State Farm teams up with Ford for usage-based insurance

Usage based insurance - Partnership

The Drive Safe & Save Connected Car program will use telematics tech to adjust premiums.

State Farm and Ford have announced that they have jointly launched a usage based insurance (UBI) program for drivers called the Drive Safe & Save Connected Car.

The UBI program is available to drivers of connected Ford or Lincoln vehicles.

State Farm customers driving the eligible connected Ford vehicles can choose to opt in for usage based insurance. The UBI program uses telematics to adjust premiums to reflect that vehicle’s mileage and its drivers’ unique driving behaviors. In this way, safe drivers with lower mileage and who present a lower risk may have the opportunity to save on their monthly premiums.

The insurer will be debuting the UBI program in Oregon, Idaho, Montana and Alaska to start. It will be available on policies becoming effective on or before February 27, 2022. After that point, the program will continue a gradual rollout across more states, initially including California, Massachusetts and Rhode Island.

Usage based insurance - Ford Steering Wheel

The idea is that drivers of eligible vehicles can use the usage based insurance to manage their costs.

Drivers who opt into the UBI program have the opportunity to keep their overall vehicle ownership costs within their own control. The reason is that when they regularly practice good driving behaviors – or learn to improve them over time – they will be able to reduce their premium.

Eligible vehicles include those from Ford’s 2020 model year and newer. The UBI is not implemented automatically but is an opt-in option that requires the owner’s consent. From that point, the Drive Safe & Save program will share driving and vehicle usage information directly with State Farm, as this is what will provide the data regarding risk or lack thereof. The premiums allow for improvement as the driver adapts to the program and uses safe behaviors behind the wheel more regularly.

“Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics,” said Chris Schell, State Farm Senior Vice President of Property and Casualty when discussing the usage based insurance program. “Drive Safe & Save represents a significant auto discount opportunity, including an initial 10% participation discount off major coverages. Discounts average between 10 and 15%, with even higher discounts possible depending on individual driving behaviors.”

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.