Ford, State Farm offer telematics-driven UBI insurance program
By onAnnouncements | Insurance | Technology
Ford Motor Company and State Farm have introduced usage-based insurance (UBI) for drivers of model year 2020 and newer vehicles.
The program, Drive Safe & Save Connected Car, is being introduced in Alaska, Idaho, Montana and Oregon on or after Feb. 27, with other states to come, excluding California, Massachusetts and Rhode Island.
Eligible connected vehicles, with the owner’s consent, will share telematics information directly with State Farm to enable the program, Ford said. Drive Safe & Safe Connected Car adjusts premiums based on customers’ mileage and driving behaviors.
The product appears to be a UBI version of the Drive Safe & Save program that Ford and State Farm announced in 2020. Through that program, developed in partnership with Cambridge Mobile Telematics, drivers could allow the insurer to patch directly into 2020 and newer Ford and Lincoln vehicles to potentially receive discounts on their premiums.
“Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics,” State Farm SVP Property and Casualty Chris Schell said in a statement.
“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,” Schell said.
“Connected vehicles have the potential to deliver great benefits to Ford customers, including the ability to help lower their car insurance premiums through good driving behaviors,” Alex Purdy, Director of Business Operations, Enterprise Connectivity, Ford Motor Company, said in a statement.
“We’re excited about State Farm’s approach of using Ford’s built-in connectivity to offer Ford and Lincoln customers new ways to save money,” Purdy said.
Participation by OEMs to allow the use of their vehicles’ telematics for UBI products has been an accelerating trend. LexisNexis announced in September that Ford would participate in its Telematics Exchange, making the automaker’s connected vehicle data available to insurers for customers who choose to participate.
More information
FAQs on State Farm’s Drive Safe & Save program
https://www.statefarm.com/customer-care/faqs/drive-safe-save
Images
Featured image: A 2022 Ford Maverick Lariat. (Provided by Ford)