DETROIT -- GMAC Insurance and OnStar are partnering to create new 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 insurance products and 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, and having those benefits recognized by the insurance industry, with tangible savings for our customers, is a great next step."

The announcement represents another step in the growing partnership between OnStar and GMAC Insurance, said 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 range of services are at the core of the insurance benefits from GMAC Insurance.

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. Together, premiums are adjusted accordingly with discounts up to 20%.

Mileage-Based Insurance -- GMAC Insurance and OnStar will pilot a new mileage-based consumer insurance concept. 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.

GMAC Insurance is a wholly owned subsidiary of General Motors Corp.