GM to Offer Auto Insurance Through OnStar
General Motors is relaunching an auto insurance division as a way to generate new revenue using data from its growing numbers of connected vehicles in the U.S. The new business unit will be under the automaker’s OnStar connectivity brand.
Starting November 25, coverage will be offered to about 1,000 GM employees in Arizona before rolling out to its 85,100 U.S. employees and to the general public by the end of next year. GM previously offered its own auto insurance from 1925 to 2008. Andrew Rose, president of OnStar Insurance Services, declined to disclose earnings projections for the new insurance business but said the “opportunity is enormous.” Rose is an auto insurance veteran who joined the company in January.