Video: GMAC Insurance Reveals Ways for Drivers to Cut Costs on the Road

Tue Jul 1, 2008 8:30am EDT

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Insurer Provides Tips to Reduce Transportation Costs and Offers Low-Mileage
Discount

ST. LOUIS, July 1 /PRNewswire/ -- This Fourth of July, as more people
embrace the notion of a "staycation" over their typical holiday travels, GMAC
Insurance offers ways for people to cut back even more on their transportation
costs. The company reveals five tips to reduce the financial strain of driving
and offers OnStar subscribers a Low-Mileage Discount program as well. What's
more, GMAC Insurance invites drivers to compare their transportation usage to
that of the typical workday commuter at www.lowmileagediscount.com.

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    As gas prices continue to rise, drivers are thinking twice before taking
to the road in order to save money. As another way to reduce costs, GMAC
Insurance offers a Low-Mileage Discount to OnStar subscribers in 34 states,
where those who drive less, pay less on their auto insurance. This opt-in
program is the first of its kind leveraging state-of-the-art technology using
OnStar to allow customers who drive fewer miles to benefit from substantial
savings. Eligible active OnStar subscribers simply sign up to save on their
premiums if they drive less than 15,000 miles annually. Subscribers who drive
even less than that can save even more (up to 54%).
    Under the program, new GMAC Insurance customers receive an initial
insurance discount of approximately 26 percent(1) upon enrollment (existing
OnStar customers receive a discount based on historical mileage). With the
subscriber's permission, the odometer reading from his or her monthly OnStar
Vehicle Diagnostics email is forwarded to GMAC Insurance. Based on those
readings, the company will adjust the premium using discount tiers
corresponding to miles driven. Information sent from OnStar to GMAC Insurance
pertains solely to mileage, and no additional data is gathered or used for any
purpose other than to help manage transportation costs. Customers who drive
more than 15,000 miles per year are not penalized. In fact, all OnStar
customers receive an insurance discount simply for having an active OnStar
subscription.
    "Rising gas prices have become a serious issue in this country over the
past year, and it is clear that drivers are cutting back," said John
O'Donnell, vice president, business development, GMAC Insurance. "The
Low-Mileage Discount program allows them an additional financial break if this
is the case. We want our customers to be aware of anything they can do to save
on transportation costs."
    "The Low-Mileage Discount program is another example of how OnStar brings
added value to drivers in GM vehicles," said Tony DiSalle, OnStar vice
president, sales, service and marketing. "Using the technology behind OnStar
Vehicle Diagnostics allows us to verify the actual mileage of a driver, and in
turn provide a unique money-saving benefit to OnStar subscribers who drive
less. In addition to the safety, security and convenience services we offer,
we're helping our subscribers reduce their transportation costs."
    How Does Your Transportation Cost Compare?
    Are you a daily driving commuter, or do you rarely use your vehicle? GMAC
Insurance invites drivers to visit www.lowmileagediscount.com to see where
their transportation usage falls compared to the average driver. Answer just
three easy questions about your driving habits to see how you measure up. The
comparisons will be calculated from Department of Transportation statistics on
regional average gas prices (updated weekly) and the average miles driven per
vehicle type (includes average fuel efficiencies). Then, weigh in with the
online poll on whether or not the number of miles you drive should affect your
insurance premiums.
    Easy Money: Five Ways to Cut Down on Transportation Costs
    As another way to help keep your driving costs down, GMAC Insurance offers
these five tips:
    1. Maintain your vehicle. Keeping up with your vehicle's maintenance can
significantly reduce the cost of future repairs. And if you do the maintenance
yourself, such as changing your own oil, you can save even more. OnStar
Vehicle Diagnostics will tell you exactly when you need to change your oil,
eliminating unnecessary oil changes.
    2. Keep your engine tuned and your tires inflated. Don't make your car
work harder than it has to. A smooth-running engine will increase your
vehicle's miles per gallon. OnStar Vehicle Diagnostics runs monthly checks of
your vehicle's key operating systems and tire pressure.
    3. Clean out your car. If you remove excess clutter from your vehicle, you
can increase your vehicle's miles per gallon by reducing your vehicle's
weight. However, make sure to leave the essentials, such as your emergency
safety kit.
    4. Easy on the gas pedal. If you accelerate hard at green lights and when
traffic lets up, you might want to think twice. Easing off the gas pedal can
increase your vehicle's gas mileage.
    5. Plan your trips. If you can consolidate all the errands you need to run
into one trip, you can significantly reduce the amount of time spent on the
road, and therefore, the amount of gas you use.
    For more information on the Low-Mileage Discount Program, call
(877) 469-5619 or visit www.lowmileagediscount.com.
    The GMAC Insurance Group is one of the largest automobile insurers in the
United States and is a wholly owned subsidiary of GMAC Financial Services.
GMAC Insurance Personal Lines offers a variety of property and casualty
products, including personal auto, RV, motorcycle, commercial auto and
homeowners insurance. With a nationwide network of claims professionals, local
independent agents and a 24-hour, toll-free claims hotline available 365 days
a year, GMAC Insurance provides superior claims service for its customers.
    About OnStar by GM
    OnStar, a wholly-owned subsidiary of General Motors, is the leading
provider of in-vehicle safety, security and communication services. OnStar is
available on more than 50 MY 2009 GM models. OnStar is standard for one year
on nearly all new GM retail vehicles in the United States and Canada. OnStar
provides services to more than 5 million subscribers in the U.S. and Canada.
OnStar ranked at the top of the latest Consumer Telematics Vendor Matrix
released by ABI Research in 2008. More information about OnStar can be found
at http://www.onstar.com/.
    About OnStar Vehicle Diagnostics
    OnStar Vehicle Diagnostics is a service available only from GM, which runs
automatic checks on the vehicle's key operating systems and sends an
easy-to-read email directly to the owner every month.
    1. Average total savings include the Low-Mileage Discount and the OnStar
Anti-Theft Discount combined. The Low Mileage Discount provides savings across
most coverages of vehicle policy. The OnStar Subscriber Discount provides
savings off the Bodily Injury, Comprehensive and Property Damage coverages of
the vehicle policy. Drivers who average fewer than 5,000 miles per year may
receive more than 35 percent in savings. Assumes even distribution of premium
coverages. Discounts across coverages will vary by mileage tier. Must have an
eligible OnStar-equipped vehicle delivered after 4/21/04. OVD required. Not
available in all states.
SOURCE  The GMAC Insurance Group

Tate Strickland of The GMAC Insurance Group, +1-404-210-2395,
Tate.Strickland@GMACInsurance.com
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