Even consumers with poor credit can save on State Farm auto insurance if they drive certain General Motors and Ford vehicles

Car insurance costs

Car owners with poor credit on tight budgets who finance their vehicles with higher-risk car loans are often especially sensitive to the costs of car insurance.

At Auto Credit Express we're familiar with this situation because for over twenty years we've been helping consumers with questionable credit applying for online car loans find those dealers that can give them their best opportunities for car loan approvals.

These buyers aren't helped by the fact that in some states drivers can, in part, be rated on their credit scores. But there is a form of car insurance that, even under these circumstances, can make those auto insurance premiums more affordable.


Called pay as you drive (PAYD), its auto insurance that, in addition to the other factors, calculates a portion of your premium based on how far you drive. By considering the reduced risks that lower mileage poses, it gives these drivers a discount over what they would normally pay.

State Farm and SYNC

Last year State Farm Insurance and Ford announced a partnership that included an expansion of State Farm's Drive Safe & Save program to include select SYNC-equipped Ford vehicles.

State Farm customers who drive these vehicles can reduce their auto insurance premiums by using the Vehicle Health Report feature of SYNC to report their mileage.

State Farm stated that initial savings will be about 5 percent, with the actual premium savings determined at each six month renewal date interval based on the miles driven during the previous six-month period.

The auto insurance company also estimates that drivers who average 1,000 miles per month will save about 10 percent, while even lower-mileage drivers could save up to 40 percent.

State Farm and OnStar

Drivers of General Motors vehicles equipped with OnStar that have an active subscription that includes OnStar Vehicle Diagnostics can also take part in State Farm's Drive Safe & Save program.

At the time OnStar owners sign up, State Farm will request up to the six most recent historical odometer readings to compute the discount. As with the SYNC program the premium is recalculated with each six month policy renewal.

Unlike the Ford system, however, there is a charge for the OnStar subscription service required to do this and customers may not always save enough to recover the cost of the OnStar subscription.

One other point that should be made is that currently the Drive Safe & Save program is available all 50 states and according to the State Farm web site, while OnStar participates in all of those states, Ford drivers with the SYNC system cannot yet sign up in the states of Georgia and Washington.

The Bottom Line

PAYD auto insurance, such as the State Farm Drive Safe & Save program, could certainly help low-mileage drivers that have experienced auto credit problems – especially in those states where auto insurance rates are partially based on FICO scores.

So if you have bad credit, a vehicle equipped with OnStar or SYNC and you're shopping around for car insurance, be sure to check out all your options including State Farm's PAYD car insurance program to see what your savings might be.

One more thing it's always a good idea to check out: at Auto Credit Express we match applicants that have experienced car credit problems with dealers that can give them their best chances at approved car loans.

So if you're ready to reestablish this type of credit, you can begin now by filling out our online  loan application.