OnStar: Next Step For OEM Partnerships

 Wednesday, November 25, 2020

 Insurance Thought Leadership

GM announced this week that it will start selling policies directly to drivers through its new OnStar Insurance program. The company will start with its employees in Arizona and plans to expand to the general public by the end of 2021.

This move has gotten some attention in mainstream sources like the Wall Street Journal. The policies are underwritten by American Family Insurance affiliates and issued on its paper.

In that sense, this partnership is an extension of the insurer/auto manufacturer data-sharing partnerships that have proliferated in recent years.

Insurers have inked these deals to create a new way to collect driving data that’s easier for the driver than installing a device or downloading an app.

These deals have typically involved the original equipment manufacturers (OEMs) sharing driving data with the insurer, which can use it to score drivers and offer discounts. In GM’s case, it’s also been a marketing partner—you can head to OnStar.com and enter your state to find insurers that might offer you a discount if you’re a good driver.