We recently reported that auto insurance companies would be relying on driver data to determine how much to charge you for your premium. Yet, in the past, it could be a real hassle — requiring the installation of a special box in your car. Now State Farm and Ford are teaming up to turn your smartphone into an auto insurance premium lowering device. Through the “Sync” platform, State Farm will be able to determine: how often you drive, how fast you drive, and how often you slam on your brakes. Sync supports 3G and 4G smartphones and bluetooth technology already, so it’s not much of a stretch.
Drive Less & Save
State Farm will periodically pull data from Sync’s smartphone link. Just for joining the program, customers will receive a 5 percent discount on their premiums. Individuals driving the national average of 1,000 miles per month will qualify for an additional 10 percent discount. Customers who rarely drive could see up to a 40 percent discount on their auto insurance rates! The program is launching in Utah, but will expand to other states.
Drive Safe & Save
For now, State Farm will be just tracking mileage. Ultimately, they plan to track much more, such as acceleration / stopping patterns, where people travel, speed and how often drivers go through stop signs. Businessweek speculates that one day drivers will have a taxi-style meter on their dashboards that tracks how much they’ve ratcheted up their insurance premium based on their driving habits. Would motorists think twice before speeding or slamming on their brakes? The results are yet to be seen, but the use of smartphones can revolutionize what Americans pay in auto insurance.
How To Save Money On Auto Insurance Now…
While waiting for the program to roll out, drivers can get lower auto insurance rates by looking up online auto insurance quotes. It only takes a few moments to see exactly how much one can save by switching providers! Drivers who are interested in making the transition, can elect to have a representative contact them by phone.