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 mid-2026, Tesla Insurance is available in 15 states: Arizona, California, Colorado, Florida, Illinois, Indiana, Maryland, Minnesota, Nevada, Ohio, Oregon, Tennessee, Texas, Utah, and Virginia.

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.

California exception: Tesla Insurance offers an insurance product in California that does not use Safety Score to determine your monthly premium. Safety Score is available in California 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. Insurer Lemonade has introduced a 50% per-mile rate cut for Tesla FSD users in Arizona and Oregon, backed by real fleet data showing FSD is twice as safe as average human driving. The AI-driven insurer launched what it calls Lemonade Autonomous Car insurance in January 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 expanding state by state, with Florida added as its "newest state" and more expected soon. 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 20-year requirements 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 $12,750,000 to resolve allegations that it unlawfully sold driving and location data of California drivers that GM had collected through its OnStar connected car service, in violation of the California Consumer Privacy Act and the Unfair Competition Law. In the largest proposed settlement under the California Consumer Privacy Act (CCPA) to date, General Motors LLC and its subsidiary OnStar will pay $12.75 million in civil penalties. 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, in July 2026, about a year after launching, Honda Insurance Solutions is no longer in operation. Existing policies remain in force with their original carriers, but you cannot start a new policy through the Honda platform today. 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 states that its vehicle policies are available in all states and Washington D.C. and are designed for Rivian EVs and accessories, powered through partnerships with major carriers. 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. Rivian car insurance averages $276 per month for full coverage and $141 per month for minimum coverage. The overall average across both coverage types is $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.

Privacy Tradeoffs and Regulatory Scrutiny

The same data richness that enables better pricing also raises serious concerns, and regulators are taking decisive action. In the largest proposed settlement under the California Consumer Privacy Act (CCPA) to date, General Motors LLC and its subsidiary OnStar will pay $12.75 million in civil penalties for allegedly collecting, retaining and selling driving data. Combined with the January 2026 FTC order, the message is clear: automakers cannot quietly monetize your driving data anymore.

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.

For more, see our guide on self-driving car insurance. 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. Electric vehicle insurance averages $3,281 per year for full coverage and $1,679 per year for minimum coverage, or $273 and $140 per month. On average, car insurance for an electric car is about $337 per month, or $4,043 per year. It costs about 20% more to insure an electric vehicle (EV) than a gas vehicle, mostly because EVs cost more to buy and repair. Some 2026 datasets show an even wider gap. In 2026, EVs cost an average of $3,159 per year to insure with full coverage across all model years, Insurify data shows. Gas-powered cars cost $2,218 per year on average to insure.

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. 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 average repair bill just hit $838 according to Kelley Blue Book, and parts prices have jumped 25% due to the Section 232 tariff on imported auto components. The 25% tariff on imported auto parts has worsened the situation considerably. Approximately 60 to 75% of U.S. auto parts content is imported. For a deeper look, see our guides on OEM parts coverage and how auto tariffs are driving up 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. 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, which a federal judge upheld on February 20, 2026, denying Tesla's request to overturn a jury ruling of $243 million related to a 2019 incident involving an Autopilot-equipped Model S, 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 advance through the House Energy and Commerce Committee.

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. For context on how safety technology affects your premium, see our guide on ADAS features and insurance rates. You can also review how inflation and rising costs continue to impact premiums in 2026.

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. Third-party competitors like Lemonade now also offer pay-per-mile Tesla policies with up to 50% off for FSD-engaged miles. 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 claims 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 expanding state by state (Florida is its newest addition, California is 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.