National General Pay-As-You-Go (PAYG) Review

Get a Low-Mileage Discount of Up to 50%

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In recent years, many insurance companies have jumped on the bandwagon of offering insurance customers increased savings by using pay-as-you-go insurance. Pay-as-you-go insurance, also known by many other names including usage-based insurance or pay-as-you-drive insurance; can offer substantial savings for auto owners who demonstrate safe driving habits or simply do not drive their vehicles very much.

National General Insurance Company was one of the first insurers to offer pay-as-you-go insurance. National General, formerly GMAC Insurance, began in 1939 and has an “A-“ Excellent rating with A.M. Best insurance rating organization.

The National General pay-as-you-go program is available to residents of 35 states and has approximately 30,000 subscribers nationwide.

How It Works

National General’s PAYG program operates using an existing OnStar system to track a driver’s distance. All you need to participate in the program is have a National General auto insurance policy and to have an OnStar system in your vehicle. Many vehicle models already come with an OnStar system including newer model vehicles manufactured by Chevrolet, Buick, General Motors or Cadillac. Getting the discount is pretty simple. You just let National General know you are an OnStar customer and the insurance company will gather the necessary data from OnStar.

National General wants its customers to know that the only driving metric measured to qualify for a discount is mileage, unlike many other companies who gather driving habits such as sudden braking or acceleration. Also, no other information is gathered or shared with third parties.

Potential Savings

According to the National General website, auto insurance customers using its PAYG OnStar program can realize potential auto insurance discount savings of up to 50 percent.

This is a substantial savings and makes it worth giving this program a second look. Most drivers can expect the savings to be less as the 50% or greater discount goes to those drivers with 2,500 miles or less per year. For drivers who drive anywhere from 10,000 to 15,000 miles per year, the savings will be closer to 10 to 20 percent. Another point to keep in mind is that if you do not already have OnStar, you will have to subscribe which can cost as much as $200 annually.

Here is a break-down of how much you can save with the low-mileage discount through National General:

  • 0-2,500 miles per year: 54% discount
  • 2,501-5,000 miles per year: 39% discount
  • 5,001 to 7,500 miles per year: 34% discount
  • 7,501 to 10,000 miles per year: 26% discount
  • 10,001 to 12,500 miles per year: 18% discount
  • 12,501 to 15,000 miles per year: 13% discount

The Bottom Line

If you already have OnStar installed in your vehicle and are a low-mileage driver, there is no reason not to try the National General Pay-As-You-Go program. Depending on how low your mileage actually is, you can save as much as 50 percent on your auto insurance premium. National General guarantees the confidentiality of your information and does not share with any third parties according to its website.

If you do not already have OnStar, you will have to have it installed and subscribe to participate in the program which can cost up to $200 annually. The greatest savings will go to those who drive less than 2,500 annually (50 percent discount); while those who drive 10,000 to 15,000 miles per year can expect to save 10 to 20 percent on their auto insurance premium.

Contact Information

If you would like to learn more about National General’s pay-as-you-go program, you can visit the National General Insurance website and read about the low mileage discount.  You can contact National General Insurance Company by calling 1-800-462-2123. You can get an auto insurance quote online and find out all of the discounts you may qualify to receive.