GM (OnStar) Insurance: Cost and How it Works

General Motors Insurance is a fairly expensive auto and home insurance company that connects with the safety features built into GM cars.

If you drive a GM vehicle, GM Insurance will automatically monitor your driving habits and give you discounts for driving safely.

While drivers of any vehicle can sign up for GM Insurance Insurance, only owners of GM vehicles that were manufactured in 2016 or later and that have OnStar capabilities can qualify for the insurer's driving discounts. Drivers who don't own eligible vehicles may see higher costs for car insurance.

Until 2024, GM Insurance was called OnStar Insurance.

How does GM Insurance work?

That means GM Insurance is usage-based car insurance. For example, you'll pay less each month if you avoid driving at night, or more if you often drive aggressively.

Unlike Tesla's insurance, GM Insurance is available to all drivers — even if you don't have an OnStar-capable car. At the same time, discounts that depend on your car's sensors are only available if you have a car outfitted with OnStar, GM's emergency services system.

Where is GM Insurance available?

GM Insurance is sold in 13 states.

How much does GM Insurance cost?

In Phoenix, GM Insurance is the most expensive option for minimum coverage. The company's rate is over $1,200 more expensive per year — for the same vehicle — than State Farm's rate. While GM estimates that its customers could see up to a 20% reduction on their car insurance policies by signing up for coverage, this discount wouldn't make those rates notably more competitive.

GM's full coverage auto insurance, which includes liability coverage, as well as comprehensive and collision protection, is cheaper than two other options. It is, however, still more expensive than average.

General Motors home insurance

Like the company's car insurance, the homeowners coverage from GM Insurance is more expensive than its competitors. A standard homeowners insurance policy from GM Insurance comes with high coverage limits that cannot be adjusted online.

GM's home rates are at least 56% higher than several competing insurers.

GM homeowners insurance rates

Does the cost of GM Insurance depend on make and model?

There is some variation in the cost of GM Insurance depending on the make and model of the insured vehicle. Compare the cost of three SUV models from GM, along with one from Honda, a non-GM car that wouldn't be eligible for further discounts.

The Honda CR-V is the most expensive option for full coverage, while the GMC Terrain is the cheapest. The average price for all the SUVs is $316 per month, which is still much more expensive than the average cost of coverage nationally.

GM car insurance cost by make and model

GM Insurance discounts

GM Insurance offers discounts for good driving to its policyholders. However, only those with GM-brand models from 2016 or later can qualify for these savings. To get a usage-based break on your rates, GM Insurance requires policyholders to have its data-collection software to observe their driving habits. Drivers with eligible OnStar systems in their vehicles could save by driving fewer miles and showing attributes of a good driver.

GM Insurance discounts automatically detected by your car

If you don't have access to an OnStar system could save on their car insurance by bundling a home and auto insurance policy from the company, which is often one of the biggest discounts you can get. You could also see lower rates if you:

Methodology

All insurance quotes are for a driver in Phoenix, Arizona — the first state where GM was offered. In addition to the rates from GM Insurance, quotes were gathered from State Farm, USAA, Progressive, Geico, Farmers and Allstate. Unless stated otherwise, the driver is a single man who owns a 2018 Chevrolet Equinox.

All home insurance quotes are also for a home in Phoenix. The home had an area of 2,600 square feet and was built in 1963. Home insurance rates in this piece reflect $376,000 of dwelling coverage and $300,000 of liability coverage.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.