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Ford, State Farm Team Up To Bring Customers Usage-Based Insurance Savings

Ford and State Farm have developed a new program that is aimed at saving insurance customers money. The new program, which debuts this week, will reduced customer premiums as driving behaviors improve.
Posted: February 21, 2022 - 11:15AM
Author: Marc Stern

Ford and State Farm have teamed up with a new program to save customers who have purchased eligible Ford and Lincoln vehicles. Those who have purchased those vehicles will benefit from a usage-based insurance (UBI) program.

Ford vehicles are eligible, starting this week, for a usage-based insurance savings in a program that promises savings to customers. Meantime, the Ford Maverick has been named winner of MotorWeek's top honors in its awards program.

Program Adjusts Premiums Versus Mileage

Drive Safe and Save allows State Farm customers with eligible connected vehicles to opt into the program. The program adjusts premiums to an individual vehicle's mileage and the customer's driving record. This week, the program will debut in Alaska, Idaho, Montana, and Oregon. After the initial debut, there will be a rollout across more states. California, Massachusetts, and Rhode Island are excluded from this program.

Under the program, State Farm customers who drive an eligible Ford or Lincoln vehicle can better manage their overall vehicle ownership costs by benefiting from each customer's good driving behavior. As customers' driving habits and behavior improve, the program reduces their insurance premiums.

Eligible 2020 model year and newer connected Ford vehicles can share their information directly with State Farm to enable the Drive Safe and Save plan. The sharing, of course, must be agreed to by the vehicle owner as customers improve their driving behavior, the more significant the insurance discounts.

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

"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."

Customers Will Receive Benefits

"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."

Marc Stern has been an automotive writer since 1971 when an otherwise normal news editor said, "You're our new car editor," and dumped about 27 pounds of auto stuff on my desk. I was in heaven as I have been a gearhead from my early days. As a teen, I spent the usual number of misspent hours hanging out at gas stations Shell and Texaco (a big thing in my youth) and working on cars. From there on, it was a straight line to my first column for the paper, "You Auto Know," an enterprise that I handled faithfully for 32 years. Not many people know that I also handled computer documentation for a good part of my living while writing YAN. My best writing, though, was always in cars. My work has appeared in Popular Mechanics, Mechanix Illustrated, AutoWeek, SuperStock, Trailer Life, Old Cars Weekly, Special Interest Autos, etc. You can follow me on: Twitter or Facebook.