Ford Is Teaming Up With a Unique New Insurance Company
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Ford has joined forces with Mile Auto, a new, usage-based insurance provider, to offer cheap car insurance for low-mileage drivers.
PR Newswire reports that under the new policy, Ford drivers who use under 10,000 miles every year could save up to 40% off their current policies.
The collaboration comes as the pay-per-mile approach grows in popularity amongst automakers and insurers.
Ford and Mile Auto are teaming up to save people money | Twenty20
Pay-per-mile insurance, explained
Pay-per-mile insurance is a usage-based model that determines your insurance costs based on how much you drive. Many insurance providers have usage-based policies, from USAA’s SafePilot program to Progressive’s Snapshot app.
While insurance companies use a number of methods for tracking your mileage, the most popular tool today is telematics.
Telematics is a broad term for the transmission of data over long distances, but in regards to car insurance, it refers to the collection of information through phone apps or vehicle computers so that insurers can decide the price of your premiums based on how you use your car.
How is Mile Auto’s insurance different from its competitors?
At first glance, the program Mile Auto and Ford are offering looks very similar to the usage-based programs of other insurers. It uses similar technology and offers similar discounts.
But Mile Auto differs from its competitors in how it collects your driving data. While most other usage-based programs rely on phone apps or external hardware, Mile Auto’s collaboration with Ford allows them to access the information already being downloaded onto your vehicle’s computer.
While Mile Auto’s approach limits them to only insuring vehicles from the brands they’ve partnered with (Ford and Porshe), it also allows them to base their rates on more accurate info than many of their competitors.
Where can I access Mile Auto insurance for my Ford?
Not all Ford owners can buy Mile Auto insurance. If you own a current Ford model and you live in Arizona, Georgia, Illinois, or Oregon, you can sign up for Mile Auto insurance right now.
If you are not located in these four states, don’t worry. Mile Auto plans to expand the program to 50% of the car insurance market by the end of this year.
Is Mile Auto insurance right for me?
Pay-per-mile insurance policies like Mile Auto can save drivers a lot of money, but it’s not for everyone. Drivers who use their vehicles for less than 13,000 miles a year are the most likely group to save using Mile Auto.
If you don’t check your odometer on a regular basis, ask yourself the following questions:
- Are you a student?
- Do you work from home?
- Do you regularly take transit, bike, or use other ways to get around besides your car?
- Do you have a secondary vehicle you use infrequently?
If you answered “yes” to any of these questions, you might benefit from pay-per-mile insurance.
Other ways to save on car insurance
Pay-per-mile programs like Mile Auto are not the only way to save on car insurance. By comparing prices from up to 45 different providers, Jerry can help you find the best deal and bring your premiums down.
No matter what type of driver you are, signing up for Jerry is a no-brainer. The average Jerry user saves $879 per year. And the best part? It’s 100% free!