General Motors (GM) is following Tesla’s lead and launching its own auto insurance, OnStar Insurance.
Tesla is a growing leader in the automotive industry. Now about to be added to the S&P 500, Tesla has the largest market value of any automaker, topping Toyota in June of this year.
So, it stands to reason that other automakers are paying closer attention to what Tesla is doing.
According to the press release it “aims to transform the auto insurance industry” with a “new digital insurance experience that aims to be secure, fair, personalized, and easy to use.”
The company announced that it would have a “relentless focus on safety” with OnStar Insurance. Its new insurance agency, OnStar Insurance Services, will be the exclusive agent for OnStar Insurance.
GM customers who have subscribed to OnStar and connected services will be eligible to receive discounts, while also receiving fully-integrated services from OnStar Insurance Services.
The insurance service will start with Arizona residents and offer its new insurance to company employees in Q4 2020. GM plans to expand this to additional customers and the general public in early 2021.
Now that Tesla, Ford, and GM are all creating insurance as a service for their customers, there is a growing threat to the conventional auto insurance industry.
Reference- Tesla PR, GM PR, Clean Technica, Ford website & PR, Businesswire Feed