Kyle Johnson
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Ford, Lincoln Offer Usage-Based Insurance

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2020 Lincoln Aviator Signature | Ford, Lincoln offer usage-based insurance
Lincoln Aviator available with usage-based insurance
Photo: Lincoln

With so many folks driving less these days, usage-based insurance policies for drivers make more sense than ever. Ford Motor Company and Lincoln Motor Company are coming to the rescue by offering driver-friendly policies and leveraging connected vehicle technology.

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Ford announced in December that it’s partnering up with a handful of major insurance providers to offer usage-based insurance policies. So far, the automaker has agreements in place with Allstate, Liberty Mutual, Metromile, State Farm, and Verisk Data Exchange. Ford says that it has signed contracts with other providers and will announce those details later in 2021.

Ford Insure and Lincoln Motor Company Insure, both underwritten by Nationwide, are also offering user-based policies for drivers of eligible vehicles. Launched in 2019 by Ford Credit insurance subsidiary American Road Services Company, these insurance offerings were first offered on the Ford Explorer and Lincoln Aviator. According to Ford, discounts for drivers were as much as 40 percent based on behavior.

“Connected vehicles present new opportunities for us to help customers save money and improve their experience with Ford products,” said Alex Purdy, director of business operations, enterprise connectivity, Ford Motor Company. “Whether customers are purchasing through Ford Insure or working with another carrier, we are committed to giving them the ability to choose the right option for themselves — and to potentially earn big discounts based on how they drive.”

Usage-based insurance means providing telematics data

To secure a usage-based insurance policy, drivers must have an eligible Ford or Lincoln vehicle with telematics capabilities. The data pulled from these connected vehicles helps determine a driver’s habits and use, allowing insurance providers to set premium rates accordingly. If a driver is prone to speeding for example, that data would lead to a higher rate than that of a driver who stays within posted speed limits.

If you own a qualifying vehicle, you can switch to Ford Insure or Lincoln Motor Company Insure through the FordPass or Lincoln Way app.

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