(Reuters) – General Motors Co. launched a car insurance program on Wednesday with the help of its OnStar subsidiary and joined a growing field of companies hoping to monetize the vast amounts of data generated by increasingly automated and connected cars.
The new car policy aims to tailor insurance premiums to consumers based on individual driving behavior and use of vehicle safety systems. This is in contrast to criteria such as age, gender, neighborhood or credit score that are often taken into account by insurance companies, but are strongly criticized by consumer groups.
GM said it will use data from its built-in OnStar concierge unit, which connects drivers to human operators to assist with navigation or emergencies, but also collects accurate driving patterns, such as hard braking and acceleration.
This year Tesla Inc. outlined plans for a similar insurance, but has not yet launched the offer. Ford Motor Co. concluded an agreement with Allstate Corp. in March. to allow certain customers to directly share usage data.
Use-based car insurance, often called telematics, has been around for several years, but previously consumers were required to download a mobile app or connect a data entry to the car. US demand for telematics increased during the pandemic as Americans drove significantly less, according to data from research firm JD Power.
"We are not the only ones (automakers) out there with connected vehicles, but we have more data than the rest of the industry combined," said Andrew Rose, GM's vice president of insurance innovation.
The company's OnStar insurance offering will initially be launched in Arizona, focusing on braking, acceleration and general use.
GM aims to eventually expand to other states and include more sophisticated data, including vehicle tire pressure or how often drivers use advanced assistance systems, such as blind spot detection, lanes and automatic braking.
The company also hopes that the system can eventually order vehicle replacement. parts automatically after a crash to reduce repair time and costs.
Mr. Rose acknowledged that the company would need to overcome regulatory barriers with state insurance commissions, which have not yet approved the use of more detailed data to calculate rates. based on how you drive, ”said Rose. Catalog