A large number of insurance companies offer certain incentive programs for safe drivers. State Farm, the nation’s largest auto insurer, is no exception. The State Farm Drive Safe and Save Program allows policyholders to report their vehicle mileage and cut the cost of monthly premiums significantly. It is another example of a vehicle diagnostic program than can help insurers more accurately access driver risk and reward safe drivers with potentially lower rates.
Other auto insurance company offering vehicle monitoring device programs include the Progressive Snapshot discount and The Hartford TrueLane program. These programs can make pay-as-you-go car insurance a reality.
Less Mileage Means Fewer Accidents
Those who drive fewer miles each month are less likely to be involved in an accident. Vehicle owners can report their mileage each and every month to State Farm and receive future discounts on liability, collision and other auto insurance coverage. The State Farm Drive Safe and Save Program is currently available in:
Most drivers operating a vehicle equipped with OnStar® can qualify for the program. The car’s odometer reading is reported by OnStar® to the insurance company, which then offers the insured a lower premium on the next renewal date. Alternatively, drivers can report their mileage themselves to the company or use the State Farm In-Drive® in-vehicle service system where eligible. When using the Drive Safe and Save Program with In-Drive®, State Farm claims that drivers can save up to 50 percent on their rates.
Using The Vehicle Diagnostics
Drivers maintaining an enrollment with the OnStar® Vehicle Diagnostics program can have their car’s mileage reported automatically to State Farm. In some states the Drive Safe and Save Program involves using a device that is plugged into the vehicle and reports the mileage to the insurance company on a monthly basis.
This In-Drive device also reports acceleration, braking and fuel efficiency. All of these statistics are important to State Farm because the company is able to place safer drivers in a lower risk category.
Substantial Savings For Safe Drivers
In California, drivers participating in the program enjoy an immediate five percent savings on their auto insurance compared to a more traditional State Farm auto policy. After several months of information gathering, drivers may save as much as 10 percent on their annual premiums. These discounts are applied upon renewal of the policy.
In Michigan, customers participating in the program will see similar savings when their policy is up for renewal. Those who drive less than 10,000 miles per year will receive as much as a 12 percent discount on liability, collision and comprehensive insurance rates.
Texas drivers may save as much as seven percent if they drive less than 10,000 miles per year. Savings may be less if the vehicle owner is currently enrolled in a low mileage program and this mileage total is exceeded in any one calendar month.
Increased Savings With Other Incentives
State Farm offers a number of incentives for good drivers. The Drive Safe and Save Program will reduce monthly insurance premiums for most vehicle operators, but those who insure more than one car, combine their auto and homeowner’s insurance, or are accident-free will save even more.
The low mileage discount offered by State Farm is possible because statistics gathered over the years indicate the probability of an accident is directly related to the number of miles driven. Many families own several cars, but one of the vehicles may accumulate mileage much more slowly than the others. One car might be used only for shopping, taking kids to school, and running errands.
This particular vehicle is far less likely to become involved in an accident. It therefore makes sense to enroll in a low mileage program that rewards the policyholder with substantial savings on insurance premiums.
The State Farm Drive Safe and Save Program is ideal for those who do not exceed 10,000 per year on their vehicle. Enrollment in the program can be completed online through the insurance company or licensed agent.
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