Why Telematics Car Insurance from Your Auto Company Can Be a Better Way to Save

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What if you could get cheaper car insurance from inside your vehicle? See how telematics car insurance from Ford, GM, or Tesla can help you save. [[{“value”:”

If you’re tired of the pain of rising car insurance prices, you might have heard of a special type of insurance called “telematics car insurance.” With telematics, you can sign up to share some of your driving data with your auto insurance company. By showing that you’re a safe, responsible driver, you can earn lower prices on your auto insurance premium.

However, not everyone wants to sign up for telematics car insurance. Some insurance companies’ telematics apps have gotten lackluster reviews, and some people might not want to plug a telematics device into their vehicle. Some customers have complained that the telematics insurance did not deliver the hoped-for cost savings.

What if there was another way to do telematics car insurance? Well, you’re in luck: Depending on what car you drive, you might be able to get safe driving discounts from your car company. That’s right — some car companies are now offering car insurance that comes built into your connected vehicle.

Let’s see how this special type of auto insurance works and why you might want to get car insurance from inside your car.

How car insurance from your car company works

Connected vehicles are equipped with digital tools that let the cars communicate with the internet via wireless technology. A connected vehicle can provide extra safety features, easier communication and entertainment interfaces, or even serve as a rolling wifi hotspot.

But there’s another way that connected vehicles can improve your driving experience: Some connected vehicles can connect to lower-cost car insurance. Ford, GM, and Tesla have all recently started offering telematics insurance that works with these companies’ connected vehicles.

Here are the companies (and vehicles) that offer telematics car insurance from inside the car:

Ford Insure: Available for Ford connected vehicles of model year 2020 or newerGM’s OnStar Insurance: Available for Buick, Cadillac, Chevrolet, and GMC vehicles that are model year 2016 or newerTesla Insurance: Available for Tesla Model S, Model 3, Model X, or Model Y

Not all of these insurance plans are available in every state. For example, as of Jan. 26, 2024, Tesla Insurance was available in 11 states, and OnStar Insurance was only available in three states. Ford Insure has the best nationwide reach, with availability in all states except for Alaska, Hawaii, Louisiana, Massachusetts, and Oklahoma.

Why telematics car insurance could be a better deal from your automaker

If telematics car insurance is on your radar, chances are you’re feeling fed up with auto insurance rate hikes. You want to take control of your premium and get rewarded for responsible driving. So what’s holding you back? Let’s explore a few specific reasons why telematics car insurance from your car company’s insurance might be a better choice than from other insurance companies.

You’re already sharing car data

Some people are reluctant to sign up for telematics car insurance because they don’t want to share driving data with their insurance company. If you drive a connected vehicle, you might already have a higher comfort level with sharing data with your car company. For example, Tesla electric vehicles receive regular software updates over the air, like a smartphone.

If you have a good relationship with your automaker, you enjoy connected vehicle capabilities, and you don’t mind sharing data via connected vehicle, telematics car insurance could be a logical next step. (But read the fine print to make sure you’re comfortable with how your data is used as part of any telematics car insurance program.)

Read my lips: No new gadgets

Signing up for telematics car insurance, even from the best car insurance companies, can sometimes feel like an extra chore because you have to download an app or plug in a new device to track data. If you’re tired of fiddling around with apps and gadgets, getting car insurance from your auto company might be a better solution.

If you get car insurance via connected vehicle technology, there’s nothing new that you have to do. The telematics technology is already there within your connected vehicle. You just have to agree to sign up for the car insurance and share your data. No fuss, no muss.

Bundle insurance and save

Ford Insure offers a range of surprising ways to save money on insurance, like bundling home and auto insurance, or even bundling pet insurance. Don’t assume that your savings options are limited to the telematics safe driver discounts.

Bottom line

If you’re tired of the skyrocketing cost of car insurance and you drive a connected vehicle from Ford, GM, or Tesla, you might want to consider switching car insurance to your car company. Ford Insure, GM’s OnStar Insurance, and Tesla Insurance all offer unique ways to save money with built-in telematics insurance. This “car insurance inside your car” can help you get rewarded for safe driving, without any extra gadgets or hassles.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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