• by Tanya Gazdik , February 15, 2022

State Farm and Ford Motor Co. are expanding their partnership providing discounts for safer driving.

Customers with eligible 2020 or newer Ford and Lincoln vehicles can opt into a new usage-based insurance program, Drive Safe & Save Connected Car, which adjusts premiums to an individual vehicle’s mileage and customer driving behavior.

It is debuting Feb. 27 in Alaska, Idaho, Montana and Oregon. followed by a rollout across more states in the spring.

With the consent of the vehicle owner, driving information is shared directly from the vehicle to State Farm. The more customers improve their driving behaviors, the greater the insurance discount they may obtain, according to the companies.  

The program offers a "significant auto discount opportunity, including an initial 10% participation discount off major coverages," says Chris Schell, State Farm senior vice president, property and casualty. 

Discounts average between 10% and 15%, with even higher discounts possible depending on individual driving behaviors, Schell adds. 

Development of the current program began in August 2020, when Ford and State Farm entered into an agreement to share connected vehicle telematics data.   

The two companies partnered in 2012 on an early version of the program that allowed State Farm customers with select SYNC-equipped Ford vehicles to reduce their auto insurance premiums by using the Vehicle Health Report feature to report their mileage. 

Those choosing to enroll in that program initially saved about 5% on their auto insurance coverage. The amount of premium savings was determined at each renewal date (every six months) based on the number of miles driven during that period.