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GM to launch auto insurance based on connected car data

The automaker will use data on driving habits to set prices

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Photo (c) Rostislav Sedlacek - Getty Images
General Motors announced Wednesday that it will launch an auto insurance offering that will use data from its OnStar connected vehicles. Insurance coverage rates will be based on miles driven and type of driving. 

Driving habits like following the speed limit, acceleration behaviors, and avoiding hard braking will be taken into account when determining how much consumers will pay for coverage. Good drivers will be rewarded with “significant” savings, said Andrew Rose, president of OnStar Insurance Services. 

“Consumers have chosen, with their consent, to share their driving data with GM,” Rose said. “With that information, we can let you know you can get savings because of your safe driving or not. And we can give you coaching as time goes by to become a better, safer driver.”

The automaker said consumers without GM vehicles will be allowed on OnStar insurance. However, there will be additional discounts for those who are GM owners or subscribe to OnStar’s services. 

GM said it will begin a pilot this week for its own employees in Arizona. It will be offered to the general public by early 2021. 

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