It’s a pretty short step from here to letting OnStar drivers pay for auto insurance by the mile; that’s a plus everywhere, but especially in states like Michigan, where it would help turn what had been very high fixed costs into proconservation variable ones.

Now if only the state would stop charging all drivers the same flat fee (about $125/yr) for the catastrophic claims fund — put it into the price of gas or something.

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GM’s inspiration was to realize that OnStar’s global positioning satellite technology gave GMAC a reliable, low-cost way to measure the actual mileage of GMAC policyholders, allowing those who drive less to share in GMAC’s reduced underwriting costs. If this cooperative undertaking leads more people to subscribe to OnStar and purchase GMAC auto policies, well, that’s just a chance GM will have to take.

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