Insurance company uses data from widely used On-Board Monitoring System (OBMS) to provide customers with insurance premium discounts of 5 to 54 percent.
In January 2004, GMAC Insurance and OnStar jointly announced that drivers in Pennsylvania, Arizona, Indiana, and Illinois with active OnStar accounts, which are used to communicate vehicle mileage to GMAC Insurance, would be eligible to save from 5 percent to 40 percent on their car insurance, depending on which of seven mileage categories the amount of their driving fell. The GMAC Insurance discount—which has increased to 54 percent for the lowest mileage drivers driving 2,500 or fewer miles per year and is at 13 percent for those driving between 12,501 and 15,000 miles per year—is available in most states to drivers who use OnStar.
By 2008, OnStar’s market penetration had grown to over five million subscribers in the United States, and a year of coverage became standard on every General Motors vehicle.
Author: Allen Greenberg
Published By: Federal Highway Administration
Source Date: January 2009URL: http://ops.fhwa.dot.gov/publications/fhwahop08044/fhwahop08044.pdf
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