If you’re the owner of a 2020 Ford connected vehicle, you could be eligible for lower auto insurance thanks to a new partnership with Liberty Mutual Insurance. How? Drivers must be willing to participate in the insurance company’s telematics program. Liberty Mutual has made similar partnerships with other automakers, including Subaru.
Ford also recently teamed up with auto insurer Allstate to offer insurance solutions. All 2020 model year vehicles from Ford and Lincoln’s lineup that come with embedded modems will be able to connect with Allstate’s Milewise program.
What is car insurance with telematics?
You’ve probably heard the terms ‘pay-as-you-go’ or ‘usage-based’ when it comes to auto insurance. These are programs designed to offer insurance based on driving behaviors, and the idea is that better drivers will be rewarded with lower rates.
The benefit to the insurer is gaining all this driver behavior. Once a customer gives consent, the telematics technology allows insurers to track driver distance, braking, idle time and night driving. That means, this type of auto insurance will be more attractive to very careful drivers and those who don’t drive often.
Typically, the insurer will offer the policyholder a specific rate after collecting 30-60 days of driving data.
Telematics aren’t new or unique to the auto insurance industry. The programs are being used by almost all major auto insurance companies. Toyota also recently announced a partnership with Nationwide to offer a telematics-based insurance solution.
RightTrack from Liberty Mutual
Liberty Mutual wants to reward safe drivers via its RightTrack insurance program. The company claims customers savings between 5% and 30%. Participating in the RightTrack program means your driving habits - braking, day vs night driving times, miles driven, etc - are monitored to then determine what rates you pay.
Unlike some other telematics tracking devices, Liberty Mutual provides a tag that gets placed on your windshield, ideally behind the rearview mirror. Once the tag is applied to your vehicle, you can use the Liberty Mutual app to track your data.
After 90 days of driving, you’ll be notified of the discount being applied to your policy based on your driving behavior.
Milewise from Allstate
Allstate’s usage-based auto insurance program is called Milewise. Policyholders pay a daily base rate, plus a per-mile rate when you drive. If you opt-in to the Milewise program, you’ll receive a device to plug into your car under the dash and steering column, and that will capture the miles you drive. The device also tracks your speed, time of day, specific driving events (like sudden braking) and location.
Then, drivers can use the Allstate app to track their miles. Currently, Milewise is only available in these locations: Arizona, Delaware, Idaho, Illinois, Indiana, Maryland, New Jersey, Ohio, Oregon, Texas, Virginia, Washington, West Virginia and Washington D.C.
Telematics can save commuters
Usage-based auto insurance is ideal for those who don’t drive often or have very short commutes. For instance, seniors or professionals who work from home may score a lower premium.
If you aren’t comfortable with data collection, a usage-based program may not be worth it for you. Before you sign up for one of these programs, be sure you know exactly what data the insurance company is collecting and who - if anyone - they share it with.