Car Insurance with OnStar Vehicle Data

By Updated at 2020-12-02 00:34:36 +0000

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Find the best cheap car insurance

Nov 18 (Reuters) - 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’s OnStar insurance offer will initially roll out in Arizona and focus on braking, acceleration and general usage data.

GM aims to eventually expand to other states and include more sophisticated data, including vehicle tire pressure or how frequently drivers engage advanced assistance systems, such as blind spot detection, lane keeping and automated braking.

The company also hopes the system can eventually order vehicle replacement parts automatically after a crash to reduce repair time and costs.

Rose acknowledged the company would have to overcome regulatory hurdles with state insurance commissions, who have yet to approve the use of more granular data to calculate rates.

“But I think we can explain...there’s nothing fairer than deriving a rate based on how you drive,” Rose said.

(Reporting by Tina Bellon in New York; Editing by David Gregorio)

Finding the best car insurance company for you

One of the best ways to get cheap car insurance is by comparing car insurance quotes — and the companies offering them. But when it comes to auto insurance, you want more than just the cheapest rates. The best cheap car insurance companies provide affordable rates without giving up quality customer service.

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The cheapest among the best companies. First, we took our best car insurance companies for 2020 and ranked them by average annual rate.

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Pricing and discounts made up a portion of each insurer’s score, but we know that cost is the top factor for many auto insurance shoppers. Since pricing is based on personal factors including your age, location, vehicle and your credit history and gender (in most cases), it’s important to shop around for car insurance quotes.

If price is the most important factor in your search, comparing car insurance quotes can help you find the cheapest rate. But your shopping experience will also shed light on a company’s customer service standards.

To find the best company for you while shopping for car insurance:

Visit your state insurance commissioner’s website to find complaints and other information about companies in your area.
Ask your agent or a customer service representative any questions you have to make sure you’re getting all the coverage you need — and nothing you don’t want.
Consider smaller insurance companies, too. Small companies offer rates well below large competitors in many locations.
If you’ve had tickets, DUIs or other violations, be sure to shop three and five years after the incident, when surcharges can drop significantly.
Want to see rates? Navigate to your state below and compare average rates from the three cheapest car insurance companies in several categories where you live.

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