View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
January 25, 2022

GM plans to roll out behavior-based driver insurance in US

US-based automotive manufacturer General Motors (GM) is reportedly planning to launch an algorithm-based auto insurance plan by the end of the first quarter in the US.

The scheme, which is planned to be launched in some US states, would allow policyholders to be charged based on their driving performance, reported Reuters citing a company executive as saying in an interview.

Currently, GM’s subsidiary OnStar, together with its insurance partner American Family, are seeking regulatory approval for the proposed data-based insurance plan in Arizona, Illinois and Michigan.

OnStar Insurance president and GM global innovation vice-president Andrew Rose was cited by the news agency as saying that the new insurance plan is expected to receive permit at the end of March 2022.

Rose added: “We hope to follow that with a dozen, two dozen and hopefully more states.”

GM’s new policy, however, currently excludes the driver-assistance systems, as they help in the automation of certain driving task.

In future versions of the insurance plan, sensor data from GM’s “Super Cruise” system such as in-cabin camera, could be considered for rate setting, added Rose.

He further noted: “I’m very excited about what we have in market and its ability for us to show benefit to the insurance equation.”

Although behavior-based auto insurance has been available since several years, consumers are required to plug a data recorder into the car or download a mobile application.

For reliable and consistent data, GM plans to collect acceleration, braking and general usage data directly from the car, Rose noted.

The firm would provide an upfront discount to customers, who are considered safe drivers by the company, if they choose data collection under the new plan, according to Reuters.

By 2030, GM aims to generate insurance revenue of $6bn with average annual auto premium costing at around $1,000 in the US.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy