General Motors makes inroads into the insurance business
General Motors (GM) is rolling out insurance through its subsidiary OnStar.
The U.S. automaker that sells vehicles internationally under various brands, including Chevrolet, Cadillac, GMC and Buick, made the announcement on Nov. 18.
OnStar offers services that are integrated in GM's in-vehicle systems. They include stolen vehicle assistance, turn-by-turn navigation and remote access plan, among others.
In addition to these services, the company will now offer insurance dubbed OnStar Insurance through OnStar Insurance Services, GM's new insurance agency.
OnStar Insurance Services, which will be the exclusive agent for OnStar Insurance, "intends to leverage its unique understanding of the vehicles GM produces to offer a secure, fair, personalized and easy-to-use digital insurance experience for drivers," the parent company says.
To become the auto insurance industry leader, OnStar Insurance Services will be leveraging technology.
“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," says insurance agency president Andrew Rose.
OnStar Insurance Services adds that it is working with its insurance carrier partners to offer insurance that takes "biased judgment" out of insurance shopping. Instead, it will focus on individual vehicle usage and rewarding smart driving habits.
Insurance policies sold through OnStar Insurance Services will be underwritten and issued by member companies of the American Family Mutual Insurance Company (AMFAM).
Starting in 2020
Starting in fourth quarter 2020, GM will offer its insurance to its employees residing in Arizona. The company plans to expand its offer to other customers, including the general public, in early 2021.
GM’s website states that the company had 164,000 employees in 2019, including more than 85,000 in the United States.