What Are Manufacturer Car Insurance Programs?

Manufacturer car insurance programs — often called OEM insurance — are auto insurance products offered directly by automakers or through close partnerships with licensed insurers. Instead of shopping through State Farm, GEICO, or an independent broker, you buy coverage through your car's brand ecosystem, often right inside the same app you use to unlock your doors or check battery range.

The defining feature of these programs is telematics integration. Because modern connected vehicles constantly generate data — from braking patterns to lane changes to miles driven — OEMs can feed that information directly into insurance pricing without a third-party tracking device. This is what separates OEM insurance from a standard usage-based program.

In 2026, a growing list of manufacturers either run their own insurance operations or have embedded third-party coverage into the purchase process. The most developed programs in the U.S. include Tesla Insurance, Rivian Insurance Services, and GM's OnStar-linked data ecosystem, alongside newer embedded partnerships from Toyota, Stellantis, BMW, and Jaguar Land Rover.

How OEM Insurance Works: Telematics, Pricing & the Big Players

Tesla Insurance

Tesla Insurance is the most mature OEM program in the U.S. It uses a system called Real-Time Insurance, which calculates your monthly premium based on a live Safety Score generated directly by your vehicle's onboard sensors. No external plug-in device is needed.

The Safety Score tracks behaviors like hard braking, aggressive acceleration, forward collision warnings, and unsafe following distance. The safer your score, the lower your monthly bill — and your rate can change each month. Tesla Insurance also charges lower administrative fees than traditional insurers, which further reduces the bottom line for qualifying drivers.

How do the numbers stack up? Tesla Insurance averages roughly $169/month for Tesla owners in Texas — compared to the market average of $329/month for the same vehicles. In California, Tesla Insurance averages $187/month, approximately 45% below the state average. For context, traditional full coverage on a Tesla Model X can run $356/month through conventional carriers. For more on EV-specific insurance costs, see our full breakdown of electric vehicle insurance rates.

Rivian Insurance

Rivian Insurance Services offers custom auto policies tailored exclusively for R1T and R1S owners, and is available in all 50 U.S. states plus Washington D.C. What makes it stand out is the Driver Assist Discount — the more frequently you use Rivian's Highway Assist feature (hands-free driving), the larger your discount at renewal. It's one of the first OEM programs to directly reward autonomous feature usage.

Beyond auto, Rivian bundles homeowners, renters, umbrella, and boat coverage through its platform, making it a broader financial product than most OEM programs. The program leverages Rivian's vehicle data to calibrate repair cost assumptions, which can reduce premiums compared to generic insurers unfamiliar with EV parts pricing.

GM & OnStar

GM does not offer a standalone insurance product the way Tesla does, but its OnStar platform is deeply embedded in the insured driving ecosystem. OnStar's Automatic Crash Response, GPS tracking, and driving behavior data can qualify GM vehicle owners for discounts with partner insurers. GM has also been expanding data-sharing infrastructure across 18 states that feeds into insurance pricing models. Learn more about how telematics programs work and how they affect your rate.

Other OEM Embedded Programs

Stellantis has partnered with Bolt to provide embedded insurance across its Chrysler, Dodge, Jeep, Ram, Fiat, and Alfa Romeo brands. Toyota works with Toggle (a Farmers Insurance company) to offer coverage at the point of purchase. These aren't manufacturer-run insurance companies — they're curated, seamlessly integrated third-party options baked into the buying experience. The embedded insurance market in North America is estimated at $28 billion in 2026, with major growth projected through 2030.

Pros and Cons of Manufacturer Car Insurance Programs

OEM insurance isn't a no-brainer for every driver. Here's a full look at the trade-offs:

One significant caution: because your premium is calculated in real time, a bad month of driving can immediately raise what you pay the following billing cycle. Traditional insurers typically re-evaluate rates at renewal — giving you more stability in the short term. Understanding how telematics affects your privacy and your rate is critical before enrolling in any usage-based program.

