DETROIT — Captive finance companies are joining the search for tools that leverage information about consumers' driving habits into discounts on auto insurance.
Ford Insure, a product created by Ford Motor Credit Co., is being rolled out state by state, said CEO David McClelland. The product is underwritten by Nationwide Mutual Insurance and its affiliates.
With the move, Ford Credit joins auto insurance firms and providers of F&I products in developing tools that aim to deliver a financial benefit to the car owner by capturing data that historically hasn't been harnessed.
Set up with a customer's permission and depending on driving behaviors, a typical premium can be reduced on average by about 20 percent, McClelland told Automotive News.
Owners of Ford vehicles from the 2020 model year can get an auto insurance quote and obtain a policy from Ford Insure on the FordPass application, the company said.
Metrics used to determine the discounts include miles driven, braking styles, the amount of nighttime driving and the pace of acceleration.
Customers with connected Ford vehicles receive a 10 percent discount just for signing up, and can cut their insurance premiums by as much as 40 percent.
Currently, the product is available in 32 states and the District of Columbia. All 2020 Ford vehicles are compatible with Ford Insure except the F-150 pickup, the company said.