Ford And State Farm Partner To Introduce Tesla-Style Usage-Based Insurance Program

Ford today announced that it will introduce Drive Safe & Save, a usage-based insurance product for Ford and Lincoln vehicle owners with eligible connected vehicles. The insurance will first be introduced in Alaska, Idaho, Montana, and Oregon.

The automaker is partnering with State Farm to start introducing policies in those states as of February 27, 2022, with policies to follow in more states, excluding California, Massachusetts, and Rhode Island.

Drive Safe & Save policies will be available on select model year 2020 and later vehicles. These vehicles will share information directly with State Farm, which calculates the owner’s insurance premium based on vehicle usage and mileage.

Read Also: GM Plans To Introduce Tesla-Style Behavior-Based Insurance Product

State Farm says that customers will get an initial 10 percent participation discount off major coverages and that the best drivers could get discounts of more than 15 percent. Of course, owners’ rates may also rise if their driving isn’t safe enough for the insurer.

“We’re excited about State Farm’s approach of using Ford’s built-in connectivity,” said Alex Purdy, Ford’s director of business operations, enterprise connectivity. “This agreement further builds on our strong and long-standing relationship with State Farm to continue to deliver value for our mutual customers.”

Ford joins GM and Tesla in turning its vehicles’ driving data over to insurers in order to allow them to change drivers’ insurance rates based on it. GM announced in January that it will partner with American Family to offer usage-based insurance in Arizona, Illinois, and Michigan this year.

Tesla, meanwhile, has expanded its offering of usage-based insurance to owners in Ohio and Arizona a few days earlier, in January. It now offers the product in Ohio, Arizona, Illinois, and Texas.

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