NU Online News Service, May 30, 2:05 p.m. EDT
Ford and State Farm are rolling out a program through which drivers use a Ford feature to send verified odometer readings to State Farm in exchange for lower premiums for low-mileage drivers.
The initiative uses Ford SYNC technology to expand State Farm Insurance's Drive Safe & Save program, which is the insurer's telematics-based pay as you drive program.
Ford SYNC is an in-car connectivity system that provides drivers with the ability to use voice commands to control their mobile devices, like cell phones and MP3 players. SYNC also provides services such as 911 Assist—an emergency calling feature—and Vehicle Health Report.
The collaboration with Ford allows State Farm customers with SYNC-equipped Ford vehicles to use the Vehicle Health Report feature to report their mileage.
Vehicle Health Report allows owners to request diagnostic reports about a vehicle's performance and maintenance needs.
According to literature supplied by Ford, vehicle owners are able to generate vehicle reports through voice commands in the vehicle or on Ford's website. A representative explained further that an odometer reading from the report is then made available to State Farm through a dedicated web server so State Farm can access it to check against the customer enrolled in the Drive Safe & Save program.
Since Vehicle Health Report pulls the odometer reading directly from the engine computer, the mileage from the report is considered verified and can qualify the vehicle for Drive Safe & Save.
The number of miles driven would determine the magnitude of the savings. Those choosing to enroll in the program will initially save about 5 percent on their auto insurance coverage.
The amount of premium savings will be determined at each renewal date (every six months) based on the number of miles driven during that period. Those driving the national average of 1,000 miles per month will typically save around 10 percent, but that could change depending on actual mileage driven, with low-mileage drivers saving up to 40 percent.
"We're excited to have Ford as a partner in this effort," says State Farm Senior Vice President Mike Wey in a statement. "State Farm is always looking for better ways to serve our customers."
"We're very pleased to be working with State Farm to lower the cost of vehicle ownership for the 3 million Ford SYNC owners who are driving vehicles with the Vehicle Health Report feature," says 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's Drive Safe & Save program for Ford SYNC launched in Utah on May 28 and will migrate to other states throughout the year.
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