Car Manufacturer Insurance Programs: Tesla, GM, and OEM Coverage

Who's Offering OEM Insurance and How It Works

Automakers selling insurance is no longer a futuristic concept. It is happening right now. Tesla, General Motors, and Rivian have all stepped into the insurance market, using the connected technology built into their vehicles to assess risk and price premiums. Instead of relying on traditional factors like age, gender, or credit score, these manufacturer-owned programs tap directly into your car's onboard systems to understand how you actually drive.

This approach, often called Real-Time Insurance or telematics-based insurance, marks a fundamental shift in how auto coverage is priced and sold. Rather than buying a policy from a third-party insurer who knows little about your specific vehicle, you're buying from the entity that built it.

OEM and embedded insurance channels are among the fastest-growing segments of the auto insurance industry, driven by connected vehicle adoption, AI-powered underwriting, and automaker-insurer API integrations. For consumers, that growth translates to more options and more pressure on traditional insurers to compete. Learn more about the broader shift in our guide on embedded car insurance sold through dealerships and automaker platforms.

The Major OEM Insurance Players in 2026

Here's a look at the automakers currently offering their own insurance programs and what makes each one unique:

Tesla Insurance

Tesla Insurance is the most prominent and mature OEM program on the market. Tesla began underwriting its own policies through Tesla Property & Casualty in 2025, a significant milestone after initially relying on third-party underwriters since its 2019 launch. As of August 2026, Tesla Insurance is available in 15 states: Arizona, California, Colorado, Florida, Illinois, Indiana, Maryland, Minnesota, Nevada, Ohio, Oregon, Tennessee, Texas, Utah, and Virginia. Florida was added in early 2026 and Tennessee followed under Tesla's ongoing state-by-state rollout.

Tesla prices premiums using a proprietary Safety Score system that tracks hard braking, aggressive turning, unsafe following distance, excessive speeding, unbuckled driving, and late-night driving (11 PM to 4 AM). No additional hardware is required. Tesla uses sensors already embedded in the vehicle, and your monthly premium is based on your Safety Score. As your score improves, your premium drops. Tesla rolled out Safety Score 3.0 in 2026, which scores every mile driven with FSD (Supervised) engaged as a perfect 100, and now offers a maximum discount of 10% on certain coverages when you drive with FSD (Supervised) enabled over the last 30-day period.

California exception: Tesla Real-Time Insurance is not available in California. Tesla Insurance offers an insurance product in California that does not use Safety Score to determine your monthly premium. California policyholders may opt in to receive a Safety Score for educational purposes only, due to state regulations that prohibit driving-behavior data from setting rates.

There is also a growing third-party option. In January 2026, Lemonade launched a competing pay-per-mile Tesla insurance product that prices Tesla Full Self-Driving miles at a 50% discount relative to manually driven miles. First launched in Arizona and Oregon, the product has since expanded to Indiana, Colorado, and (most recently) Tennessee in August 2026. Learn more about how autonomous vehicle insurance is evolving as self-driving adoption grows.

GM Insurance

General Motors offers GM Insurance (rebranded from OnStar Insurance in January 2024) through its OnStar ecosystem, covering Chevrolet, Buick, GMC, and Cadillac vehicles. As of mid-2026, GM Insurance is available in 18 states, with Florida among its newest additions, joining Alabama, Arkansas, Arizona, Colorado, Georgia, Illinois, Indiana, Iowa, Louisiana, Missouri, Ohio, Pennsylvania, Tennessee, Texas, and Virginia. Coverage is not yet available in California. GM Insurance uses OnStar telematics (in states where allowed) to monitor driving behavior including acceleration, braking, cornering, speed, seat belt usage, and mileage, and bases rates on actual driving habits.

Important regulatory update: In January 2026, the Federal Trade Commission finalized an order with General Motors and OnStar settling allegations that they collected, used, and sold consumers' precise geolocation data and driving behavior data from millions of vehicles without adequately notifying consumers and obtaining their affirmative consent. Key terms include a 5-year ban on sharing geolocation or driving data with consumer reporting agencies, and a 20-year requirement to obtain affirmative express consent before collecting or sharing vehicle data, along with consumer rights to access, delete, or disable precise location tracking.

Then in May 2026, California Attorney General Rob Bonta announced a follow-on record settlement. General Motors agreed to pay $12.75 million in civil penalties for selling driving data of hundreds of thousands of California motorists to data brokers, allegedly without their consent. The settlement was the largest ever for violations of the California Consumer Privacy Act. The state settlement also requires GM to delete retained driving data within 180 days and imposes a five-year ban on selling data to consumer reporting agencies. GM discontinued its Smart Driver program in 2024 ahead of these orders.

