State Farm in Texas will soon be implementing mileage based insurance premiums. Tagged as the Drive Safe and Save program, it is an opportunity for drivers to lower their premiums. Of course, there are some limitations at this time.
The main limitation is that you must have an active OnStar account. State Farm is basing its entire program on diagnostics provided by OnStar. No account, no discount. That eliminates thousands of drivers whose vehicles do not have OnStar.
Any discounts will be based on a 100 day evaluation period. The average mileage driven during that period will determine the discount offered. Your Texas car insurance rates could drop anywhere from 1% to 30%. The discount will be reevaluated each time your policy is renewed.
State Farm is onboard and Progressive is offering a similar program in several states. It seems that pay-as-you-drive discounts are the wave of the future.