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GMAC Insurance and OnStar Create Innovative Insurance Products

January 28, 2004

GMAC Insurance and OnStar announced Jan. 28 they are partnering to create what they call "new and innovative insurance products" for their joint customers. Under the collaboration, GMAC Insurance will use the capabilities of OnStar's in-vehicle safety and security system to offer OnStar subscribers what the companies called "unique insurance products and significant premium discounts."

"We're extremely excited to be able to announce a great new set of additional benefits that will now be available to OnStar subscribers as a result of our partnership with GMAC Insurance," said OnStar President Chet Huber. "We're proud of the level of service OnStar delivers to its 2.5 million subscribers," said Huber "and having those benefits recognized by the insurance industry, with tangible savings for our customers, is a great next step."

This announcement is another step in the growing partnership between OnStar and GMAC Insurance according to Gary Kusumi, president of GMAC Insurance Personal Lines. "There are synergies among our services that naturally give rise to new products and services that empower consumers," said Kusumi. "This type of innovation arises from the power of two best-of-breed players working together with consumers in mind. There will be additional innovations from this partnership."

OnStar's technology and broad range of existing safety and security services are at the core of the insurance benefits from GMAC Insurance, according to the companies. Responding to airbag deployments, roadside assistance situations, in-vehicle emergencies, stolen vehicle location assistance or helping subscribers with remote vehicle diagnostics, "all work to fundamentally improve the driving experience," according to OnStar. OnStar's hands-free, voice activated cell phone capabilities are recognized as providing a safer alternative to hand-held devices when calls must be made or received while driving.

The new evolving GMAC Insurance products include the following:

OnStar Subscriber Discount - GMAC Insurance will begin rolling out a special subscriber discount for OnStar customers in several states, with plans for national expansion. The discount is the result of research that recognized the safe driving habits of OnStar subscribers. This is in addition to the enhanced safety discount given when vehicles are equipped with the OnStar system and together premiums are adjusted accordingly with discounts up to 20 percent.

Mileage-Based Insurance - GMAC Insurance and OnStar will pilot a new mileage-based consumer insurance concept beginning in February. The program will offer discounts to eligible subscribers in three states as part of a test program to validate feasibility and customer appeal. Eligible customers must have an active OnStar subscription and drive a qualified GM vehicle since OnStar's vehicle connectivity provides the basis for this service. With the customer's permission, OnStar will verify mileage on the vehicle twice during the policy period. Because of the ability to cost effectively gather actual mileage readings, discounts can range up to 40%. The lower the vehicle mileage, the more significant the discount.

Separately, GMAC Insurance is also offering two new OnStar-enabled services for the GM Dealer network.

GMAC Risk Services and OnStar worked together to create the Theft Deterrence and Recovery Assistance System (TDRA), which combines an OnStar multi-year subscription with a theft deterrent component protecting the vehicle and delivering cash benefits in the event a customer's vehicle is stolen.

GMAC Risk Services also launched the OnStar Deductible Waiver Endorsement for GM Dealers who insure their inventory under the GMAC Wholesale Floor Plan Insurance Program or the Motors Inventory Coverage Program. The Endorsement waives the deductible for covered autos in the event of damage that occurs to a stolen vehicle that is ultimately recovered provided certain conditions are met.

"GM dealers and their customers can enhance their peace of mind by taking advantage of these creative products offered through GMAC Insurance," the companies said in a prepared statement.

About GMAC Insurance

A wholly owned subsidiary of General Motors Corpor., GMAC Insurance is an integral component of GMAC Financial Services with more than 100 offices in the United States, Canada, Europe, Latin America and Asia.

GMAC Insurance provides a range of insurance coverages to individuals as well as businesses. These include personal lines, mechanical coverages, commercial lines and reinsurance.

With more than $1.3 billion in annual written premiums, 2,700 employees and customers in 48 states, GMAC Insurance Personal Lines says it is one of the largest underwriters of personal lines insurance in the United States. A.M. Best, an independent insurance rating agency, rates GMAC Insurance companies "Excellent" for financial strength and claims paying ability.

GMAC Insurance Personal Lines offers a spectrum of consumer and specialty automotive insurance products directly to customers and through a network of more than 12,000 independent agents.

Additional information is available at www.gmacinsurance.com.

About OnStar

A wholly owned subsidiary of General Motors Corp., OnStar is a provider of in-vehicle safety, security and information services using a Global Positioning System (GPS) satellite network and wireless technology.

Additional information regarding OnStar and special auto insurance discounts through GMAC Insurance is available at www.onstar.com.

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