Our latest Future Of Retail Report looks at the trend of Service With An Opt-In. One manifestation of this theme is a recent partnership between Ford Motor Company and State Farm Insurance to implement a system where a driver’s behavior on the road determines the amount they pay for insurance. Instead of calculating insurance costs based on the predominate statistical analysis model, State Farm leverages a technology solution to collect data about how often an individual drives, how fast they go, and their average driving distance.
The collaboration is made possible through Ford’s current dashboard platform, the SYNC app, which records pertinent driving data and communicates it with the corresponding smartphone application. Ford estimates that people who drive the national average of 1,000 miles per month can look to save 10 percent on insurance premiums, and a low-mileage driver could save up to 40 percent.