Usage based insurance supported with Ford Company

State Farm is expanding its Drive Safe and Save usage based insurance program to include cars equipped with Ford’s Sync telematics system.

Also known as “pay as you go,” usage based insurance programs look at how many miles drivers put on their cars and calculate premiums accordingly. Drivers willing to share how many miles they have traveled could get discounts between 10 and 40 percent in exchange for providing the insurer with a more accurate picture of their vehicle-use habits.

Because usage based insurance, Sync’s Vehicle Health Report already keeps track of a car’s mileage, Sync-equipped vehicles from model years after 2009 are ready to report verified odometer readings to State Farm to calculate possible premium discounts. The insurer also offers Drive Safe and Save to drivers who have installed OnStar’s after market FMV mirror in their vehicles. In cars without compatible in-vehicle telematics systems, State Farm requires a driver to plug a data recorder into a car’s OBD II diagnostic port, which then sends mileage reports back to the insurance company. Also Read: Vodafone automotive telematics

For usage based insurance , Sync users, there is no additional cost to join Drive Safe and Save. Premium discounts are calculated every six months when policies are renewed. Though the program will be initially limited to Utah residents, Ford said it would be expanding to other states shortly thereafter.

SOURCE: FORD IN UBI MARKET