Auto insurers that partner with original equipment manufacturers (OEMs) will likely have to pick up the tab and bear the financial burden of the insurance policies. (Photo: Paul Sancya/AP Photo)

The recent announcement of General Motors’ (GM) return to auto insurance with the launch of its usage-based insurance program, OnStar Insurance (delivered with American Family Insurance), didn’t come as a surprise in most circles. Back in 2007, GM discontinued a venture into auto insurance due to the financial climate — the Great Recession — and doubts of whether auto insurance customers would actually purchase coverage from original equipment manufacturers (OEMs).

However, following the COVID-19 pandemic, auto insurance customers are showing increasing interest in getting products and services that fit their needs such as pay-per-mile and pay-as-you-drive, giving GM, as well as Tesla, Ford and Lincoln, the confidence to give auto insurance another stab.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2022 ALM Global, LLC. All Rights Reserved.