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Ford and State Farm to Offer Usage-Based Car Insurance for Late-Model Vehicles

If you've got a Ford or Lincoln from 2020 or later and you live in Alaska, Idaho, Montana or Oregon then you can participate.

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If you own a 2020 GT350 then this usage-based insurance program probably isn't for you.
Jon Wong/Roadshow

Usage-based car insurance is kind of a touchy topic for a lot of people. Many people don't love the idea that their driving habits are being monitored, even if they are safe drivers. Others welcome the chance to get discounts based on their driving, and Ford, along with State Farm, is looking to take advantage of that with its new Drive Safe & Save program, which it announced on Tuesday.

The program is initially being offered in Alaska, Idaho, Montana and Oregon, with expansion to most of the rest of the country likely to follow. Owners of 2020 or newer Ford and Lincoln vehicles can opt in to the program starting on Feb. 27 if they're already State Farm customers.

"Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics," State Farm SVP of Property and Casualty Chris Schell said in a statement. "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."

The flip side is that if your driving behavior worsens, you could be looking at rate increases. Are hard stops and stoplight grands prix among your favorite road activities? Then this probably isn't the program for you. However, if you putter your hybrid Maverick around town at the most casual of paces, then perhaps the savings could be worth it.

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