State Farm plans mileage-based premiums

By Associated Press
Posted April 12 at 1:45 p.m.

State Farm plans to begin increasing or lowering some of its Illinois policy holders’ rates next year based on how far they drive.

The Bloomington-based company says its new Drive Safe and Save program will only be available to its customers who have OnStar devices on their vehicles and use its vehicle diagnostics tracking tool.

Company spokeswoman Angie Rinock told The Pantagraph newspaper in Bloomington that people who drive about 12,000 miles a year or less could save 10 percent or more on their premiums.

Rinock said State Farm will only gather mileage information and will not track other data such as driver speeds.

State Farm has about 250,000 customers in Illinois who drive vehicles with OnStar.

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  1. Bob in Chicago April 12 at 2:56 pm

    So my car has OnStar but I don’t subscribe anymore BUT if I wanted this reduction I could spend $179.40 per year(12mos X 14.95)to save 10% per year on my $600 premium ($60)…Ahhh Nope.

  2. Steve April 12 at 3:24 pm

    You don’t get it Bob. It’s available for people who already subscribe, not for people like you who dropped the subscription. I’m going to save the $60.

  3. prook April 12 at 4:07 pm

    Bob gets it, you have to pay to save… And, I have 3 vehicles without OnStar, so I’m outta luck..

  4. Darren April 12 at 4:08 pm

    Don’t do it. You will be sorry. I am an insurance agent and nothing good for the consumer will ever come of this. Insurance companies are really good at 1 thing..making lots of $$$.

  5. ITguy April 12 at 6:18 pm

    I signed up for Allstate’s Drive Wise program (a device installed on your computer port under the dash). I got an immediate 10% discount for signing up with possible discounts on future renewals based on my driving habits. According to the statistics, I don’t qualify for ANY discount in the future. I am a safe driver — I don’t speed, tailgate, or drive between the hours of 12AM-6AM. Yet, NO DISCOUNT FOR YOU! This program blows.

  6. Bob April 12 at 7:12 pm

    I think they’ll be opening up a lawsuit because I would say this would be descrimnating against someone without an Onstar vehicle, regardless of miles driven.

  7. Mr Magoo April 12 at 8:25 pm

    A lawsuit? So now cars are protected from discrimination based on make, model and equipment? Lexus repair shops can’t discriminate against the lowly Kia? Ugly orange cars have equal rights on the used car lot versus beautiful metallic blue cars when you go shopping? I don’t think so.

  8. Tim April 13 at 9:08 a.m.

    I’m calling my agent in a few minutes to dispute this. I don’t have OnStar, I have no plans to subscribe to the service. I have complete and comprehensive roadside assitance from my manufacturer. I have onboard phone software that automatically recognizes our cell phones. I have five various policies with State Farm. I’ve been with this agent over 20 years. I can drive to their office for validation of mileage any time they want. I put approximately 500 miles a month on my cars if that much. I live close to the El, Jewel, CVS, etc. etc. This could easily become a class action law suit. I for one am going to make that clear to them.

  9. Tim April 13 at 9:16 a.m.

    “Like a bad neighbor,State Farms a joke”..lalala.

  10. Umm April 13 at 9:47 a.m.

    I wonder how much OnStar has invested privately with State Farm…

  11. Joe S April 13 at 10:10 a.m.

    I’ve been with State Farm for years and we’ve always gotten a very steep discount on one of our cars for driving under 8K miles per year. They do send us a request every year or so to verify the miles but that’s about it.

  12. Vince April 13 at 10:15 a.m.

    Dear State Farm slogan mill, it should be “Drive Safely and Save.”

  13. Kris April 13 at 1:27 pm

    I remember reading an article a few months ago that OnStar will be available for everyone through Best Buy. You buy it at Best Buy & then pay to have it installled. So even if you don’t have a GM vehicle, you can still get OnStar. Some people were complaining that the only reason they bought GM was because of the OnStar. Can’t please everyone, but my point is that you don’t have to own/buy a GM vehicle to get OnStar.

  14. 007 Thursday at 11:40 a.m.

    @Tim….waah-waah. I want to play “Angry Birds” but it’s not an app on my phone. I should sue!

  15. Ted Friday at 12:46 a.m.

    This is about squeezing out the bad drivers. Good drivers will ultimately get no discount but bad drivers will get nailed. And in the end if you don’t have a device that tracks your driving you will be rated like a bad driver. It’s coming.

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