Ford and State Farm offer usage-based auto insurance for newer vehicles

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If you own a 2020 GT350, this usage-based insurance program probably isn’t for you.

Jon Wong/Roadshow

Based on usage car insurance is kind of a touchy subject for a lot of people. Many people don’t like the idea of ​​having their driving habits monitored, even if they are safe drivers. Others welcome the chance to get discounts based on their drivingand Ford, along with State Farm, is looking to capitalize on that with its new Drive Safe & Save program, which it announced on Tuesday.

The program is initially offered in Alaska, Idaho, Montana and Oregon, with expansion to most of the rest of the country likely to follow. Owners of 2020 or newer Ford and Lincoln vehicles can enroll in the program starting February 27 if they are already State Farm customers.

“Customers can better manage their auto insurance premium because their rate will be more closely tied to their personal driving characteristics,” Chris Schell, State Farm’s senior vice president of property and casualty, said in a statement. “Drive Safe & Save represents a significant automotive rebate opportunity, including an initial 10% participation rebate on major coverages. Rebates average between 10% and 15%, with even higher rebates possible depending on individual driving behaviors.

The flip side is that if your driving behavior deteriorates, you might consider rate increases. Are sudden stops and big prizes at red lights among your favorite road activities? Then this is probably not the program for you. However, if you’re taking your hybrid Maverick around town at a more relaxed pace, the savings might be worth it.


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