Ford and State Farm Launch Drive Safe & Save Usage-Based Insurance

Nobody likes a tattletale, right? But what if the snitch reported the good and bad? And what if that snitch was your vehicle? What if your vehicle, using its highly advanced technology, could perfectly, neutrally, and accurately report your driving behavior according to a set of metrics? It sounds like something out of science fiction, but usage-based insurance (UBI)—that’s what it’s called—already exists. These types of policies use telematics to establish insurance premiums that are more representative of how you drive and how often you drive. The safer you drive, the higher the discount, in theory.

While many insurance companies offer UBI (Progressive Snapshot, Allstate Drivewise/Milewise, Farmers Signal/FairMile, Esurance DriveSense, Nationwide SmartRide/Smartmiles, Liberty Mutual RightTrack, State Farm Drive Safe & Save, GEICO DriveEasy, USAA SafePilot, Metromile per-mile insurance, Root, Noblr, and American Family MilesMyWay), now Ford is getting into the game with a program from partner State Farm. That means State Farm’s Drive Safe & Save UBI program will expand to model year 2020 and newer Fords. It’s launching for policies effective on or after February 27, 2022, and it’s called Drive Safe & Save Connected Car.

Ford’s program is a little different than a “traditional” UBI. For those, data is monitored via an in-car tracking device (telematics box, OBDII port plug-in, OnStar) or smartphone app that uses your phone’s sensors and GPS location (paired with a Bluetooth device or manually logged in to when driving). Data monitored includes: driving habits (hard braking, speeding, acceleration, G-force), mileage, total drive time, nighttime driving, phone use, and more. Enrollment in UBIs is usually free, and they’re touted as generally cheaper (just enrolling provides an immediate discount), assuming the policyholder drives safely. Often there’s an associated mobile app where users can see the data for themselves. You can apparently even participate in some programs (Allstate’s, for example) without having a policy. State Farm’s regular Drive Safe Save UBI program gathers information from OnStar for GM vehicles (assuming there’s an active subscription) or a mobile device that’s paired with a Bluetooth beacon provided by State Farm. The Bluetooth device, which stays in the vehicle, pairs to the app only and automatically allows for the collection of driving data only when you’re in that vehicle.

Ford and State Farm’s Drive Safe & Save Connected Car allows Ford and Lincoln owners to use their vehicles’ embedded connectivity to share information with State Farm directly, eliminating the need for plug-in devices or smartphones to gather and send information. GM has OnStar, but this partnership could be the first time a major manufacturer has worked with an insurer directly on usage-based insurance.

State Farm and Ford’s Drive Safe & Save UBI program will initially launch in Alaska, Idaho, Montana, and Oregon, with more states following. It won’t be offered in California, Massachusetts, and Rhode Island. As a side note, UBIs are prohibited in some states, meaning nationwide availability is not guaranteed.

As for off-roading and track days? Turning off Ford’s telematics doesn’t seem to be an option. Rather, a representative from Ford suggested that customers can opt-out of Drive Safe & Save any time, a decision that might impact discounts and premiums. Maybe a snitching vehicle isn’t the best option for avid fun-havers who frequent the desert or track.

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