Ford introduces new technology to help drivers lower their insurance premiums
Famed automaker Ford has developed a new Internet-based technology that could help U.S. drivers save on their auto insurance. Automakers are beginning to play a bigger role in the insurance industry, with many introducing ways for consumers to save on coverage. Some of these companies, such as Ford, have partnered with insurance companies for the benefit of consumers. Ford has teamed with State Farm Insurance to introduce its new Ford SYNC technology, which allows vehicles to connect to the Internet via a mobile device.
System uploads mileage information to State Farm to produce adjusted premiums
Ford SYNC is an innovative telematics system that is designed to record mileage information and provide this data to State Farm. Using this data, the insurance company will adjust a driver’s insurance premiums in real time. This system makes use of hands-free technology that is common in most Bluetooth-based systems that allow drivers to make use of various applications without being distracted from the task at hand.
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Consumers could save up to 40% on their coverage using Ford SYNC
According to Ford, the system could help drivers save as much as 40% on their auto insurance premiums. This estimation is based on limited travel, however, as the company also notes that consumers traveling over 1,000 miles every month will see savings as high as 10%. Ford SYNC ties into State Farm’s latest pay-as-you-go auto insurance policies, which are designed to provide consumers who do not drive often access to affordable insurance coverage.
Popularity of telematics-based insurance coverage on the rise
There are approximately 2 million drivers making use of telematic systems similar to Ford SYNC. These systems operate in a similar manner to Ford’s system, but vary depending on the policies offered by insurance companies. These types of systems are growing in popularity, especially among those looking to save money on their auto insurance. If the growing trend continues, more than 100 million drivers are expected to make use of telematics-based insurance policies by 2020.