State Farm’s Drive Safe and Save: 30% Lower Rates

Clearsurance.com recently released a report on State Farm’s usage-based insurance program, Drive Safe & Save. They discovered that policyholders who opt into this program could save as much as 30% on their monthly premiums. 

Usage-Based Insurance Programs

Usage-based or telematics car insurance options have proliferated in popularity. Consumers looking for ways to save on car insurance premiums may find the discount they’re looking for by joining their insurer’s program.

Usage-based programs monitor driving habits like braking, acceleration, miles driven, and time of day driving occurs. Those who demonstrate low-risk driving habits experience the most savings.

State Farm is one of the highest-ranked companies, so it’s not surprising they created a usage-based program. It is called Drive Safe and Save. They also have a program for young drivers under 25 called Steer Clear. It’s designed specifically to help new drivers identify safe driving habits and practice them. 

State Farm’s Drive Safe and Save Savings

According to Clearsurance.com, State Farm’s Drive Safe and Save program offers the following benefits:

• A 10% discount for opting into the program
• Up to a 30% discount based on driving habits
• No penalty for risky driving habits

Many car insurance companies offer a monitoring program similar to State Farm’s, but some will raise premiums for drivers whose risk levels exceed the standard. So, if a policyholder opts into the program and drives aggressively and over the speed limit, they may experience a premium increase. That won’t happen with State Farm.

How Drive Safe and Save Works

Most policyholders who opt into the program use the mobile app and bluetooth beacon that tracks their driving. But owners of 2020 or newer Fords and Lincolns can have data pulled directly from the vehicle thanks to the FordPass and Lincoln Way features built into these vehicles.

The behaviors that the program monitors are as follows:

• Acceleration
• Braking
• Cornering
• Distraction
• Speed

Rapid acceleration can lead to loss of control, so it’s considered a risky habit. Drivers who practice controlled acceleration are more likely to get a discount.

While hard braking is necessary sometimes, and the Drive Safe and Save program understands that, frequent hard braking indicates bad habits like following other vehicles too closely or not paying attention to what’s ahead on the road. 

Cornering is considered because fast cornering may indicate trying to beat a traffic light or oncoming traffic, both of which increase a driver’s risk.

Distracted driving activities, such as using a phone while driving, keep a driver’s attention off the road and greatly increase the chance of being involved in an accident. Drivers who use their phones to text or make calls can expect a lesser discount.

Exceeding the speed limit gives drivers less time to react to traffic hazards, increasing the chance of being involved in a car crash.

Realistic Expectations of Savings

Only drivers with optimal driving habits can expect a 30% discount. Many drivers will see a 10% to 20% discount on their premiums.

State Farm is ranked as the cheapest insurer overall, but drivers should also review other available discounts and make sure the ones they’re eligible for are applied to their policy so they can maximize savings.

Bundling home and auto insurance is a great way to save money on both policies. Some of State Farm’s other most popular discounts include the following:

• Anti-theft
• Good driver
• Good student
• Vehicle safety

Drivers can stack as many discounts as they’re eligible for.

Check out Clearsurance.com’s entire report here: State Farm Drive Safe and Save Review: Are drivers saving money?