The Truth About OnStar

We all have heard of OnStar. Most automotive consumers are aware of what the company offers users and subscribers via the endless number of television commercials produced over the years. They range from humorous Tiger Woods examples to the more serious “We’ve-been-in-an-accident” spots.

I’m going to try not to bore readers a great deal on the specifics of OnStar. What I want to talk about is if this concept really works.

What Is OnStar?

OnStar came into inception in 1996 on higher-end General Motors vehicles and offered drivers hands-free communication as well as an innovative safety device in case the inevitable happens. Today, OnStar has over five million subscribers, is offered in over 50 different GM vehicles, and offers a vast array of options.

How OnStar works is, simply, the system utilizes both Global Positioning Satellites (GPS) as well as wireless phone technology to locate your vehicle wherever you may be and help you receive anything from turn-by-turn directions to vehicle diagnostics to emergency services in case the vehicle has been in an accident.

What Does OnStar Offer?

Surprisingly, a lot. Press the middle blue button located below the rearview mirror and the voice of a human person (not an automated machine) comes through the speakers and assists you with anything you may need, depending on your plan. Directions to Grandma’s? No problem. Traveling and need to make overnight accommodations? OnStar can help you. Engine not running smoothly? OnStar can let you know what is wrong with the vehicle and direct you to the nearest dealership. The system can even unlock your doors if the keys become locked in the vehicle as well as beep the horn if you forget where the vehicle is located. (If subscribed to both OnStar and XM satellite radio, users can access live traffic and weather updates for the city they are located in.)

Additionally, the button with the red cross offers emergency assistance if you are in an accident or need any sort of police/medical assistance. If the vehicle is in a severe accident where the airbags go off, OnStar will automatically call emergency services as well as call you to check on the occupants of the vehicle. If you are the unfortunate victim of car theft, OnStar can track the vehicle and can slow the vehicle down.

Finally, the button on the left controls your hands-free phone. If you so desire, the car’s cellular device can be added on to your Verizon Wireless cell phone plan and use the car’s system instead of trying to drive while trying to hold that little glowing piece of plastic to your face (i.e. much safer). (You may also purchase minutes directly from OnStar as well.)

Costs?

According to OnStar, you can opt for a few different options. For $18.95 per month ($199/year), subscribers have access to all the safety communication features as well as navigation, vehicle unlock and Roadside Assistance. For an additional $10 a month ($28.90/month; $299/year), users can access everything listed above as well as OnStar’s Concierge Service, which is the feature that allows subscribers to find the nearest gas station or check their mutual fund prices on the New York Stock Exchange.

Is OnStar Worth It?

I have had a lot of time to mull this over, and gave the system a thorough test-drive while I was behind the wheel of Automoblog’s 2009 GMC Acadia test vehicle, and I have come to the conclusion that yes, OnStar is a worthy system, but there are some aspects which give me pause.

There are a lot of positives to using OnStar. For one, is so simple to operate. Instead of fumbling around with a GPS system, you simply press a button and let someone else do the work. You still have all the convenience of an everyday system, but it is much easier and much simplier to operate. This is especially critical when you are traveling at highway speeds, where taking your eyes off the road for a split second to fumble with a navigation system, read a newspaper, dial a phone, etc. can lead to an unplanned disaster.

Speaking of safety, the Emergency Services offered should make OnStar important enough to subscribe. Having the comfort to know that if you are involved in an accident, help will be sent whether you call for it or not. In addition, if the car is stolen, OnStar can help you stop the perpetrators from getting away with your vehicle and get it back safely. That would certainly help lower car thefts as well as keep insurance premiums low.

Finally, in today’s world of email, text messages, and other forms of low human interaction, it is reassuring to know when pressing the blue button, there is an actual living, breathing person on the other end. I actually enjoyed the idea of knowing that with one press of a button, someone will be there to help me with whatever I may need. No computers to type to, no automated voices with hundreds of sub-menus to go through.

Don’t let these positives ensue this system in perfect. There are a few minor problems as well as one gaping issue.

