GM Launches OnStar Auto Insurance Services Platform

GM unveiled a digital auto-insurance platform, OnStar Insurance, starting with a soft launch in Arizona for GM employees.
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General Motors  (GM) - Get Report on Wednesday unveiled a new digital auto insurance platform, OnStar Insurance.

A new insurance agency, OnStar Insurance Services, will be the exclusive agent for OnStar Insurance. 

GM customers who subscribe to the OnStar vehicle-safety and -security system will be eligible to receive discounts on their insurance. 

"OnStar Insurance will promote safety, security and peace of mind," said Andrew Rose, president of OnStar Insurance Services.

OnStar Insurance, working with insurance-carrier partners, will take "biased judgment out of insurance shopping," a statement from Detroit-based GM said. 

Starting with Arizona residents, OnStar Insurance will be offered to GM employees this quarter and will expand to the general public in early 2021.

Separately, shares of the electric-vehicle company Nikola  (NKLA) - Get Report jumped on reports that GM agreed to produce the Nikola Badger model using the Ultium battery system. GM will be the exclusive supplier of Hydrotec fuel cells for the company. 

Nikola shares slipped from their highs after both GM and Nikola said they had no news to report, according to Seeking Alpha.

GM said in September that it would pay $2 billion for an 11% stake in Nikola. But a Securities and Exchange Commission investigation into fraud claims that were levied by short seller Hindenburg Research put the deal on hold.

GM shares at last check were rising 4.6% to $43.92. Nikola traded at $25.93, up 18%. The Phoenix company shares have traded on Wednesday up as much as 21% at $26.72.