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  • OK Sharing Your Car's Data? Ford, State Farm Expand Usage-Based Insurance Program

    OK Sharing Your Car's Data? Ford, State Farm Expand Usage-Based Insurance Program
    jerry-reynolds-carprousa-radio-showIf you don’t mind your every move behind the wheel being monitored, this could potentially save you some money.  I can see many people, myself included, that will have some real privacy concerns. 
    - Jerry Reynolds, The CarPro

    You've heard about usage-based car insurance - otherwise known as UBI. It's not a new idea, we even told you about Ford's initial UBI partnership with State Farm in 2020. (Toyota and Nationwide offer something similar with TIMS BrightDrive. ) Well, it's now 2022, and Ford and State Farm are expanding their program to more vehicles with the launch of Drive Safe & Save Connected Car.

    Originally, the program was available for customers of eligible connected 2020 model year Ford and Lincoln vehicles.  Now it expands to 2020 or newer model year eligible vehicles.  Ford says owners can opt into the program that provides discounts for safer driving. The discount will first be offered in Alaska, Idaho, Montana and Oregon.

    What Is UBI?

    The idea behind UBI is that you allow your car to transmit telematics data, like mileage and driving behavior, directly to your insurer. That data in turn impacts what you pay for your insurance premiums. Drivers must consent to the data transmission, of course, and in this case, vehicle information would be shared directly with State Farm to enable Drive Safe & Save.   

    Ford and State Farm say UBI will help owners better manage their overall vehicle ownership costs, by benefiting from their good driving behaviors or learning to improve their driving habits and in turn, reducing their premium.  The more customers improve their driving behaviors, the greater the insurance discount they may obtain.        

    “Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics,” says State Farm SVP Property and Casualty Chris Schell. “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.”

    “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,” said Alex Purdy, Director of Business Operations, Enterprise Connectivity, Ford Motor Company. “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. This agreement further builds on our strong and long-standing relationship with State Farm to continue to deliver value for our mutual customers.”  

    Program Availability

    State Farm will debut Drive Safe & Save Connected Car in Alaska, Idaho, Montana and Oregon, for customers who opt-in with policies effective on or after Feb. 27, 2022.  It will roll out in other states later, excluding California, Massachusetts and Rhode Island.

    Photo Credit:  Ford