OnStar/National General Insurance Pay-As-You-Go Insurance: “The Low-Mileage Discount”
Insurance Discount Helps OnStar Users Drive Less, Save More
The Low-Mileage Discount is an innovative Pay-As-You-Go insurance program offered to OnStar subscribers in 35 states, where those who drive less, pay less on their auto insurance. (For general info on Pay-As-You-Go insurance, click here.)
The Low-Mileage Discount is the first Pay-As-You-Go insurance to leverage OnStar technology, making the Low-Mileage Discount less invasive than many other Pay-As-You-Go insurance programs. Where some insurers monitor drivers’ speeding habits, braking patterns, and even time of day driving, the Low-Mileage Discount Pay-As-You-Go insurance program factors only mileage. No additional data is gathered by the insurer for any purpose.
Eligible, active OnStar subscribers that drive less than 15,000 miles annually can receive an insurance discount of up to 54 percent based on the number of miles driven.* And new National General Insurance Pay-As-You-Go insurance customers may receive an additional insurance discount just for joining (existing OnStar customers receive an insurance discount based on historical mileage).
With the subscriber’s permission, the odometer reading from his or her monthly OnStar Vehicle Diagnostics email is forwarded to National General Insurance. Based on those readings, the company applies the insurance discount using the Low-Mileage Discount tiers corresponding to miles driven.
Customers who drive more than 15,000 miles per year are not penalized by National General Insurance’s Pay-As-You-Go insurance – all OnStar customers still receive an insurance discount* simply for having an active OnStar subscription, even if they are not eligible for the Low-Mileage Discount.
With the money drivers save by enrolling in the Low-Mileage Discount, the OnStar subscription can not only help lower transportation costs, but also has the added benefits of stability and security with automatic vehicle diagnostics and roadside assistance.
National General Insurance now has over 30,000 subscribers to its Pay-As-You-Go insurance program, and the company plans to offer the Low-Mileage Discount in additional states.
See what the media says about Pay-As-You-Go insurance and the Low-Mileage Discount.
It would take an 81-cent-per-gallon increase in the gas tax to achieve the 6.5 percent reduction in miles driven that pay-as-you-drive insurance programs would achieve. -Brookings Institute Learn More
If the state of California implemented a pay-as-you-drive insurance program, it would result in an eight-percent decrease in driving from light-duty vehicles. -Brookings Institute Learn More
Nearly two-thirds of Californian households would receive an insurance discount under pay-as-you-drive insurance with an average savings of $276 per vehicle per year.
-Environmental Defense Fund Learn More
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