Insuring Your C8 Corvette Or Cadillac Escalade Should Become Cheaper

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The automaker is launching its own in-house insurance agency.

Last year, Tesla stumbled upon a new revenue stream that hadn't really been considered by automakers before: car insurance. The company reasoned that, because its vehicles had so many sensors relaying vast mountains of data back to the company, it could more accurately appraise each driver's risk, putting it in a uniquely advantaged position when it came to pricing insurance policies.

Tesla's vehicles were then outliers when it came to how much data they were gathering, but the global fleet has evolved since then, with cars across the board all growing increasingly complex and connected. With that, GM has finally decided that it, too, might stand to profit off of the insurance game.

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General Motors has just announced OnStar Insurance - a new insurance product aimed exclusively at GM vehicles, which will be sold directly through its new in-house agency, OnStar Insurance Services. In a release, GM said that OnStar Insurance Services will leverage its "unique understanding" of GM vehicles to offer competitive, personalized coverage.

OnStar Insurance customers don't need to have an OnStar connected services subscription, but it helps, potentially unlocking discounts by relaying data related to vehicle use and "safe" driving habits. But even without that data, it's reasonable to suspect that GM might have an advantage in insuring its own vehicles for the simple fact that it understands, better than any insurer, what goes into making them.

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And there might be an opportunity for vertical integration here, in that OnStar Insurance can favor GM's own dealer network when it comes to referring a customer to a shop to have accident damage repaired. Ding your brand new C8 Corvette, or your Cadillac Escalade in a parking lot incident? We don't see OnStar Insurance directing you to seek repairs at an indie collision shop.

OnStar Insurance will first be made available to GM employees this quarter, before becoming available for the general public early next year.

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