First, the price. For a one-year subscription with OnStar, subscribers could purchase themselves a very nice, portable GPS unit, filled with hundreds of thousands of bits of information and technology which is displayed on a crisp color screen instead of on the tiny radio display. It’s not exactly what I would call affordable.

Also, there will be times when the tedious effort of dealing with voice-activated menus. For example, using the telephone feature requires the user to say the number or the pre-stored name, confirm the number/name, and then again confirm to call. And it’s the same if the driver wants to find out the traffic reports.

But the really big issue with OnStar comes from a worry about “Big Brother”. Many speculate that OnStar and GM can use the ability to know where your car is and where you are traveling to calculate data on speed and driving characteristics, which can be used by police and automobile insurance companies to issue fines and increase premiums, depending on the situation.

Last year, GM’s financial branch, GMAC, announced it uses data received by OnStar which allows drivers to receive a discount on their GMAC insurance. What occurs is the driver signs up for the program, where they will receive an 11 percent discount. Then, a monthly statement is forwarded to GMAC with a mileage calculation. The less miles you drive, the bigger your discount is, according to a General Motors press release. To some, this may be a great way to save money. Others see it as another way to pry.

Like everything else in this world, nothing is perfect. There are always going to be concessions. How many, and how large, of a concession are people willing to take for a service that, in theory, works?

OnStar Web site

Great article but I would have to dispute you conclusion that the OnStar system is pricey. I don’t think your comparison to a single GPS unit is fair. I think a better comparison would be:

Non-OnStar

GPS unit $300.00 to $500.00

LoJack System $300.00 to $600.00

Subscription to $100.00 Per Year
Live traffic for GPS

Purchase new Maps $100.00 Every 2 years
For GPS

Hands free Head Set $25.00 to $150.00

Total $775.00 to $1400.00 per year
$150.00 yearly renewal costs

OnStar Package

OnStar $299.00 per year
$28.90/per Month
Subscription to
XM Radio $155.00 year $12.95/per Month

Total $455.00/Per Year
$43.00/per Month

In addition to the above you get emergency road side assistance, Concierge Services, real time mechanical diagnoses and a great radio service with over 170 channels.

Based on the above comparison. It would take you at least 2 year to break even on an individual purchase and you would have to replace much of the above equipment eventually. While OnStar would automatically up-date services as things became available.

Onstar is a corporate rip off. I paid cash for a Silverado over a year ago and did not want the Onstar because it was a work truck and I already had a GPS, but it was free for a year. Two months ago my free year ran out. Did I get a notice, a phone call, an Email? NOOOO! What I got were charges to continue the service on my Visa bill! I imediately called Onstar and told them I had not authorized them to invade my financial network and take money without my permission. The CSR told me they automatically do that because customers want the service! Like hell I do! And where did they get my credit card number from? I did not fill out a release for a credit check because I paid cash! Now the CSR did apologize and stated a refund would show on my next Visa bill, instead I got another charge of $18.95, and not one penny in a refund! Onstar - you are pathetic liars, and after enough people voice their opinions to state attorney generals, congressmen, BBB, and local investigative reporters, your butts might be dodging questions and scandal on CNN. I hope you all burn for the ripping off that some Americans are letting you get away with.

Sorry to hear that, Alan. Unfortunately that’s going to continue to happen until someone, or preferably a group of people get together and file a class-action or something.

do you know how to dis-able On-star, if you do dis-able it, is it completely dead or does it still pulse

yes you can disable Onstar by not buying a GM product-that’s what I plan to do in the future sine GM/Cherolet did not assist me with my problem. As a matter of fact they stated they had no control over Onstar-funny-the people who work for me or are subcontractors on my job site are under my control. GM just washed their hands because they already had my money! By the way I have never gotten 22 MPG in my Silverado-closest was 18.1 MPG. That’s another GM lie! Now that I have ranted I am pissed again-damn!

