Using OnStar Could Cut Insurance Rates

General Motors’ family of services is getting a little tighter. The company’s OnStar system is going to be used with GMAC’s insurance business — GM still owns 49% of GMAC — to monitor drivers’ annual mileage. The amount of miles someone puts on their car every year is the No. 1 risk indicator for insurance rates. Drivers who put on few miles can sign up for the new service, and each year OnStar will electronically send GMAC the total mileage.

Savings are said to be anywhere from 13% to 54% for drivers putting on 15,000 miles or fewer. GM hopes this will be one more feature to help sell its OnStar service, which costs between $17 and $27 a month, but until the service can be used by all insurance companies it might not be a huge draw.

OnStar Users Get Insurance Discounts (The Detroit News)