Who Should Consider OEM Insurance — and Who Shouldn't

Best Candidates for Manufacturer Insurance

• Safe, low-risk drivers who will consistently score well on telematics-based safety metrics
• EV owners whose vehicles are already deeply integrated with the manufacturer's app ecosystem
• New car buyers who want to start coverage at delivery with minimal friction
• Rivian or Tesla owners looking for OEM-aware repair networks and brand-specific claim handling

Stick With Traditional Insurance If…

• You own vehicles from multiple brands and want to bundle for multi-car discounts
• You live in a state where the manufacturer's program isn't available
• Your driving habits are inconsistent and you prefer rate stability at renewal
• You want to comparison-shop multiple carriers through an independent agent

Price Comparison at a Glance:

Rates vary by state, driving record, age, and coverage selections.

The numbers favor OEM insurance for safe Tesla drivers — but traditional carriers remain highly competitive, especially for drivers who qualify for bundling, loyalty, or profession-based discounts. Always compare before you commit. Our guide on car insurance industry trends in 2026 breaks down how rates are shifting across the board.

The Future of Embedded Insurance: What's Coming

The broader shift happening behind OEM programs is called embedded insurance — integrating coverage into the moment you buy or interact with a product, rather than treating it as a separate purchase. By 2025, an estimated 90% of new U.S. vehicles sold are connected cars, creating a massive infrastructure for real-time, data-driven insurance.

Embedded insurance opportunities at dealerships grew 3x since late 2023, with dealers reporting 18–31% higher F&I (finance and insurance) gross per deal when embedded programs are offered. For consumers, that convenience comes with a reminder: embedded options presented at the point of sale may not always be the cheapest choice available.

As software-defined vehicles evolve and autonomous features become more common, OEM insurance will likely become the default for many EV buyers. Learn more about how software-defined vehicles are reshaping insurance and what coverage gaps to watch out for. And as liability shifts with advancing autonomy, explore our deep dive into autonomous vehicle insurance for the full picture of where the industry is headed.

Frequently Asked Questions

What is a manufacturer car insurance program?

A manufacturer car insurance program is an auto insurance product offered directly by an automaker (like Tesla or Rivian) or through a curated partnership with a licensed insurer (like Toyota's partnership with Toggle). These programs are typically integrated into the brand's app or vehicle purchase process and often use real-time telematics data from the vehicle to calculate premiums. They're designed to be seamless for owners of that specific brand.

Is Tesla Insurance cheaper than traditional car insurance?

For safe drivers, Tesla Insurance can be significantly cheaper. In Texas, Tesla Insurance averages around $169/month for Tesla owners, compared to a market average of $329/month for the same vehicles. In California, it runs approximately 45% below the state average. However, rates are calculated monthly based on your real-time Safety Score, so they can fluctuate if your driving habits change.

Can I get Rivian Insurance in any state?

Yes — Rivian Insurance Services is available in all 50 U.S. states and Washington D.C., making it one of the more broadly available OEM programs. It covers auto, homeowners, renters, umbrella, and even boat policies, allowing Rivian owners to bundle their coverage in one place. A unique feature is the Driver Assist Discount, which rewards frequent use of Rivian's Highway Assist feature with discounts at renewal.

What is embedded car insurance at point of sale?

Embedded insurance means coverage is integrated directly into the vehicle buying process — either at the dealership, through the manufacturer's app, or during an online purchase. Instead of shopping for insurance separately, you're offered real-time quotes from partner insurers during checkout. Brands like Toyota, Stellantis, and Jaguar Land Rover have all launched embedded programs with insurer partners. It's convenient, but you should still compare rates independently before committing.

Should I buy insurance from my car manufacturer or a traditional insurer?

It depends on your situation. OEM insurance tends to be most advantageous for safe EV drivers who are already deep in that brand's ecosystem and want a seamless, telematics-based experience. Traditional insurers are often better for drivers with multiple vehicles, those who qualify for bundling discounts, or anyone who wants rate stability without monthly fluctuations tied to a Safety Score. The best move is always to get quotes from both and compare coverage on equal terms.