State Farm started offering its “Drive Safe & Save” program this summer around country. Florida, Pennsylvania and Michigan, Georgia, Alabama, Indiana, Minnesota, Utah and Washington were the first states to get the new program, with Florida drivers getting the offer on June 25. The program was previously offered in only five states: California, Illinois, Colorado, Ohio and Texas.
Progressive insurance is so far the only other company which offers discounts to drivers who drive less.
The idea is simple enough and seems very fair. If you drive less, they reason, you are a lower risk than someone who drives more often or for longer durations. That makes you a much lower risk.
State Farm’s program provides discounts to all eligible customers who allow the insurer to track how much they drive. The discount, initially 5 percent, could increase after six months to 10 percent for those who drive 1,000 miles a month, the national average, or as high as about 40 percent for those who drive the least, said State Farm spokeswoman Michal Connolly.
Progressive uses a variety of information that is tracked, such as how often someone hits the brakes, while State Farm uses only mileage, according to Office of Insurance Regulation spokeswoman Amy Bogner.
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