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.
California's state government would save $54 million annually based on 2006 data and $60 million based on 2020 projections if they implemented pay-as-you-drive insurance programs.
-Brookings Institute Learn More
The National General Insurance Low-Mileage Discount helps drivers save big bucks by rewarding those who drive less with substantial insurance discounts - up to 54 percent! Learn More
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
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