GM Working With Insurance Companies To Offer OnStar Discounts

There may be good news ahead if you drive a GM vehicle and subscribe to OnStar. Left Lane News says that GM is working with insurance companies to offer discounts for customers who renew their OnStar subscription. The discount is already available to State Farm customers in Ohio, and GM will launch a pilot program with State Farm in California later this year. Depending on the success of the Ohio and California programs, other states and insurance providers are likely to follow. Since insurance regulations are set by states, a nationwide rollout will take some time.

Why would insurance companies offer discounts for OnStar subscribers? There are several reasons, but the primary one (for now) is that OnStar can locate and disable a stolen vehicle, saving insurance companies money on vehicle recovery. On a darker note, future OnStar features include the ability to track drivers, especially those considered “high risk” by insurance companies. I’m not sure exactly how this will work, but the implications are sobering; would your insurance be canceled if OnStar reported “high risk” behavior back to the insurance company?

There’s no word on how substantial the discounts will be, but they probably won’t offset the cost of an OnStar subscription. Basic service is $199 per year, and this includes vehicle tracking and emergency response. If you want to step up to the OnStar concierge service and turn-by-turn navigation, the premium OnStar subscription runs $299 per year.

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Original: RideLust

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