Ford, State Farm Partner for Car Insurance Program
【Summary】Tesla has some new competition on the insurance front, as Ford and State Farm have come out with a new usage-based car insurance program for Ford and Lincoln owners with eligible 2020 or newer vehicles.

Tesla isn't the only automaker that will offer car insurance to its owners. Ford is entering the insurance game with a partnership with State Farm. The insurance program is called Drive Safe & Save Connected Car. It's only available to consumers of Ford and Lincoln owners and, at the time of launch, in a handful of states.
Tesla Has Some Competition
Initially, Ford and State Farm's insurance plan will be available in Alaska, Montana, Idaho, and Oregon starting on February 27. The two companies plan to expand the program to other states, though California, Rhode Island, and Massachusetts are on the no-fly list for unnamed reasons.
In addition to being only available in a few states, there's a restriction on what kind of vehicles owners must have to be eligible to use the two companies' usage-based insurance program. Drivers must own an eligible Ford or Lincoln that's from 2020 model year and newer. Ford refers to these cars as "connected vehicles," though doesn't exactly expand on that front.
The connected vehicles will be able to share information directly with State Farm. Ford didn't say what kind of information the vehicles will share with the insurance company, but things like speeding habits, aggressive braking, and how quickly a driver takes turns could be shared.
Good Drivers Could Save Money
The sharing of information goes two ways. While the vehicles are providing State Farm with information, drivers will be receiving tips on how to improve their driving behaviors. If they follow these tips, drivers can reduce their insurance premiums. Greater discounts are available to drivers that improve their driving behaviors, too.
"Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics," says 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 and 15%, with even higher discounts possible depending on individual driving behaviors."
Ford didn't provide any information on what kind of premiums the average driver could be looking at. One of the major issues with usage-based insurance programs is that they depend heavily on the way a driver, well, drives. People that drive aggressively will want to stick with their regular insurance, but for consumers that believe they can fit within whatever parameters Ford and State Farm come out with, especially for current State Farm policyholders, should check out the Drive Safe & Save program when it and if it expands to their region.
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