Honda Insurance Solutions (Paused in 2026)

Honda launched Honda Insurance Solutions in July 2025 as a licensed 50-state marketplace powered by VIU by HUB, allowing consumers to compare quotes across multiple carriers. However, about a year after launching, Honda Insurance Solutions is no longer in operation. Honda Insurance Services paused operations in July 2026. Existing policies remain in force with their original carriers or through VIU by HUB, but you cannot start a new policy through the Honda platform today. American Honda Finance said the pause reflects an evolving insurance landscape and ongoing industry uncertainty, with no relaunch date announced. This makes Honda a cautionary tale about how quickly OEM insurance experiments can shift direction.

Rivian Insurance

Rivian offers its own Rivian Insurance program. Rivian Insurance is available in all 50 states and Washington, D.C., and its vehicle policies also cover Rivian vehicle accessories. Coverage is powered through partnerships with major carriers like Progressive, Nationwide, and Cincinnati Insurance. The program integrates with Rivian's connected vehicle platform and its Driver+ ADAS suite (adaptive cruise control, automatic emergency braking, and lane-keeping assist) to track driving quality. Per MoneyGeek's 2026 data, Rivian car insurance averages $276 per month for full coverage and $141 per month for minimum coverage, with an overall average across both coverage types of $209 per month ($2,508 per year), reflecting the elevated repair complexity of electric vehicles.

How Vehicle Data Powers OEM Insurance Pricing

The core advantage OEM insurers have over traditional carriers is data depth. When you buy insurance from your car's manufacturer, they already have access to every sensor, every alert, and every system interaction your vehicle generates.

What Data Is Tracked?

This granular data allows OEM insurers to build a far more precise picture of your actual risk compared to traditional insurers who estimate risk based on demographic proxies. Learn how ADAS features affect insurance rates and why calibration costs after a claim have surged in 2026.

Privacy Tradeoffs and Regulatory Scrutiny

The same data richness that enables better pricing also raises serious concerns, and regulators are taking decisive action. The May 2026 California penalty against GM was, per state authorities, the largest ever under the California Consumer Privacy Act. Combined with the January 2026 FTC order, the message is clear: automakers cannot quietly monetize your driving data anymore. According to the FTC's complaint, consumers have experienced loss of auto insurance and unexpected premium increases as a direct result of this kind of data sharing.

Before enrolling in any OEM insurance program, consider these real risks:

• Data monetization: Who owns your driving data, and can it be sold to third parties?
• Claims disputes: Could your own vehicle's data be used against you in a claims investigation?
• Regulatory exposure: Enforcement of claims-handling rules is tightening in states like California.
• Liability in autonomous driving: As automation increases, data may be used to determine fault between driver and software.

You can also explore how software-defined vehicles are reshaping OTA update liability and cybersecurity risks.

OEM Insurance vs. Traditional Insurance: Costs and Coverage

What Does OEM Insurance Actually Cost?

For EVs in 2026, full coverage insurance through any provider runs higher than average due to expensive repair costs. In 2026, EVs cost an average of $3,159 per year to insure with full coverage across all model years, per Insurify data, about 42% ($941 annually) higher than the $2,218 gas-car average. MoneyGeek's 2026 dataset places EV full coverage even higher at $3,281 per year, and some Insurify datasets show up to $4,058 (49% above gas cars) depending on model mix.

Here's how Tesla models stack up using the latest 2026 market data:

Tesla Insurance's own pricing can be 20 to 40% below these market averages for safe drivers, thanks to the Safety Score system, with Safety Score 3.0 rewarding FSD-driven miles as perfect scores. However, unsafe drivers may see their premiums climb above market rates. For a full breakdown of EV insurance costs across all brands, see our electric vehicle insurance guide and detailed Tesla insurance cost breakdown.

OEM Parts Coverage: A Hidden Advantage

One major financial benefit of manufacturer insurance is the guarantee of OEM parts in repairs. Traditional insurers often use cheaper aftermarket components to reduce claim costs, parts that may not fit as precisely or carry the same warranty as factory originals.

This guarantee has become significantly more valuable in 2026. The American Property Casualty Insurance Association estimates that a 25% tariff on imported repair parts, all other factors remaining static, could increase auto repair claims costs by 2.7%, which could subsequently be passed on to consumers in the form of an additional $3.4 billion in personal auto premiums. The 25% Section 232 tariff on imported auto parts has been fully active since May 2025 and remains in force in 2026, adding an estimated $80 to $100 per repairable claim. For a deeper look, see our guides on OEM parts coverage and how auto tariffs impact repair costs.

