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State Farm & Ford Introduce Usage-Based Insurance Program for New Vehicle Owners

State Farm and Ford are launching “Drive Safe & Save Connected Car,” a new usage-based insurance program for State Farm customers who own an eligible 2020 or newer Ford or Lincoln vehicle. The opt-in program adjusts premiums based on vehicle mileage and driving habits.

“Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics,” explained Chris Schell, State Farm SVP of Property and Casualty. “Drive Safe & Save represents a significant auto discount opportunity, including an initial 10 percent participation discount off major coverages.” 

Potential Savings for Ford Owners

Usage-based insurance programs reward customers with lower premiums for good behavior behind the wheel. In essence, the better a person drives, the greater the potential for a premium reduction. “Discounts average between 10 and 15 percent, with even higher discounts possible depending on individual driving behaviors,” Schell said.

The Ford and Lincoln program is an offshoot of State Farm’s current Drive Safe & Save program, which is similar to Progressive Snapshot, Allstate Drivewise, and Nationwide SmartRide. Opt-in programs are ideal for safe drivers, but those who don’t use their vehicle often may benefit as well.

“Pay close attention to your driving habits, especially if they have significantly changed and you are now driving fewer miles than before,” said Robert Lajdziak, Senior Consultant for insurance intelligence at J.D. Power. “Interest in usage-based programs has increased as a result of COVID-19, given that some still expect to be driving less as they are working from home.”

More Resources

Our team has reviewed and evaluated some of the nation’s top auto insurance providers. We conducted individual reviews and compiled a list of the 10 best car insurance companies right now. With regard to State Farm auto insurance specifically, our research found that the average rate across the U.S. for a full coverage policy is around $1,339, much lower than the national average estimate of $1,732.  

Drive Safe & Save Connected Car will debut in Alaska, Idaho, Montana, and Oregon, followed by a more extensive nationwide rollout (although State Farm and Ford said California, Massachusetts, and Rhode Island are excluded).

Photos & Source: Ford Motor Company, State Farm.