GMAC Insurance and OnStar announced the rollout of
the Low-Mileage Discount program where Americans who drive less, pay
less on their auto insurance. The opt-in program is the first of its
kind leveraging state-of-the-art technology using OnStar to allow
customers who drive fewer miles to benefit from substantial savings.
Eligible active OnStar subscribers simply sign up to save on their
premiums (up to 54%) if they drive less than 15,000 miles annually.
Since the pilot program began, 10,000 participants have enrolled in the
Low-Mileage Discount program.
program, new customers receive an automatic 11% discount, as well as
the GMAC Insurance OnStar Subscriber Discount, upon enrollment
(existing customers receive a discount based on historical mileage).
With the subscriber’s permission, the odometer reading from his or her
monthly OnStar Vehicle Diagnostics email is forwarded to GMAC
Insurance. Based on those readings, the company will decrease their
premiums using discount tiers corresponding to miles driven. There is
no additional reporting, downloading or monitoring required, and no
additional data is gathered or used for any purpose other than to help
manage transportation costs. Customers who drive more than 15,000 miles
per year are not penalized. In fact, all OnStar customers receive a
discount for simply having an active OnStar subscription.
“Customers who drive less should pay less, and this program allows
customers to use technology already in their vehicles to give them the
discounts they deserve,” said Gary Kusumi, president and CEO, GMAC
Insurance. “Giving consumers the power of cost control is a welcome
advance, especially as people manage their transportation costs more
closely in the midst of fluctuating gas prices. The program also
encourages people to limit unnecessary driving, helping the environment
in the process.”
Robert Panczak of
Schaumburg, IL, experienced the benefits of the GMAC Insurance
Low-Mileage Discount program first-hand as a participant in the program
pilot. Panczak is savvy about the insurance industry and wanted to find
a company that offered the best value for his needs. He had three cars
in all, but one, a Saturn VUE equipped with OnStar, was driven very
rarely and only for short trips. Since beginning the pilot program in
March 2006, Panczak has saved $500 per year with the Low-Mileage
“Before switching to GMAC
Insurance, my premiums were eating me alive,” Panczak said, “and since
I didn’t use one car as often as the others, why should I pay the same
amount in insurance? Now, I don’t have to.”
“We are bringing more value to the 2.8 million subscribers who receive
monthly OnStar Vehicle Diagnostics emails,” said Chet Huber, OnStar
president. “Not only are we providing them with information about the
health of key operating systems in their vehicles, we are helping them
to save on their transportation costs as well.”
OnStar Vehicle Diagnostics is an industry-first service available only
from GM, which collects valuable maintenance information on four of the
vehicle’s key operating systems from hundreds of diagnostic checks and
sends a personalized e-mail directly to the owner once a month.
The GMAC Insurance Low-Mileage Discount program is easy to initiate,
with no effort from the customer beyond initial enrollment. There are
no additional devices installed in the vehicle, and the only data that
GMAC Insurance collects are miles driven on a monthly basis. Other
low-mileage discount programs have met with customer resistance due to
privacy concerns over the level of data collected.
Drivers can also opt to take advantage of enhanced accident support
services. If a GMAC Insurance customer is involved in an collision,
they can request the OnStar advisor to transfer them to a
representative to initiate the claim and arrange for towing and rental
car services, after responding to any emergency assistance needed.
Customers must enroll in OnStar Vehicle Diagnostics to be eligible for
the GMAC Insurance Low Mileage Discount. Eligible OnStar subscribers
can enroll in the opt-in service at no additional cost by simply
pressing their blue OnStar button and asking to be enrolled, or by
visiting the OnStar Web site ( www.onstar.com
). OnStar Vehicle Diagnostics service can be activated on most 2004
model-year or newer OnStar-equipped GM vehicles that have GM’s Oil-Life
System. The only information shared with GMAC Insurance for the
Low-Mileage Discount is miles driven on a monthly basis.
OnStar will be standard on most GM retail cars, trucks and SUVs in the
United States and Canada by the end of 2007. Currently, the GMAC
Insurance Low-Mileage Discount is available in the following 34 states:
- New Hampshire
- New Mexico
- New York
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
GMAC Insurance plans to extend availability to additional states in the next year.
Doing the Math: Specific Savings
Following is a breakdown of the discounts offered in the GMAC Insurance
Low-Mileage Discount program, including the OnStar Subscriber Discount:
Annual Mileage Average Total Savings*
* Average total savings include the Low-Mileage Discount and the OnStar
Anti-Theft Discount combined. The LMD is full-policy savings at the
vehicle level. The OnStar Subscriber Discount provides savings off of
the Bodily Injury, Comprehensive and Property Damage coverages of the
vehicle policy. Drivers who average fewer than 5,000 miles per year may
receive even more than 35% in savings.
addition to the Low-Mileage Discount program, GMAC Insurance offers
even more discounts on auto insurance premiums for current GMAC Auto
Finance and GMAC Mortgage customers; GM Cardmembers; GM/GMAC employees
and retirees; active OnStar subscribers; customers with multiple GM
vehicles; and customers who qualify as safe drivers. For more
information on the GMAC Insurance Low-Mileage Discount Program and
additional discounts for GM and GMAC Insurance products, and to find a
local independent agent, call 1-800-GMAC-123, or visit www.gmacinsurance.com to receive a quote.