Driver Assistance Technology - General Motors

GM’s driver behavior based insurance plan for its driver assistance systems

General Motors aims to launch a behavior-based insurance plan for its driver assistance systems. Their subsidiary OnStar is waiting for approvals of regulatory permits. After which GM’s policy with the use of driver assists feature will include the behavior-based insurance plan. For now, this applies only to driver-assist features which are limited to certain models of GM having features like automated control braking and acceleration.

Driver Assistance Technology - General Motors
Image Credits- General Motors

The insurance plan will be based on the algorithm obtained by the data based on how the driver drives the vehicles. It would mean that once the driver drives following certain instructions like being attentive to the road, then the insurance plan provides greater compensation in case of damage. While the explanation sounds simple, there are many factors and data values involved in the system.

OnStar applied for approvals for the insurance plan in Arizona, Illinois, and Michigan together with its insurance partner American Family. During an interview on Friday, the president of OnStar Insurance and GM’s vice president of Global Innovation, Andrew Rose said that they are expecting the go-head from regulators by March. Rose said, “We hope to follow that with a dozen, two dozen, and hopefully more states,”

Sensor data

GM’s Super Cruise has sensor data, which is not particularly used to determine driver behavior. While the system does monitor driver behavior, it only disables certain features in case the driver isn’t attentive. Recently General Motors’s Super Cruise received much support and additional points from Consumer Reports for supporting its drivers for good driving behaviors. So it is most likely that the approvals will be done soon enough.

The cabin camera can detect the eye movements of the driver, such factors will also be considered. The rate-setting is expected to be included in the later versions of the Super Cruise. However, Rose did not talk about when GM expects to launch the behavior-based insurance plans into the market. He said, “I’m very excited about what we have in the market and its ability for us to show benefit to the insurance equation,”

GM, which launched its regular OnStar insurance offer a year ago, has said it targets $6 billion in insurance revenue by 2030, with the average annual U.S. auto premium costing around $1,000. Such behavior-based insurance plans have been considered telematics over years the past as various data is collected. However, Rose says that GM instead collects braking, acceleration, and general usage data, such as seatbelt use, directly from the car, providing more reliable and consistent data. Furthermore adds that Customers who opt into data collection for the new plan receive an upfront discount on their policy if GM considers them safe drivers.