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GMAC Offers Low-Mileage Discounts to OnStar Vehicle Diagnostics Subscribers

August 10, 2007

DETROIT - GMAC Insurance and OnStar have announced the rollout of the Low-Mileage Discount program, an opt-in program that works on the premise that customers who drive less should pay less, according to Telematics Update.

Subscribers to OnStar Vehicle Diagnostics are eligible to sign up for the Low-Mileage Discount program.

New customers receive an automatic 11-percent discount on their insurance and an OnStar subscriber discount; existing customers receive a discount based on historical mileage.

With the subscriber’s permission, the odometer reading from his monthly OnStar Vehicle Diagnostics e-mail is forwarded to GMAC Insurance. Based on those readings, their premiums are discounted according 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.

Those who drive less than 15,000 miles a year could save up to 54-percent on their insurance premiums.

Currently, the GMAC Insurance Low-Mileage Discount is available in 34 States.

GMAC and OnStar have been partnering to offer insurance discounts since early-2004.

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