GM’s behavior-based insurance plan for its driver assistance systems


General Motors aims to launch a behavior-based insurance plan for its driver assistance systems. Their subsidiary OnStar is awaiting regulatory permit approvals. After which GM’s policy with the use of the driver assist feature will include the behavior based insurance plan. For now, this only applies to driver assistance features that are limited to certain GM models with features like automated braking and acceleration.

Image credits – General Motors

The insurance plan will be based on the algorithm obtained by the data based on how the driver drives the vehicles. This would mean that once the driver drives by following certain guidelines like being alert to the road, then the insurance plan provides more compensation in case of damage. Although the explanation seems simple, many factors and data values ​​are involved in the system.

OnStar has sought insurance plan approvals in Arizona, Illinois and Michigan with insurance partner American Family. In an interview on Friday, OnStar Insurance president and GM vice president of global innovation Andrew Rose said they were expecting the go-ahead from regulators by March. Rose said, “We’re hoping to follow that up with a dozen, two dozen, and hopefully more states,”

Sensor data

GM’s Super Cruise has sensor data, which is not particularly used to determine driver behavior. Although the system monitors driver behavior, it only disables certain features if the driver is not paying attention. Recently, General Motors’ Super Cruise received a lot of support and extra points from Consumer Reports for supporting its drivers for good driving behaviors. It is therefore very likely that the approvals will be made soon enough.

The cabin camera can detect the eye movements of the driver, these factors will also be taken into account. Pricing should be included in later versions of the Super Cruise. However, Rose did not talk about when GM plans to launch the behavior-based insurance plans in the market. He said, “I am very excited about what we have in the market and its ability for us to show benefits for the insurance equation,”

GM, which launched its OnStar regular insurance offering a year ago, said it was targeting $6 billion in insurance revenue by 2030, with the average annual U.S. auto premium costing about $1. 000 dollars. These behavior-based insurance schemes have been considered telematics over the years since various data is collected. However, Rose says GM instead collects braking, acceleration and general usage data, such as seatbelt use, directly from the car, providing more reliable and consistent data. Additionally, adds that customers who opt into data collection for the new plan receive an upfront discount on their policy if GM deems them to be safe drivers.


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