State Farm announces huge new Ford partnership

State Farm announces huge new Ford partnership | Insurance Business America

State Farm announces huge new Ford partnership

State Farm Insurance is teaming up with Ford Motor Company to provide the latter’s drivers with a new usage-based insurance (UBI) product.

The insurer’s new “Drive Safe & Save” solution adjusts policyholders’ premiums to their vehicles’ mileage and their driving behaviors, utilizing Ford’s onboard connected vehicle technology to track these metrics. State Farm customers that drive an eligible Ford or Lincoln vehicle from the 2020 model years or newer can participate in the UBI program; they will have to give their consent to share information directly with the insurer to enable “Drive Safe & Save.”

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

Schell added that drivers participating in the program can receive discounts between 10% and 15%, and can get even higher discounts depending on how safe their driving behaviors are.

“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,” commented Ford Motor Company director of business operations, enterprise connectivity Alex Purdy. “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.”

According to State Farm, “Drive Safe & Save” will debut first in Alaska, Idaho, Montana and Oregon, and for policies that are effective on or after February 27, 2022. The insurer has also revealed plans to roll out the UBI product in other states, with the exclusion of California, Massachusetts, and Rhode Island.