Bloomington, Ill.-based State Farm and car manufacturer Ford (Dearborn, Mich.) have announced a usage-based insurance partnership.
Owners of vehicles equipped with Ford's Sync technology can use the platform's Vehicle Health Report feature to report their mileage to State Farm via the insurers' Drive Safe and Save program. An amount of premium savings will be determined at each renewal date based on the number of miles driven, with up to 40% savings possible, the company says.
The Vehicle Health Report is a free feature of Sync, which also includes entertainment and roadside assistance capabilities. It pulls the mileage directly from the car's computer, making it a verified source of data for State Farm.
The Ford program is being piloted in Utah and will be rolled out to other states from there. Drive Safe and Save is also available via an aftermarket device manufactured in partnership with Hughes Telematics and by gathering mileage information from vehicles equipped with Onstar.
"We're excited to have Ford as a partner in this effort," State Farm SVP Mike Wey says in a statement. "State Farm is always looking for better ways to serve our customers."
Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio