In the ever-competitive property and casualty market, personal lines insurers are scrambling to provide their customers with the “next big thing” in safe driving services. For State Farm and Hughes Telematics Inc., giving the option of connecting vehicle services with telematics savings programs to drivers across North America is just that. The new effort is called “
In-Drive provides a device that works in most vehicles made after 1995. It broadens access to new connected vehicle services without requiring drivers to purchase a new vehicle.
The service includes a special website and smartphone app for remote and mobile access, as well as other features: one-touch emergency response, roadside assistance, stolen vehicle location assistance, vehicle diagnostic alerts, maintenance reminders and family-friendly features, such as location services and speed alerts.
"This combined offering represents a first in our industry," said Mike Wey, SVP of State Farm. "It will provide drivers with a wide range of new options that will make for a smarter vehicle and even smarter driver."
The service debuts in Illinois in September with more states to be added in 2012. Services will be available in three different packages. For the first six months, the basic package will be free after a $10 activation fee. Other packages will range in cost from $5/month to $14.99/month plus applicable taxes, according to the insurer.
In addition to offering the new connected services, State Farm policyholders using In-Drive will be invited to take part in the Drive Safe & Save program. In-Drive will provide driving performance data and the customer's savings will be based on mileage, turns, acceleration, braking, speed and the time of day that the vehicle is operated.
State Farm is making this new program worth its policyholders’ consideration. Initially, those opting to participate in this voluntary program will save approximately 10 percent on liability, medical payments, collision and comprehensive coverages, promises the insurer. The amount of premium savings can change at each renewal date (every six months), as odometer readings and other driving information become available. The discount may increase up to 50 percent, based on how safely a person drives, when they drive, and how much they drive. The website will showcase where a customer's discount stands and what factors have contributed to the discount. Drivers also can receive personalized tips on what they can do to maximize their savings.
Those who drive the national average of 12,000 miles per year can typically save from about three to 20 percent depending on the way they drive. These discounts are on top of other discounts State Farm provides, says the insurer.
To find out more specific information about In-Drive and Drive Safe & Save and eligibility, contact a State Farm agent or go to www.statefarm.com/drivesafeandsave.