They could not charge your credit card if you didn’t give it to them initially. It just doesn’t work that way. In fact with just about any reoccurring service they will charge your card until you call and cancel. They do not call you and let you know that your subscription is going to renew. I have had this happen for many subscriptions from Morningstar to Skype. You need to take a breath, calm down and call them and ask them to remove the charges and cancel the subscription (1.888.4.ONSTAR (1.888.466.7827). Write down the name of the person you spoke to and tell them you expect to see the refund on your card. If you are concerned that they will not do as you ask, record the call. Screaming at the attendant accomplishes nothing.
If you want to disable OnStar look at your owner’s manual, find the fuse that powers it and remove the fuse. Though if you cancel the service this seems like a waste of effort to me.
To each there own, but I personally love my OnStar subscription. It has saved my butt on more than one occasion.

Onstar does not give names or Operator ID numbers. Also I am 100% sure that I did not give a credit card since I did pay cash for the vehicle. Nevertheless, as you say to each it’s own, to me Onstar has violated my financial realm without my permission. It is now taken care of but took outside influence to make it happen. Also disabling Onstar????? That’s like not watching television when signed up for cable. Just because you disconnect the cord from the back of the TV doesn’t mean that you do not have to pay. I’m not sure that would have worked. What did work was my calls to my congressman,senator, and the BBB. That’s how far I had to go after numerous calls to incompetent liars at Onstar-so you can see why I was not calm.

I’m sorry to hear you had such a bad experience with them. All of my dealing with OnStar have been very positive. I’m pretty much hooked on it. In fact, I don’t know what I did before I had it. I do a lot of traveling and use it to book my hotels as well as find 24 hour gas stations when I decide to drive like hell to get home early for the weekend. I’ve locked my key in the car once and they helped me out with that etc. I feel like I have my own personal assistance with me. So they defiantly have a good side. Too bad you did get a chance to see it.
Did OnStar try to do anything to make a menses for the mistake? Free gift certificate or something like that. Have you tried writing them to see if they would attempt to try to make things right with you? While I’ve never had to write to OnStar, I have written letters to other company I have had trouble with and have gotten free gift certificates money off my bill etc. You would be surprised what a letter to the customer service people will get you. Anyway it’s a thought.
I agree pulling the fuse would not stop the billing. I wasn’t suggesting that it would I was only answering Curtis’s question regarding how do you disable OnStar (Some people have issues with OnStar. “Big Brother is watch” etc).

Hello,I feel obligated to place my two cents in regarding onstar..For one thing weather you pay cash or not for a gm vehicle you(must)subscribe to onstar to activate it.Even if it is free for the first year you also have to give them your credit card information to activate the system.This is how they have your numbers.Also in the litriture it states if prior cancellation of services is not recieved they will assume you wish to continue services and hence the charges to your credit card.P.S i use onstar in two of my vehicles and feel more secure with it.Regards..

What all of the stories miss is that the onstar hardware in the car costs GM about $1,000, wireless activation and airtime costs another $200 per year, and the call center another $200/year. System design, testing and validation costs are in the $10-100 millions. How can they only charge 199-299/year then you ask? Easy, the rest is baked into the price of the car. Just one of the resons why GM is now bankrupt, etc. All things being equal if GM dumped onstar they could reduce the price of each car by at least $1k. Once you know the true costs involved and the subscription scams they practice, you relaize this is just another corperate fleecing of US citizens.

Absolutely Wayne, couldn’t have said it better myself, however as gulable as the American consumer is, they would buy anything to be hip, or to better their neighbor! And yes GM is union driven, and have CEOs who make way too much in pay and bonuses. like I said in previous memos-I will never buy Gm again and will do everything possible to keep anyone I know from buying the crap they sell!

Anybody who uses the term “financial realm” is probably the kind of guy who wears aluminum hats and thinks the Trilateral Commission is after him *personally*…..

To ” Somebody”-Nice poke at me haha-but we were discussing Onstar-not my personal headgear. LOL Too bad you didn’t leave your name so I would know where that shot across the bow came from. BTW is the Trilateral Commission still active?

Im really concerned with the aggressive and threating behavior some people have. What’s wrong with you people? Everyone has a right to their option, but the aggessiveness is alarming. If you do not like something or disagree with something them SIMPLY remove your self from it. If you don’t like your job you fine a new one right? Well if you do not like ONSTAR than do not sign up for it. What works for one may not work for another, just loss the agressive behavior.