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New Technology Lets Americans Who Drive Less, Pay Less

GMAC Insurance and OnStar announced last week the rollout of the Low-Mileage Discount program where Americans who drive less, pay less on their auto insurance.

by Staff
July 24, 2007
4 min to read


DETROIT and ST. LOUIS — GMAC Insurance and OnStar announced last week the rollout of the Low-Mileage Discount program where Americans who drive less, pay less on their auto insurance. The opt-in program is the first of its kind leveraging state-of-the-art technology using OnStar to allow customers who drive fewer miles to benefit from substantial savings. Eligible active OnStar subscribers simply sign up to save on their premiums if they drive less than 15,000 miles annually. Since the pilot program began, 10,000 participants have enrolled in the Low-Mileage Discount program.


Under the program, new customers receive an automatic 11-percent discount, as well as the GMAC Insurance OnStar Subscriber Discount, upon enrollment (existing customers receive a discount based on historical mileage). With the subscriber's permission, the odometer reading from his or her monthly OnStar Vehicle Diagnostics e-mail is forwarded to GMAC Insurance. Based on those readings, the company will decrease their premiums using discount tiers corresponding to miles driven. There is no additional reporting, downloading or monitoring required, and no additional data is gathered or used for any purpose other than to help manage transportation costs. Customers who drive more than 15,000 miles per year are not penalized. All OnStar customers receive a discount for simply having an active OnStar subscription.

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"Customers who drive less should pay less, and this program allows customers to use technology already in their vehicles to give them the discounts they deserve," said Gary Kusumi, president and CEO, GMAC Insurance. "Giving consumers the power of cost control is a welcome advance, especially as people manage their transportation costs more closely in the midst of fluctuating gas prices. The program also encourages people to limit unnecessary driving, helping the environment in the

process."


"We are bringing more value to the 2.8 million subscribers who receive monthly OnStar Vehicle Diagnostics emails," said Chet Huber, OnStar president. "Not only are we providing them with information about the health of key operating systems in their vehicles, we are helping them to save on their transportation costs as well."


OnStar Vehicle Diagnostics is an industry-first service available only from GM, which collects valuable maintenance information on four of the vehicle's key operating systems from hundreds of diagnostic checks and sends a personalized e-mail directly to the owner once a month.


The GMAC Insurance Low-Mileage Discount program is easy to initiate, with no effort from the customer beyond initial enrollment. There are no additional devices installed in the vehicle, and the only data that GMAC Insurance collects are miles driven on a monthly basis. Other low-mileage discount programs have met with customer resistance due to privacy concerns over the level of data collected.

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Drivers can also opt to take advantage of enhanced accident support services. If a GMAC Insurance customer is involved in a collision, they can request the OnStar advisor to transfer them to a representative to initiate the claim and arrange for towing and rental car services, after responding to any emergency assistance needed.


Customers must enroll in OnStar Vehicle Diagnostics to be eligible for the GMAC Insurance Low Mileage Discount. Eligible OnStar subscribers can enroll in the opt-in service at no additional cost by simply pressing their blue OnStar button and asking to be enrolled, or by visiting the OnStar Web site (www.onstar.com). OnStar Vehicle Diagnostics service can be activated on most 2004 model-year or newer OnStar-equipped GM vehicles that have GM's Oil-Life System. The only information shared with GMAC Insurance for the Low-Mileage Discount is miles driven on a monthly basis.


OnStar will be standard on most GM retail cars, trucks and SUVs in the United States and Canada by the end of 2007. Currently, the GMAC Insurance Low-Mileage Discount is available in 34 states and GMAC Insurance plans to extend availability to additional states in the next year.


In addition to the Low-Mileage Discount program, GMAC Insurance offers even more discounts on auto insurance premiums for current GMAC Auto Finance and GMAC Mortgage customers; GM Cardmembers; GM/GMAC employees and retirees; active OnStar subscribers; customers with multiple GM vehicles; and customers who qualify as safe drivers. For more information on the GMAC Insurance Low- Mileage Discount Program and additional discounts for GM and GMAC Insurance products, and to find a local independent agent, call 1-800-GMAC-123, or visit www.gmacinsurance.com to receive a quote.


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