Tina Bellon

(Reuters] – General Motors Co. (NYSE:) plans to launch an algorithmic auto insurance program in certain U.S. states by the end-of-the-first quarter. The plan will be charged policyholders based their driving performance.

OnStar Insurance, an automaker subsidiary, requested regulatory approval for the data-based new insurance plan. It is being offered in Arizona. Illinois. and Michigan by American Family. Andrew Rose (president of OnStar Insurance) said Friday that it hopes to be granted the green light by March. Rose is also vice president for Global Innovation at GM.

Rose added, “We want to follow that up with a dozen,” Rose shared.

GM currently doesn’t allow driver-assistance system use. These systems can be used to automate driving and also control braking, acceleration, and other functions.

Rose stated that sensor data from GM’s Super Cruise system could be used to set rates in future versions of the insurance policy, although she declined to give a time frame.

“I’m excited about what is on the market, and how it can be used to benefit the insurance equation,” said he.

GM and the other automakers will need to pass the inspection of the state insurance commissions. They have not yet approved the use data from automated rate-setting systems.

The leading U.S. auto insurance research group, IIHS, on Thursday said https://www.iihs.org/news/detail/iihs-creates-safeguard-ratings-for-partial-automation there was no evidence that partial automation systems make driving safer https://www.reuters.com/business/autos-transportation/nonprofit-groups-rate-us-vehicle-driver-monitoring-systems-2022-01-20.

GM’s OnStar insurance offering was launched a year back.

Telematics is a behavior-based insurance that covers auto accidents. It has been around for a while, although it requires the consumer to either download an app to their phone or to plug in a data recorder to the vehicle.

Rose explained that GM gathers braking, acceleration, and general usage data from the vehicle, giving it more reliable, consistent data.

Rose explained that data collection customers will get an upfront discount on the policy if GM considers them to be safe drivers. Rose said that drivers would not be subject to surcharges for unsafe driving but these conditions could change over time.