What Are Manufacturer Car Insurance Programs?

Manufacturer car insurance programs — also called OEM insurance — are auto insurance products sold directly by automakers or through insurer partnerships they control. Instead of buying coverage from a traditional company like Geico or Progressive, you buy it from (or through) the company that built your car. These programs use real-time data from your vehicle's built-in sensors to price your policy based on how you actually drive, not just demographic averages.

The concept isn't entirely new, but it has accelerated dramatically. As more vehicles become software-defined and always connected, automakers sit on a goldmine of precise driving data — and they've started monetizing it through insurance. Embedded car insurance offerings are growing so fast that analysts project the global embedded insurance market at $188.69 billion in 2026 and growing at a 30.47% CAGR through 2035.

Which Automakers Offer Their Own Insurance?

Several major manufacturers now have active insurance programs in the U.S. The table below summarizes what's currently available:

Tesla Insurance: The Industry Leader

Tesla's program is the most advanced OEM insurance offering in the U.S. It uses real-time telematics pulled directly from the vehicle's Autopilot and sensor suite to generate a weekly Safety Score (0–100) that directly determines your monthly premium. Metrics tracked include forward collision warnings, hard braking, aggressive turning, unsafe following distance, and forced Autopilot disengagement. Safe drivers are rewarded with lower rates — and the score updates continuously. In a significant 2025 milestone, Tesla began self-underwriting its own policies starting in February 2025, further deepening its control over the product. Learn more about how Tesla compares to traditional EV insurance.

GM General Motors Insurance (Formerly OnStar Insurance)

GM's insurance program — rebranded from OnStar Insurance to General Motors Insurance in January 2024 — leverages GM's long-running connected vehicle platform to offer personalized auto coverage. It tracks driving behaviors like hard braking, rapid acceleration, swerving, and seatbelt use to potentially offer discounts for safe drivers. The program launched in Arizona, Texas, and Illinois, with expansion to additional states ongoing. Importantly, a landmark January 2026 FTC consent order banned GM and OnStar from sharing geolocation and driving behavior data with consumer reporting agencies for 5 years (through January 2031), and imposed 20-year requirements for affirmative consumer consent — a major privacy protection win for policyholders. Learn more about telematics car insurance programs and how they affect your rates.

How OEM Insurance Works: The Data Engine Behind It

The foundation of every manufacturer insurance program is vehicle telematics — technology that captures and transmits driving data from embedded sensors directly to insurers or manufacturers.

Here's how the process flows:

1. Data Collection — OEM sensors capture speed, hard braking events, rapid acceleration, cornering, GPS location, mileage, idle time, and even ADAS (advanced driver assistance system) activation in real time.
2. Secure Transmission — Data is sent via cellular or Wi-Fi from the vehicle to cloud servers for processing.
3. Risk Profiling — Analytics platforms build a personalized risk profile from your driving patterns, flagging unsafe behaviors and rewarding safe ones.
4. Dynamic Premium Setting — Your rate is tied directly to your actual driving, not just your zip code, age, or credit score.

OEM telematics has a significant accuracy advantage over aftermarket solutions (like plug-in dongles) because the data comes directly from factory-integrated sensors — no hardware to lose or forget. This also means there's no extra device to install. However, OEM data is generally only available on vehicles manufactured after 2014, when embedded telematics systems became more standardized. By 2025, 90% of new U.S. vehicle sales are connected cars, making this model increasingly viable.

Understanding how usage-based car insurance programs work can help you decide if this model is right for you before committing to any program.

OEM Insurance vs. Traditional Insurance: Pros & Cons

Before switching your policy, it's essential to weigh the full picture. Manufacturer insurance has real advantages — but also meaningful drawbacks.

Pricing: How Does OEM Insurance Compare?

The national average for full-coverage car insurance in 2026 ranges from $2,496 to $2,930 per year depending on the source and methodology — up noticeably from prior years. EVs and high-tech vehicles typically cost 20–49% more to insure than the average gas-powered car. Tesla vehicles, for example, average $4,149/year from traditional insurers, though rates vary significantly by model and state.

Drivers of electric vehicles or vehicles with advanced driver assistance features may find OEM programs more aligned with their actual risk profile than traditional insurers. Software-defined vehicles also introduce new coverage considerations that OEM programs are often better positioned to handle.

