State Farm Launches In-Drive Auto Insurance Discount Program

Auto insurer State Farm is the next in line to offer its version of usage-based driving discounts. The company recently announced it has unveiled a new device that will provide policyholders with a number of safety features while offering savings options through their discount auto insurance program.

State Farm Announces In-Drive Program

State Farm set to offer In-Drive, a system developed by Atlanta-based Hughes Telematics, which gives users the ability to take advantage of State Farm’s Drive Safe & Save program. The program rewards policyholders for low mileage and safe driving habits.

To take advantage of the program’s savings with the system, the In-Drive device will be installed in the driver’s car and collect data on driving habits, including mileage, turns, acceleration, braking, speed and time of day in which the car is driven since these variables play a major role in accident risk.

Based on the information collected, drivers could see discounts on their coverage of up to 50 percent. However, the company expects most drivers with an average of 12,000 miles a year will save approximately 20 percent.

The Drive Safe and Save program is one of the latest usage-based programs to be launched. Progressive launched its pay-as-you-drive program years ago, and recently, Allstate launched its Drive Wise program in Illinois.

Safety Features of In-Drive Service

In addition to taking advantage of savings through the Drive Safe and Save program, drivers with State Farm’s In-Drive service will have access to a number of features similar to those available through General Motor’s OnStar system.

Features include:

  • One-touch emergency response
  • Roadside and stolen-vehicle location assistance
  • Vehicle diagnostic alerts
  • Maintenance reminders

According to the company, the In-Drive service works via “an easy-to-install device that works in most vehicles made after 1995.”

Currently, the State Farm’s Drive Safe and Save program is available to customers in California, Colorado, Illinois, Ohio and Texas. The Drive Safe & Save program that utilizes the In-Drive technology will be offered to consumers in Illinois in September then expand to other states in 2012.