Ford partners State Farm to roll out insurance discounts for safer driving

Ford Motor Company has partnered with State Farm insurance company to launch ‘Drive Safe & Save’ scheme for customers with eligible connected Ford or Lincoln vehicles. The usage-based insurance (UBI) model will encourage people to drive responsibly and safely.

Eligible State Farm customers will have their insurance premiums adjusted as per an individual vehicle's mileage and customer driving behavior. The scheme will first be introduced in Alaska, Idaho, Montana and Oregon, for policies effective on or after February 27, followed by a rollout across more states in the US. The scheme offers initial 10% participation discount and later discounts average between 10 and 15%, with even higher discounts depending on individual driving behaviors.

Through this scheme, State Farm customers who drive an eligible Ford or Lincoln vehicle can better manage their overall vehicle ownership costs as well as benefit from their good driving behaviors. This will also encourage them to learn to improve their driving habits and in turn, reduce their insurance premium cost.

In order to enable Drive Safe & Save scheme, owners of eligible 2020 Model Year and newer connected Ford vehicles can share information directly with the insurance company. 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," said State Farm SVP Property and Casualty Chris Schell.

Speaking about the insurance scheme, Alex Purdy, Director of Business Operations, Enterprise Connectivity, Ford Motor Company, said, "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."