The Future of OEM Insurance

The automaker insurance market is growing fast, and the competitive pressure on traditional carriers is real. The car insurance industry trends shaping 2026 point clearly toward more embedded, telematics-driven, and manufacturer-linked coverage options for consumers.

Expanding Third-Party Competition

OEM insurance is no longer just manufacturer vs. traditional insurer. Third-party insurtechs are now using OEM vehicle APIs to offer aggressive, behavior-based products. Lemonade's Tesla FSD insurance product, which offers 50% off per-mile rates for autonomous miles, is the clearest example yet of how OEM vehicle data is becoming the foundation for next-generation insurance products, even from outside the manufacturer. The program is now live in Arizona, Oregon, Colorado, Indiana, and (as of August 2026) Tennessee. Expect more insurtech carriers to launch similar behavior-based products throughout 2026 and into 2027.

Deeper Integration With Autonomous Driving

As vehicles reach higher levels of autonomy, self-driving car insurance will evolve significantly. The landmark $243M Benavides v. Tesla verdict underscores how liability is increasingly shifting from driver to manufacturer, reshaping how OEM insurers underwrite risk. The federal SELF DRIVE Act (H.R. 7390) continues to sit at the House Energy and Commerce Committee, and regulators continue to debate federal minimums for ADAS performance across new vehicles.

Embedded Insurance Expansion

Rivian and (until recently) Honda represent a newer wave of OEM insurance entrants. Embedded insurance, meaning coverage offered directly at the point of vehicle purchase, is expanding rapidly across the industry. Other automakers have followed suit through partnerships: BMW with Wrisk, Stellantis with Bolttech, and multiple carriers offering dealership-integrated products. Our guide on embedded car insurance explains how these programs at dealerships are changing the way consumers shop for coverage.

What This Means for Consumers

More competition is generally good news for drivers. The rise of OEM insurance programs will pressure traditional carriers to offer better usage-based discounts and more transparent pricing. Smart shoppers should always compare their manufacturer's insurance offering against traditional options. Your vehicle make and model have a significant impact on which insurer will offer you the best rate. You can also review how rising tariff costs continue to impact premiums, and check whether battery coverage is included in your policy if you drive an EV.

Frequently Asked Questions

Q: Is Tesla Insurance cheaper than traditional car insurance? Tesla Insurance can be significantly cheaper for safe drivers, potentially 20 to 40% below market rates, thanks to the monthly Safety Score system. Safety Score 3.0 now rewards FSD (Supervised) miles as perfect 100s, and Tesla stacks an additional discount of up to 10% on certain coverages for FSD use. Third-party competitors like Lemonade also offer pay-per-mile Tesla policies with up to 50% off for FSD-engaged miles in Arizona, Oregon, Colorado, Indiana, and Tennessee. Always compare quotes from multiple insurers before committing, as traditional rates vary widely by ZIP code and driving history.

Q: What data does GM Insurance collect through OnStar? GM Insurance uses the OnStar telematics platform to monitor driving behaviors including acceleration, braking, cornering, speed, seat belt usage, and mileage. In January 2026, the FTC finalized a landmark settlement against GM and OnStar for collecting and selling this data without adequate consumer consent, and California added a $12.75 million CCPA settlement in May 2026. GM must now obtain affirmative express consent for 20 years before collecting or sharing vehicle data, and it is banned from selling driving data to consumer reporting agencies for 5 years.

Q: Can I still get Honda Insurance Solutions in 2026? No. Honda paused its Honda Insurance Solutions marketplace in July 2026, about one year after its July 2025 launch, and is no longer accepting new customers. Existing customers continue to be serviced by their original carriers or VIU by HUB, but new policies are not available through the Honda platform. Honda has said it plans to reshape its future insurance experience, but no relaunch date has been announced.

Q: Why does manufacturer insurance guarantee OEM parts in repairs? When you're insured through your vehicle's manufacturer, there is a strong business incentive to use original factory parts. It protects the brand's reputation and ensures vehicles are restored to their original safety specifications. Traditional insurers typically default to cheaper aftermarket parts to reduce claim costs, which can affect fit, function, and even warranty coverage. This benefit is especially valuable in 2026, as 25% Section 232 tariffs on imported auto parts continue to push repair costs higher.

Q: Should I switch to my car manufacturer's insurance program? It depends on your driving habits, privacy comfort level, and which states the program operates in. If you're a consistently safe driver who values seamless claims handling and guaranteed OEM parts, a manufacturer program could offer significant savings. Tesla Insurance now operates in 15 states, GM Insurance is available in 18 states (California not yet available), and Rivian Insurance is available nationwide. Be aware of the FTC and California actions against GM and OnStar. Regulators are scrutinizing how OEM programs collect and share your driving data. Always compare at least 3 to 4 quotes before deciding.