GMAC Debuts Pay-as-You-Drive Insurance
GMAC Insurance has rolled out a plan that offers reduced premiums to drivers of General Motors vehicles who agree to have their mileage tracked.To qualify, the vehicles must be with GM’s OnStar security and communication service. The device would transmit monthly mileage information to GMAC Insurance, which would use the data to calculate risk.For instance, people who drive fewer than 2,500 miles per year would be eligible for a 54% discount
in insurance rates. Drivers of more than 15,000 miles per year would not qualify for reduced rates.So far, the plan is slated to roll out in 34 states; its reach will likely be expanded next year.Progressive Insurance [ticker: PGR] offers a similar program, and Allstate Corp. [ticker: ALL] and State Farm are considering it, spokesmen said.
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