State Farm Offers Mileage-Based Auto Insurance Discounts

Auto insurance discounts are on the way for California residents who are also customers of State Farm Insurance. The company recently announced that it will be offering discounts to customers in the state who drive less and are willing to submit their odometer readings to the company.

Drive Safe and Save (DSS)

State Farm has announced its Drive Safe & Save (DSS) voluntary auto insurance program for California customers that will offer them the opportunity to adjust future policy rates based on the previous six months of driving. Here are some basics of the program:

  • Drivers will fall into one of 39 mileage segments with discounts starting at 19,000 miles.
  • Discounts of 1 to 2 percent will be granted for every 500 miles less the customers drive.
  • Ultralow-mileage drives (around 2,000 miles annually) will be offered the biggest discount of 45 percent.

State Farm said with the average California driver paying $750 annually for an auto insurance policy, it predicts that the typical policyholder will save 6 percent on their coverage.

To jump start the program, State Farm plans to offer its customers an automatic 5 percent discount just for enrolling. It plans to begin on February 28, 2011.

What If I Don’t Live in California?

If you’re reading this only to realize that you don’t live in California and can’t benefit from State Farm’s DSS program, it’s good to know that the program is also offered in Ohio and it’s not the only Pay as You Drive program out there. Progressive also offers a Pay as You Drive (PAYD) program known as MyRate.

Overall, the mileage-based program is still very new and does not appeal to everyone, so if you want to save money on auto insurance without taking this route, there are other great auto insurance discounts out there.

The best way to find out what offers appeal to you is to shop around for coverage with multiple companies. This way, you get a well-rounded perspective of what companies will not only offer the best rates, but the best services as well.