Connected Cars – State Farm and Ford to Offer UBI Coverage

State Farm and Ford said today they will launch Drive Safe & Save for connected Ford or Lincoln vehicles to benefit from usage-based insurance or UBI. State Farm customers can opt into the State Farm UBI program, Drive Safe & Save, which adjusts premiums to an individual vehicle’s mileage and customer driving behavior.

Eligible 2020 Model Year and newer connected Ford and Lincoln vehicles, with the consent of the 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 companies claim.

State Farm will debut Drive Safe & Save in Alaska, Idaho, Montana and Oregon, for policies effective on or after Feb. 27, 2022, followed by a rollout across other states, excluding CA, MA, RI.

“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. “Drive Safe & Save represents a significant auto discount opportunity, including an initial 10% participation discount off major coverages. Discounts average between 10%-15%, with even higher discounts possible depending on individual driving behaviors.”