Following the success of Progressive's "Snapshot" program, State Farm is keeping the usage-based auto insurance world competitive with the launch of In-Drive.

The In-Drive service offered through State Farm's existing Drive Safe & Save program provides discounts to consumers who have good driving habits. What makes In-Drive unique, however, is the technology being used to monitor vehicle usage.

Through a small on-board device developed by Hughes Telematics, consumers can report their mileage, speed, acceleration, braking and the time of day the vehicle is driven, along with other information to get substantial discounts on auto insurance rates.

"[In-Drive] could save policyholders up to 50 percent on policy rates, based on a range of factors including their safety as drivers and how many miles they log," State Farm said in a press release.

Also, not only does In-Drive provide an avenue to savings, but it includes roadside and stolen vehicle location assistance, vehicle maintenance alerts and diagnostic reminders.

Before In-Drive, State Farm customers could only receive usage based discounts by submitting their mileage before every six-month billing period, but with the integration of the latest technology, consumers can instantly submit their good driving habits via Wi-Fi, 3G and 4G networks.

However, not everyone will have access to the In-Drive service, which will only be available to motorists in Illinois when it hits the market in September and goes through a trial run there before State Farm plans to expand the service to California, Colorado, Illinois, Ohio and Texas in 2012.

—AJ Register