State Farm and Ford Partner on UBI for New Vehicle Owners
State Farm and Ford Partner on UBI for New Vehicle Owners
(Image source: Ford/State Farm.)
State Farm (Bloomington, Ill.) and Ford Motor Company (Dearborn, Mich.) have jointly announced the launch of the Drive Safe & Save Connected Car program for customers with eligible connected Ford or Lincoln vehicles, to purchase usage-based insurance (UBI). State Farm customers with eligible connected vehicles can opt into the State Farm UBI program, Drive Safe & Save, which adjusts premiums to an individual vehicle’s mileage and customer driving behavior. State Farm will debut Drive Safe & Save Connected Car in Alaska, Idaho, Montana and Oregon, for policies effective on or after Feb. 27, 2022, followed by a rollout across more states, excluding Calif., Mass. and R.I.
Chris Schell, SVP, Property & Casualty, State Farm.
State Farm says that, through the new program, customers that drive an eligible Ford or Lincoln vehicle can 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. Eligible 2020 Model Year and newer connected Ford vehicles, with the consent of the vehicle owner, can share information directly with State Farm to enable Drive Safe & Save. The more customers improve their driving behaviors, the greater the insurance discount they may obtain, the insurer says.
Significant Discount Opportunity
Alex Purdy, Director of Business Operations, Enterprise Connectivity, Ford Motor Company.
“Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics,” says Chris Schell, SVP, Property and Casualty, State Farm. “Drive Safe & Save represents a significant auto discount opportunity, including an initial 10 percent participation discount off major coverages. Discounts average between 10 and 15 percent, 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,” comments 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.”
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