OnStar and GMAC Insurance Offer Break for Low-Mileage Driving

Describing it as "an auto insurance first," GMAC Insurance has hooked up with OnStar to offer discounts on premiums to drivers who don't put a lot of miles on their vehicles.

GM said eligible OnStar subscribers can save up to 54 percent on premiums if they allow GMAC Insurance to track their odometer readings through the telematics service. Drivers who put no more than 15,000 miles a year on their vehicle are eligible for the program.

The program is available in 34 states. Mileage data will come from the monthly vehicle diagnostic e-mail messages that OnStar sends to subscribers. Customers who put more than 15,000 miles per year on vehicles are not penalized. New customers get an automatic 11 percent discount under the program; existing customers get a discount based on their historical mileage.

"No additional data is gathered or used for any purpose other than to help manage transportation costs," GM said in a statement on its Web site.

About 10,000 owners of GM vehicles have participated in a pilot program for the low-mileage discount since 2004.