitors the driver’s eye and head movements to make certain their eyes stick to the road.
The Insurance Institute for Highway Safety a week ago announced that it is creating a new ratings program to evaluate these driver-monitoring safeguards, and expects to issue its first group of ratings in 2022.
IIHS said it has seen no evidence that Advanced Driver Assistance Systems [ADAS] make driving safer.
Introduced in 2022, OnStar Insurance is now available in 47 states, with intends to expand to the remaining states “in a couple of months,” Rose said. Vehicles without OnStar qualify for coverage, but will not qualify for all discounts, OnStar said.