State Farm & Ford Working to Lower Insurance Costs - Car Insurance

State Farm customers with Ford models equipped with SYNC will soon be able to save on their policies. (gq.com)

We?ve talked in the past about how motorists can save on their car insurance premiums by converting to a ?pay as you go? or ?pay by the mile? policy using either an add-on device such as Progressive?s Snapshot or through OnStar, which is available on many General Motors cars and trucks.

And now, Ford Motor Company, the second largest automaker in the United States is getting into the act, collaborating with State Farm, the nation?s largest auto insurer.

Owners of select Ford vehicles equipped with Ford?s SYNC will be able to utilize the ?Vehicle Health Report? contained within the SYNC system to report their milage when enrolled in State Farm?s ?Drive Safe & Save? policies.

Like all pay as you go policies, the number of miles driven will impact any potential for savings on a driver?s premiums. Once a policyholder enrolls, they?re given an immediate discount of approximately 5 percent.

Further savings will then be determined by State Farm at each policy renewal date, which typically takes place every six months. Those savings are directly related to the miles driven. If a driver is at the national average of approximately 12,000 miles per year, they can expect to save another 10 percent off their premiums. But those who drive significantly less than that will qualify as ?low-milage drivers? and may see savings that are up to 40 percent off what they paid before.

?We?re excited to have Ford as a partner in this effort,? said State Farm Senior Vice President Mike Wey. ?State Farm is always looking for better ways to serve our customers.?

Ford?s SYNC system is an in-car connectivity solution that allows drivers to use vocal commands to control entertainment options, their cell phones, and MP3 players. Drivers need not take their eyes off the road, as the system can read back emails and text messages, as well as take dictation for responses. It also offers 911 assist, an emergency calling system allowing drivers to contact police and other first responders in the event they need assistance.

But SYNC also offers more?functionality?than just info-tainment. For example, the ?Vehicle Health Report? gives drivers a diagnostic report about their car, as well as?keeping?owners informed of maintenance schedules. It also records milage directly to the car?s engine computer, which means it?s considered ?verified? by State Farm, rather than simply being a user reported figure. Thus, State Farm qualified SYNC for use with their Drive Safe & Save policies.

There?s still no word from the insurer if customers will potentially face increased costs if they?re high milage drivers, but we don?t expect they?d have many takers if that potential exists. But, unlike GM?s OnStar, SYNC doesn?t require owners to pay for the service.

?We?re very pleased to be working with State Farm to lower the cost of vehicle ownership for the three million Ford SYNC owners who are driving vehicles with the Vehicle Health Report feature,? said Doug VanDagens, Ford Connected Services global director. ?SYNC Vehicle Health Report is free for the life of the vehicle, so our customers can qualify for insurance discounts without having to pay a monthly subscription.?

State Farm will begin offering their?Drive Safe & Save program for Ford SYNC for customers in Utah initially, and will then roll it out in other states across the nation.

If you?re a Ford owner and State Farm customer, will you take advantage of this new offering?

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