GM to Sell Car Insurance, Using Data on Your Driving to Set Prices

The Detroit-based auto maker will offer insurance plans branded under its OnStar connected-car service, which comes installed on all GM vehicles in North America, the company said Wednesday. Customers who sign up agree to have their driving habits tracked, and those who obey the speed limit, avoid sudden stops and practice other good-driving behavior will be rewarded with cheaper rates, GM said.

For much of its history, GM offered insurance to drivers, ending the business when it unloaded its GMAC financial-services arm in stages to raise cash around the time of its 2009 bankruptcy.As more new cars are sold with built-in internet connections, car companies are branching into services that aim to capitalize on the growing reams of data generated by a vehicle’s onboard computers and sensors. They are using it for everything from flagging possible mechanical trouble to allowing drivers to order their morning coffee from the vehicle’s multimedia touch screen.