Who Should (and Shouldn't) Consider OEM Insurance?

Not every driver will benefit from switching to a manufacturer program. Here's a straightforward breakdown:

Consider OEM Insurance If You:

• Drive safely and consistently (few hard braking events, low speed incidents)
• Drive low annual mileage
• Own a newer connected vehicle (2015 or newer)
• Want coverage tailored to EV charging equipment or ADAS technology
• Value a frictionless, app-based insurance experience

Stick with Traditional Insurance If You:

• Live in a state where OEM programs aren't available
• Have a driving history with incidents or violations (rates may not improve)
• Want to bundle auto with home or life for multi-policy savings
• Drive an older vehicle without embedded telematics
• Value comparing quotes across many carriers to find the lowest rate

Future Trends: Embedded Insurance at Point of Sale

The next evolution of manufacturer insurance is happening right at the dealership — or the digital checkout. Embedded insurance integrates coverage directly into the vehicle purchase flow, so you can buy your car and your insurance in one seamless transaction. Learn more about embedded car insurance at the dealership.

Key trends shaping this space through 2030:

• Point-of-sale integration: Automakers and dealers are embedding insurance quotes into digital buying platforms — you finance the car, then add insurance in the same session.
• Pay-as-you-drive growth: Software-defined vehicles (SDVs) enable real-time risk tracking, supporting hyper-personalized premium pricing.
• Market explosion: The global embedded insurance market is projected to grow from $144.62 billion in 2025 to over $2 trillion by 2035, with automotive holding roughly a 30% share. In the U.S. alone, the market is expected to reach $710 billion by 2035.
• Connected car dominance: By 2025, 90% of new U.S. vehicle sales are connected cars, accelerating the shift toward embedded and usage-based insurance.
• Privacy regulation: The FTC's January 2026 consent order against GM/OnStar signals growing regulatory scrutiny of how automakers handle driving data — with a 5-year ban on data sharing with consumer reporting agencies and 20 years of affirmative consent requirements.

Explore how AI is reshaping car insurance pricing and how car insurance industry trends are evolving in 2026.

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 — or through an insurer partnership the automaker controls. These programs use telematics data from your vehicle's built-in sensors to personalize your premium based on real driving behavior. Tesla Insurance, GM's General Motors Insurance, and Rivian Insurance are the most prominent examples in the U.S. market today. Tesla went a step further in February 2025 by beginning to self-underwrite its own policies, giving it even more control over pricing.

Is Tesla Insurance cheaper than traditional car insurance?

It depends on your driving behavior and state. Full-coverage insurance for a Tesla averages around $4,149/year from traditional insurers — well above the national average of $2,497–$2,930/year for all vehicles. Tesla Insurance uses a real-time Safety Score that can reward safe drivers with lower premiums, potentially undercutting traditional rates. However, the best approach is always to compare Tesla Insurance against at least two to three traditional quotes before committing.

What happened with the GM OnStar FTC case?

The FTC finalized a consent order against GM and OnStar in January 2026, settling allegations that they collected and sold precise driver geolocation and behavior data without adequate consumer notice or consent. The order bans GM from sharing this data with consumer reporting agencies for five years (through 2031), and imposes 20-year requirements for affirmative consumer consent. GM is also required to give consumers tools to access, delete, and opt out of data collection. No monetary fine was imposed, but the compliance obligations are binding and long-term.

Can I get OEM insurance if I don't own that brand's car?

Generally, no. Most manufacturer insurance programs are designed for — and often limited to — owners of that automaker's vehicles. Tesla Insurance is only available to Tesla owners, and GM Insurance is structured around GM-brand vehicles. Rivian Insurance operates as a licensed agency across all 50 states but is focused on Rivian owners. The telematics advantages of OEM programs are best realized within the brand's own vehicle ecosystem.

What is embedded insurance at the point of sale?

Embedded insurance means auto coverage is integrated directly into the vehicle buying process — you purchase your car and your insurance policy simultaneously through the dealer's or automaker's digital platform. This model is rapidly growing, with the global embedded insurance market projected to grow from $144.62 billion in 2025 to over $2 trillion by 2035, and the automotive segment commanding approximately 30% of that share. Automakers like Stellantis and Toyota are already partnering with insurers to offer instant coverage at checkout.