Real-Time Insurance Premium
Ford has partnered with local American insurer State Farm to implement a system where the driver’s behavior can be directly sent to the insurance company via a 3G or 4G smartphone. The information collected can help determine the driver’s insurance premiums. Instead of calculating insurance costs based on statistical analysis, State Farm wants to know the customer’s actual driving behavior, such as how often they drive, how fast they go, and how far they drive each time. The collaboration would be implemented on Ford’s current dashboard platform, SYNC. Unlike similar programs offered by other car insurance companies, Ford drivers can instantly track their behavior using a SYNC app and transfer the data to State Farm with a smartphone. Spokesperson at Ford commented that people who drive the national average of 1,000 miles per month can look to save 10 percent on insurance premiums, and low-mileage driver could save up to 40 percent.