INSURANCE INDUSTRY TRENDS: Insurer adds telematics policy

by | Aug 8, 2011 | Claims Department News

State Farm last month announced it is expanding its “pay-as-you-drive” insurance policies to Illinois with the introduction of “In-Drive,” a telematics system that, similar to one offered by Progressive, tracks when and how a how is driven.
The system allows State Farm to offer free or monthly-fee services such as one-touch emergency response, stolen vehicle location assistance and vehicle maintenance alerts. But the company will also offer policy discounts of 10 to 50 percent based on vehicle driving data such as mileage, turns, acceleration, braking, speed and time of day.
State Farm says In-Drive will be offered in more states in 2012.
A study that earlier this year found that pay-as-you-drive insurance could reduce mileage, accident costs and fuel consumption by 5 percent to 9.5 percent.