OnStar Insurance is off to a slow start

Based on a filing in Illinois, OnStar Insurance, GM’s insurance carrier subsidiary, is off to a slow start.

The carrier submitted a rate revision for its car insurance program launched in the state in October of last year, asking to decrease the base rate. In two months, the new program attracted 44 policyholders and the carrier reported $51k in written premiums, which translates to $850 in written premiums per day.

For comparison, Tesla’s insurance program is generating more written premiums per day based on an analysis we did last year.

In the filing, OnStar also mentioned that its conversion rate is below its target. “We have selected a target conversion rate (number of binds divided by the number of completed quotes) that we believe is reasonable for a direct-to-consumer private passenger auto insurer. The conversion rate we are observing is below this target.”

Aside from Illinois, OnStar Insurance is available in two more states – Arizona and Texas.