State Farm Drive Safe & Save Program

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BigFoot48
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State Farm Drive Safe & Save Program

Post by BigFoot48 » Sun Aug 25, 2013 9:22 am

Has anyone signed up for this car usage monitoring program? I just received a letter (2nd one) from my agent promoting use of this program to possibly reduce our car insurance premiums. http://www.statefarm.com/insurance/auto ... e-save.asp My new Ford has SNYC which SF would be given access to for getting car usage information, primarily miles driven. This is then used to set a premium based on actual usage rather than the broad categories we are currently in ("over 7,500 miles"). I estimate we are actually driving 5,000-8,000 miles per year now that we don't drag a trailer around anymore so this would probably benefit us. Our premium is currently $565./yr

SF says this will not be used to raise rates except if it determines you are driving more miles than the category you are in (say, "under 7,500"), but there are concerns that the data it can gather from the car may be used some day in an unfavorable way, such as monitoring speeds vs. speed limits, etc.. Apparently these "usage-based" programs are the future of car insurance. One random article: http://news.onlineautoinsurance.com/con ... sion-98564 and one with more details on how it works: http://gigaom.com/2012/05/31/how-your-s ... nce-rates/ A WSJ article on it: http://online.wsj.com/article/SB1000142 ... 35766.html

So, has anyone ignored the possible privacy negatives and signed up for this? Anyone gotten a sizable discount? Are privacy concerns more important than a 1%-50% discount?
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 12-time loser

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Meaty
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Re: State Farm Drive Safe & Save Program

Post by Meaty » Sun Aug 25, 2013 9:39 am

I have not personally tried it, however, what's the fine print say? Can they use that data for rate increases in the future? Knowing that company EXTREMELY well, I can tell you they are very data driven and pride themselves (rightly so) on deriving better rates than other companies given the massive amounts of auto data they have.
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Rob5TCP
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Re: State Farm Drive Safe & Save Program

Post by Rob5TCP » Sun Aug 25, 2013 9:40 am

The NY Times also had an article about it.

http://www.nytimes.com/2012/11/25/busin ... vices.html

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BigFoot48
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Re: State Farm Drive Safe & Save Program

Post by BigFoot48 » Sun Aug 25, 2013 9:43 am

I don't know about the fine print, but in the FAQ under "Can my premiums increase with Drive Safe" they claim "Drive Safe & Save only uses your driving information to calculate your discount."

My 87-YO mother-in-law is only driving about 1,500 miles a year so I could see her benefiting from this program. (A 50% discount is possible if it finds one is driving less that 500 miles a year, apparently.)
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 12-time loser

Harold
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Re: State Farm Drive Safe & Save Program

Post by Harold » Sun Aug 25, 2013 12:05 pm

I participate in this. They show a discount of like 44% because of this program. (That information isn't entirely useful since there other safe driving discounts that total to like a 66% discount -- but I wouldn't have paid full price anyway so I don't measure against that.)

Though I didn't even try to format this, here is data on my car. Interestingly, they get mileage from other sources (guess when I get oil changed or whatever). Though I hadn't expected that, at least it corroborates my reporting.

Enrollment date: 03/08/2012 Option: Self-Report
Calculated annual mileage: 500 Option effective date: 03/08/2012
2003 HONDA CIVIC - VIN
Odometer Reading Date
Odometer Reading (Miles)
Date Received By State Farm
Source
08/11/2013
49,023
08/11/2013
Self-Reported
02/04/2013
48,882
02/05/2013
Self-Reported
12/26/2012
48,879
01/28/2013
Carfax
10/29/2012
48,865
01/28/2013
Carfax
08/05/2012
48,748
08/05/2012
Self-Reported
03/08/2012
48,410
03/19/2012
Self-Reported

kaneohe
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Re: State Farm Drive Safe & Save Program

Post by kaneohe » Sun Aug 25, 2013 12:09 pm

BigFoot48 wrote:
SF says this will not be used to raise rates except if it determines you are driving more miles than the category you are in (say, "under 7,500"), but there are concerns that the data it can gather from the car may be used some day in an unfavorable way, such as monitoring speeds vs. speed limits, etc..


Are you mixing 2 ideas together here? I can understand that a black box in the car can monitor speeds but what's the connection with semiannual reporting of mileage unless you are driving 24hrs every single day?

We have low mileage so are in the program. Seems to me that you would do it if you had lower than avg mileage and not do it if you had higher than average mileage.

gkaplan
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Re: State Farm Drive Safe & Save Program

Post by gkaplan » Sun Aug 25, 2013 12:14 pm

I wonder why other automobile insurers haven't instituted this.
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fsrph
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Re: State Farm Drive Safe & Save Program

Post by fsrph » Sun Aug 25, 2013 2:54 pm

BigFoot48 wrote:I don't know about the fine print, but in the FAQ under "Can my premiums increase with Drive Safe" they claim "Drive Safe & Save only uses your driving information to calculate your discount."


