California: OnStar to start offering mileage based insurance discounts

The California Department of Insurance has given approval to State Farm’s innovative mileage-based insurance program known as Drive Safe & Save (DSS).

OnStar subscribers can save money on their automotive insurance if they participate in this program.

The program awards discounts based on the number of miles driven and allowing OnStar to provide mileage updates. The California Drive Safe & Save program begins Feb. 28, 2011.

To participate, subscribers must maintain enrollment in OnStar’s Vehicle Diagnostics, and authorize OnStar to provide State Farm with odometer information from their vehicle.

Drive Safe & Save was made available to OnStar subscribers in Ohio in August 2009.

State Farm Insurance customers who are not OnStar users, can self report odometer readings, which can be completed via the internet or communicated to their agent. Odometer readings will be validated through external vendor sources when possible.

Source: GM, State Farm Insurance.

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