OnStar will include mileage tracking as part of their service in the near future.
Talks have begun regarding this addition. According to President, Chris Preuss, OnStar hopes to use this service as a way to offer insurance discounts to subscribers.
The addition of insurance discounts for subscribers is complex. This is because each state’s insurance procedures are different. What might be allowed in one state would not work in another.
Preuss feels that with OnStar’s tracking ability, there may be a way to help consumers get even better insurance discounts. With the possibility of being able to track certain high risk groups, OnStar may provide insurance companies to better help evaluate risks. With this capability, new discounts may become available.
State Farm launched an OnStar discount program, as a pilot, about a year ago.
Another one will be launching in California this year as well. General Motors (GM), the company that created OnStar, is watching these programs to see what happens.
OnStar is a featured available on GM automobiles. When purchasing new GM’s, OnStar is often provided at no additional charge for a period of time. Once this promotional time ends, only half of the drivers keep the service. Of the half that opt not to keep the service, about 60 percent renew their services at a later date.
Currently, OnStar costs between $199 and $299 per year. This cost depends on the extra features you desire. For example, if you would like navigation assistance, your cost is going to be on the higher end.
This recent marketing boost for OnStar resulted from the existence of Ford’s new Sync System. This allows drivers to use their smartphones and mp3 players in their vehicles. This service coasts about $400 for the first three years and then $60 per year thereafter.