I am a SF customer and was not offered this program. I would not have accepted it unless I knew a whole lot more about it. For example, does the monitoring device keep track of your speed? If it does and you have an accident and you were going 58 mph in a 55 zone can they deny your claim?

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BigFoot48
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Re: State Farm Drive Safe & Save Program

Post by BigFoot48 » Sun Aug 25, 2013 3:33 pm

I am a SF customer and was not offered this program. I would not have accepted it unless I knew a whole lot more about it. For example, does the monitoring device keep track of your speed? If it does and you have an accident and you were going 58 mph in a 55 zone can they deny your claim?

There's no monitoring device. SF accesses vehicle information using the On-Star, SYNC or In-Drive data link and that provides miles driven data but not, to the best of my knowledge, extensive vehicle black box data. For my Ford it would pull the Vehicle Health Report which provides odometer readings, etc. (although not in the report I get!).

Whether insurance or police are going to be accessing the car computer for crash data, or already are, is another issue.
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 12-time loser

czr
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Re: State Farm Drive Safe & Save Program

Post by czr » Wed May 17, 2017 5:52 pm

Does anyone have any recent experience or have any updates on this State Farm Drive Safe & Save Program with people who have been on this with the new smartphones and Bluetooth technology? I asked my agent about it and they said I could save 5% annually on our cars policies. I wanted to get bogleheads' recent observations.

meebers
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Re: State Farm Drive Safe & Save Program

Post by meebers » Wed May 17, 2017 7:20 pm

My son got a call from his SF agent about 6 months after he bought a new truck. They said the "prediction" was that he would exceed the total mileage he had stated on the policy. He got a rate increase. How they got the info remains a mystery.

Bonanza77
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Re: State Farm Drive Safe & Save Program

Post by Bonanza77 » Wed May 17, 2017 9:41 pm

Liberty Mutual has a similar program, and I signed up for it about a year ago.

The device they sent me (supposedly) only measured four things: (1) rapid acceleration; (2) rapid deceleration (hard braking); (3) time of day/night; and (4) total miles driven. According to Liberty Mutual, those are the best predictors of claims. I don't remember the exact criteria for categories (1) and (2)--although they did disclose them--but for the third category you got dinged for driving between Midnight and 4:00 a.m. You could track your results and your estimated discount on a daily basis on their website (it was a 90-day program). I got demerits three times for hard braking, and every one was justified (all were because someone cut me off in rush hour traffic...which, regardless of fault, is probably predictive of more claims).

Total miles driven had the most potential impact on the discount. I ended up getting 17% off my premium. Based on the amount I drove, 20% was the maximum for which I would have been eligible.

I read the fine print, and there was nothing in it that bothered me. The insurance companies really want that data, they are cognizant of the privacy concerns, and they are willing to at least pretend that the data won't be used to increase your rates or deny a claim they otherwise would have paid, or for anything other than the purposes stated in the disclosures.

KT785
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Re: State Farm Drive Safe & Save Program

Post by KT785 » Wed May 17, 2017 10:17 pm

My wife and I have had Drive Safe & Save for several years and get a pretty nice discount as a result. I'd previously used an active OnStar subscription for the program, but when I bought my Subaru in December (thus not having an OnStar equipped vehicle anymore), I received the new Bluetooth device after getting one for my wife's Nissan a few months prior.

Prior to Drive Safe and Save, I believe we both received low mileage discounts from State Farm but the discount with Drive Safe and Save has been larger . . . and it's fun to compare are "grades" when we discuss which of us is the better driver.

Per the app, the discount on my Subaru Outback is currently $63.91 per six months and the "trending" discount (projected after 12 months of data is collected) is $87.21; my annual mileage is estimated by the app at 4,300. The discount on my wife's Nissan Rogue is currently $48.02 per six months and the "trending" discount is $47.85; her annual mileage is estimated by the app at 6,200.

I'm pretty comfortable with the limited information that the device captures and reports to State Farm--and I feel as though I'm more cautious with how I drive knowing that the device detects trends in certain behaviors (hard breaking, taking turns too fast, etc.).

Swansea
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Re: State Farm Drive Safe & Save Program

Post by Swansea » Thu May 18, 2017 5:50 am

I think insurance companies could get mileage data from State Agencies who do emissions testing.

Daryl
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Re: State Farm Drive Safe & Save Program

Post by Daryl » Thu May 18, 2017 6:21 am

KT785 wrote:. . . and it's fun to compare are "grades" when we discuss which of us is the better driver.
Are the "grades" tied to the car, or the phone? If you want a better "grade" than your wife, do you need to "borrow" her car and do doughnuts in the local school parking lot @ 2 AM with your phone in your pocket, or with her phone?

My current six month discount is $172.88 and my trending discount is $174.43. I'm comfortable with the discount and program in general.

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