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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.

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