Who's Offering OEM Insurance — and How It Works

Automakers selling insurance is no longer a futuristic concept — it's happening right now. Tesla, General Motors, Honda, and Rivian have all stepped into the insurance market, using the connected technology already 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.

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. Available in 12 states — including Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia — Tesla prices premiums using a proprietary Safety Score system. This 0–100 monthly score tracks behaviors such as hard braking, aggressive turning, unsafe following distance, forward-collision warnings, and Autopilot disengagement events. No additional hardware is needed; Tesla uses sensors already embedded in the vehicle.

New policyholders start with a default Safety Score of 90, and as your monthly score improves, your premium drops. Tesla also offers a Full Self-Driving (FSD) discount in select states — the more you drive with FSD enabled, the larger your monthly savings. The program is actively expanding, with Florida reportedly in the pipeline as of early 2026.

GM Insurance

General Motors launched GM Insurance through its OnStar ecosystem, covering Chevrolet, Buick, GMC, and Cadillac vehicles from model year 2016 or newer. GM Insurance uses OnStar telematics to monitor driving behavior and base rates on safe driving habits. In a major expansion move, GM Insurance launched in California in March 2026, with coverage now spanning 18+ states. The program prioritizes OEM parts in claims and integrates directly with the vehicle's existing connectivity platform.

Honda Insurance Solutions

Honda entered the insurance space in 2025 through a partnership with VIU by HUB, a licensed omnichannel insurance brokerage. Honda's program covers automobiles, motorcycles, RVs, and more. One standout feature: Honda does not use driving behavior data to set rates, a deliberate privacy-forward differentiator from Tesla and GM. Honda also offers optional OEM parts coverage, ensuring that accident repairs use genuine Honda and Acura Genuine Parts.

Rivian Insurance

Rivian partnered with Nationwide and Cincinnati Insurance to offer usage-based insurance for its electric vehicles, originally available in 40 states. Rivian's program leverages its Driver+ ADAS suite — including adaptive cruise control, automatic emergency braking, and lane keeping assist — to track driving quality. The more a Rivian owner uses these safety systems, the greater their premium discount.

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

The same data richness that enables better pricing also raises real concerns. Your automaker has access to not just where you drive, but how you drive — every second of every trip. This creates potential risks around:

• 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?
• Liability in autonomous driving: As automation increases, data may be used to determine fault between driver and software

Learn more about how autonomous vehicle liability is reshaping coverage responsibilities as these systems become more advanced.

OEM Insurance vs. Traditional Insurance: Costs and Coverage

What Does OEM Insurance Actually Cost?

For Tesla vehicles in 2025–2026, full coverage insurance through any provider runs higher than average due to expensive repair costs:

Tesla Insurance's own pricing can be 20–40% below these market averages for safe drivers, thanks to the Safety Score system. However, unsafe drivers may see their premiums climb above market rates.

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 is especially important for electric vehicles, where battery systems, sensors, and proprietary components are costly and complex to replace correctly.

For a deeper look at why this matters, see our guide on OEM parts coverage and whether the add-on is worth it with a traditional insurer.

The Future of OEM Insurance

The automaker insurance market is growing fast, and the competitive pressure on traditional carriers is real. Here's what the next few years likely hold:

Expansion Into More States

Tesla is actively filing in new states, with Florida the most recent target. GM Insurance now spans 18+ states after its California launch in early 2026. As more manufacturers enter the space, geographic coverage gaps will narrow.

Deeper Integration With Autonomous Driving

As vehicles reach higher levels of autonomy, self-driving car insurance will evolve significantly. Lemonade already cut per-mile rates for Tesla FSD-engaged driving by approximately 50%, citing data showing meaningfully reduced risk when autonomous systems are active. OEM insurers are positioned to leverage this data more directly than any third-party carrier.

New Brands Entering the Market

Honda and Rivian represent a new wave of OEM insurance entrants. Analysts expect more brands — including luxury and EV-focused manufacturers — to launch their own programs as connected vehicle tech becomes universal.

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 telematics discounts and more transparent pricing. Smart shoppers should always compare their manufacturer's insurance offering against traditional options — your vehicle type and make have a significant impact on which insurer will offer you the best rate.

Frequently Asked Questions

Q: Is Tesla Insurance cheaper than traditional car insurance? Tesla Insurance can be significantly cheaper for safe drivers — potentially 20–60% below market rates — thanks to the monthly Safety Score system. However, drivers with aggressive habits may pay more than they would with a standard carrier. It's important to compare quotes from multiple insurers before committing, as traditional rates vary widely by ZIP code and driving history.

Q: What states is Tesla Insurance available in? As of early 2026, Tesla Insurance is available in 12 states: Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. Tesla has been filing applications to expand into additional states, with Florida reportedly next in line. California policyholders use a version of Tesla Insurance that doesn't use the Safety Score for pricing due to state regulations.

Q: Does GM OnStar Insurance track my driving? Yes. GM Insurance uses the OnStar telematics platform to monitor driving behavior, including acceleration, braking, cornering, and mileage. This data is used to calculate your premium. The program is available for GM vehicles from the 2016 model year or newer across Chevrolet, Buick, GMC, and Cadillac brands.

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 on newer vehicles.

Q: Should I switch to my car manufacturer's insurance program? It depends on your driving habits and priorities. If you're a consistently safe driver who values seamless claims handling and guaranteed OEM parts, a manufacturer program could offer significant value. If you drive occasionally, have a unique coverage need, or want to shop across many providers for the best rate, a traditional insurer may still be the smarter choice. Always compare at least 3–4 quotes, including your OEM option, before deciding.