NCR OnStar
Published on February 11th 2022 in

OnStar to launch algorithm-based auto insurance

General Motors is adding a telematics-based option to its OnStar Insurance that will offer policyholders in some states the choice of allowing their driving habits to be used in setting their premiums.

OnStar has asked for regulatory approval of the new algorithm-based insurance plan in Arizona, Illinois and Michigan, and hopes to receive approval by the end of March, according to Andrew Rose, president of OnStar Insurance and GM’s vice president of Global Innovation.

In an announcement, Rose said: “The new offering means that with their consent, customers have the potential to save on insurance premiums based on safe driving behaviours, such as seat belt usage and stop and go scenarios. This new program is a first step in OnStar Insurance’s journey to bring more personalised insurance pricing to its customers. As with all GM connected vehicle services, our customers will have control of their data usage and OnStar Insurance will always secure customer opt-in consent prior to using their data.”

When contacted by Repairer Driven News, GM declined to say which driver behaviours would be monitored, or what standards OnStar will use to determine whether behaviour is “safe.” More details were promised when the program rolls out this year.

The issue of transparency has been raised by Consumer Reports and other consumer advocacy groups. CR’s findings in 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.”

In his announcement, Rose said OnStar is “working to deeply integrate insurance in the vehicle ownership lifecycle, making it a more seamless process in the future, which includes accident assistance and claims handling.

Rose added that driver-monitoring data from GM’s upcoming Super Cruise system could be used in setting rates in later versions of the insurance plan. Super Cruise, which uses cameras, lidar and radar to enable hands-off driving, monitors the driver’s eye and head movements to make certain their eyes remain on the road.

The Insurance Institute for Highway Safety last week announced that it is developing a new ratings program to evaluate these driver-monitoring safeguards and expects to issue its first set of ratings in 2022. It added that it has seen no evidence that ADAS makes driving safer.

This article courtesy of John Huetter of Repairer Driven Education. Check out the website at: http://www.repairerdrivennews.com/.

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