Ford launches Tesla-like insurance program with State Farm
Similar to Tesla Insurance, Ford’s Drive Safe & Save insurance program adjusts premiums based on vehicle mileage and driver driving behavior. Tesla Insurance premiums are tied to similar metrics. The maker of the S3XY EV line introduced a safety score system a few months ago directly tied to Tesla Insurance rates.
“Customers can better manage their car insurance premium because their rate will be more closely associated with their personal driving characteristics. Drive safely and save represents a significant automotive discount opportunity, including an initial 10% participation discount on major coverages. Discounts average between 10 and 15 percent, with even higher discounts possible based on individual driving behaviors,” said Chris Schell, senior vice president of State Farm Property and Casualty.
During Tesla’s fourth quarter and full year 2021 earnings call, Elon Musk noted that the company was pushing for California to change its insurance rules and allow IT. Musk argued that Tesla insurance with real-time computing and feedback “encourages safer driving and financially rewards it.”
CA’s insurance commissioner dismissed Tesla’s push for telematics rates shortly after the earnings call. However, California could possibly change its mind now that Ford appears to be following Tesla’s lead.
“Connected vehicles have the potential to provide great benefits to Ford customers, including the ability to lower their car insurance premiums through good driving behaviors. We are excited about State Farm’s approach of using Ford’s built-in connectivity to provide Ford and Lincoln customers with new ways to save money This agreement builds on our strong, longstanding relationship with State Farm to continue to deliver value to our mutual customers commented Alex Purdy, Business Operations Manager, Enterprise Connectivity, Ford Motor Company.
Ford announced that State Farm will roll out the Drive Safe & Save insurance program in Alaska, Idaho, Montana and Oregon. Program policies are effective on or after February 27, 2020.
The Mustang Mach-E maker plans to introduce its insurance program with State Farm in more states. During the TSLA’s latest earnings call, Chief Financial Officer Zachary Kirkhorn said Tesla Insurance is available in five states: Texas, Illinois, Ohio, Arizona and California.
Since the launch of Tesla Insurance, more and more car manufacturers have become involved in car insurance. Besides Ford, Rivian also has its own insurance program. Manufacturer R1T plans to initially offer Rivian insurance in 40 states and eventually expand service to all markets in which its vehicle is available. Customers can get a quote on Rivian insurance when ordering their new vehicle online. In line with its main focus, Rivian insurance also covers off-road equipment, including Rivian accessories such as the camp kitchen and rooftop tent.
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