Video: Reduced insurance for drivers who drive less

Drivers who use OnStar vehicle communication technology can calculate their miles and receive special discounts on their car insurance, General Motors reports. Most insurance companies base coverage rates on the average miles a driver travels each year. In the U.S., the average vehicle treks between 15,000 and 20,000 miles a year. This means drivers who travel less generally have to pay more per mile for insurance. However, GM reports a new partnership between GMAC Auto Insurance and OnStar will offer a low mileage discount for drivers using the vehicle communication technology. By determining the exact number of miles traveled via OnStar reports, GMAC Insurance will offer reduced rates to eligible drivers.