New Lincoln and Ford cars now offer a usage-based insurance discount

Posted: 25 February 2020 3:36 pm

By sharing their driving data, safe drivers can cut their premiums by up to 40%.

Ford and Lincoln have paired up with Nationwide to offer cheaper auto insurance for safe drivers and those who don’t drive as often.

Issued by Ford Insure and Lincoln Motor Company Insure, the pay-as-you-go policy is available to people who purchase a 2020 model from either brand. The new cars have an embedded modem for easy data collection — older models required drivers to install a plug-in device.

The six-month policy is currently open to drivers in 39 states:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Delaware
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Maine
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • North Carolina
  • Ohio
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin
  • Washington DC

When drivers opt in, they’re enrolled in Nationwide’s SmartRide, a usage-based program that shares information with the insurer — including the distance driven, hard braking and accelerating, idle time and night driving. The insurer then uses this data to set a policy rate at renewal, and drivers can earn a discount of up to 40 percent depending on their driving habits.

How to sign up for the insurance policy

To get coverage, qualifying drivers can log into the FordPass or Lincoln Way app and navigate to the insurance tile.

The form is prepopulated with vehicle information for a faster checkout.

“This is the latest way we’re improving the customer experience,” said Elena Ford, chief customer experience officer at Ford Motor Company, when announcing the product.

“Insure makes getting insurance easier for connected-vehicle customers to cover one of their biggest investments — their vehicle — while saving money,” Ford said.

Nationwide begins collecting driver data as soon as coverage goes into effect.

As part of the SafeRide program, policyholders also have access to Nationwide’s Accident Forgiveness option and repairs using authentic Ford parts.

How Insure compares to other pay-as-you-go policies

Mileage-based car insurance isn’t new, and most major carriers across the U.S. offer telematics discounts, like GEICO and State Farm. There are also insurers that specialize in pay-as-you-go insurance, such as Metromile.

While Insure’s product offers a discount of up to 40 percent, it’s only assessed at the policy renewal. If you choose another provider, you might be able to start saving as soon as your policy is active.

Depending on your carrier and car, you might need to download an app, activate a built-in device (like OnStar or SYNC), or install a telematics device — which is sometimes called a “black box.”

Insure aims to make usage-based insurance more appealing by offering it on 2020 models with an embedded modem, like the Ford Fusion, Ford Mustang, Lincoln Aviator and Lincoln Navigator.

Picture: Getty Images

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