Can You Get a Car Insurance Discount for Having OnStar?

Last Updated on December 21, 2021

If your vehicle has OnStar, then you could qualify for a car insurance discount.

Today, many insurers offer discounts for having remote shutdown and security systems like OnStar. OnStar can increase chances of vehicle recovery after theft, for example, which reduces risk for insurers.

Additionally, many insurers use OnStar data to provide customized rates. In fact, General Motors recently launched its own insurance company, OnStar Insurance Services, specifically for OnStar subscribers.

Keep reading to discover everything you need to know about the OnStar car insurance discount and how it works.

Table of Contents:

How OnStar Insurance Discounts Work

OnStar is a vehicle monitoring system. Because it monitors your vehicle, OnStar allows insurers to offer you special discounts.

An insurer could use your OnStar driving data to verify you only drive 5,000 miles per year, for example, which means you qualify for a low mileage discount.

Alternatively, many insurers offer discounts for using OnStar’s anti-theft systems. OnStar offers remote shutdown services, for example, that can remotely deactivate or track your vehicle after it has been stolen. These systems can significantly improve the chances of vehicle recovery, reducing risk for insurers.

A growing number of insurers also offer telematics or driver tracking program discounts. Your OnStar system provides data to your insurer, helping you qualify for discounts through these driver tracking systems.

We’ll break down each of these OnStar insurance discounts below.

OnStar Good Driver Discounts

You could qualify for good driver discounts with OnStar. If you share your OnStar data with your insurance company, then your insurer could verify your safe driving habits, and then charge you cheaper rates.

Progressive’s driver tracking program is called Snapshot, for example. You agree to share driving data with Progressive, and Progressive charges lower rates based on your driving habits. Most drivers use the Snapshot app to share driving data. However, you can agree to share your OnStar data with Progressive’s Snapshot program to qualify for lower rates.

Most other insurers offer similar driver tracking programs. GEICO offers DriveEasy, for example, and State Farm offers Drive Safe & Save. By linking your OnStar data with these driver tracking programs, you could qualify for significant car insurance savings.

Driver tracking programs track things like your braking habits, acceleration, and the times of day at which you drive.

OnStar Low Mileage Discounts

The average driver in the United States drivers around 14,000 miles per year. If you drive significantly fewer miles than this amount, then you could qualify for a low mileage discount with the help of OnStar.

OnStar tracks your driving habits. Your insurer may not believe that you only drive 5,000 miles per year. However, if you provide verified driving data via OnStar, then your insurer may accept your claim and provide a low mileage discount.

State Farm’s Drive Safe & Save program, for example, allows drivers to qualify for low mileage discounts via OnStar. If your OnStar system reports that you drive significantly fewer miles than average, then you could save hundreds per year on your State Farm car insurance.

National General also offers low mileage discounts to OnStar customers. If you drive fewer than 15,000 miles per year and OnStar can verify that claim, then you could save up to 54% on your National General insurance policy.

General OnStar Member Discounts

Just being an OnStar member can help you save 5% to 20% per year on car insurance. If you subscribe to OnStar, then your insurer could lower your premiums because you’re a lower risk to insure.

Some insurers extend to this discount to both auto and home insurance policies. You could save 5% to 20% per year on auto and home insurance by being an OnStar member.

OnStar Insurance Services Discounts

If you are an OnStar subscriber, then you could qualify for car insurance through OnStar Insurance Services. General Motors recently launched OnStar Insurance Services to provide specialized discounts to OnStar subscribers.

OnStar Insurance Services claims to help drivers save 20% off their auto insurance rates. They also aim to offer more personalized services. Drivers can pick and choose which insurance coverages they want.

Because of these perks, OnStar Insurance Services may be the best choice for OnStar subscribers like you.

OnStar Anti-Theft Insurance Discounts

OnStar doesn’t just track driving data and monitor accidents; OnStar also provides anti-theft services. OnStar can remotely track and shutdown your vehicle after you report a theft, for example, which significantly increases the chances of vehicle recovery.

Your insurance covers vehicle theft through comprehensive coverage. If you have an active OnStar subscription, then you could save 10% to 20% on your comprehensive coverage because of OnStar’s anti-theft tools.

Compare Quotes to Save Money

As an OnStar driver, you can choose whichever insurance company you like. By comparing quotes from multiple insurers, you can choose the one that best matches your needs.

Some companies are very familiar with OnStar and use the data to its maximum potential, allowing OnStar drivers to save hundreds per year on car insurance.

Other companies provide no perks to OnStar subscribers, offering no insurance discounts whatsoever.

By comparing quotes, you can pick the best company for your unique needs – and take full advantage of your OnStar subscription.

Get Customized Car Insurance with OnStar Insurance Services

General Motors just launched an insurance agency called OnStar Insurance Services. That insurance agency will specialize in providing customized rates to drivers with OnStar – similar to how Tesla Insurance provides specialized rates to Tesla drivers.

Because OnStar tracks driving habits, OnStar Insurance Services can provide hyper-customized packages to drivers with OnStar vehicles. Drivers can pick and choose the coverages they need, and OnStar Insurance Services can charge customized prices based on real usage habits.

If you buy insurance through OnStar Insurance Services, you could qualify for an active member discount, low mileage discount, or good driving discount. Because OnStar tracks these metrics, you could immediately qualify based on driving data OnStar already has.

By taking advantage of OnStar Insurance Services, drivers with OnStar vehicles could save hundreds per year.

To learn more about OnStar Insurance Services or to sign up today, visit the official website at OnStarInsurance.com.

Final Word on the OnStar Insurance Discount

OnStar is a popular vehicle monitoring system created by General Motors. If your car has OnStar, then you could qualify for special car insurance discounts.

Alternatively, drivers with OnStar may also qualify for OnStar Insurance Services. General Motors recently launched OnStar Insurance Services to provide customized quotes to OnStar drivers.

To learn more about OnStar car insurance discounts, contact your insurer or compare quotes online today.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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