Author Topic: State Farm increased my auto insurance by 50% for no good reason!  (Read 1040 times)

Tuskalusa

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State Farm increased my auto insurance by 50% for no good reason!
« on: September 02, 2017, 10:45:02 PM »
Ok. This is a rant with a question.

I got a letter from State Farm saying that are now using Consumer Reports data for their rate analyses, and my insurance has gone up as a result. It went up by 50%. This is a 10-year-old car and I have a clean driving record. What the heck is up with that?

Has anyone else seen this happen?

I will switch, cuz this is just robbery. But I don't really see the logic of the increase. Seems like they're gonna tick off a lot of customers. Any idea what's going on here?

EarthSurfer

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #1 on: September 03, 2017, 06:39:51 AM »
With a clean driving and claim record, you should be comparison shopping every two years. Consider this a nudge from State Farm to check your insurance pricing.

Scan the summary of coverage document, and contact a few independent agents who can make cost comparisons for you.  Include any homeowners, renters, or umbrella policies. 

I re-bid my entire insurance package 5 years ago when I purchased a new primary residence and converted another condo to a rental. I had a homeowners, 2 rental properties, auto with full coverage, some business insurance, and a $2,000,000 umbrella policies. At the time I was a decade long State Farm customer, but I couldn't ignore the 40% lower quote from both Nationwide and Travelers.

While I'm certain I won't have the high touch claims service of State Farm, I have the financial reserves and patience to wait, and the tenaciousness to fight for proper reimbursement for a loss.

I have never had a large personal claim, but I have managed a large claim dispute as treasurer for an HOA. I learned that even "high touch" insurers don't necessarily pay out the full claim without some negotiating.

Retired early, retired often since 1998...

YttriumNitrate

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #2 on: September 03, 2017, 07:38:27 AM »
I switched cars/home insurance from State Farm a few months ago. It seems like insurance companies have taken up the Cable Company business model where they offer good starting rates, but then jack up your rates until you switch...I've already set a June 2021 reminder in Outlook to switch again.

Tuskalusa

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #3 on: September 03, 2017, 09:06:27 AM »
Thanks for the advice. I've been hesitant to switch because of the high-touch customer service. But it's too hard to ignore the cost differences. Appreciate the advice.

moof

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #4 on: September 07, 2017, 03:12:06 PM »
Worth looking around now and then.  We switched to Ameriprise 3 years back, and it was a good 40% lower than the quote we got from Esurance for adding a used car to our stable.  We also switched home insurance, and that saved almost 50% a year.

ObviouslyNotAGolfer

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #5 on: September 08, 2017, 02:56:43 PM »
21st Century (owned by State Farm, I think?), who I have used for years, continued to jack up my rates for no reason whatsoever (no accidents, tickets, points or anything in 20+ years!). My July renewal was another 150$ or so higher than the previous six month period, so I just switched to Geico and saved about $180 over what I would have paid with 21st. Sucka brand loyalty keeps many people tied into bad companies, and bad deals.

alexstjo26

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #6 on: September 10, 2017, 02:31:19 PM »
If you live in CA or Oregon try wawanessa insurance.

ender

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #7 on: September 10, 2017, 05:49:24 PM »
I had similar issues with USAA and when I called them at length to talk through things, the rep I talked with indicated there were significant additional claims in my state over the past few years, resulting in insurance bumps.

It might be something similar. We just switched and saved a bunch though, since... I think it would have been $400/year more to have USAA for auto/homeowners (compared to Amica). I think Geico would be slightly cheaper than that, too?

JLE1990

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #8 on: September 20, 2017, 04:46:33 PM »
I might be able to provide a little insight into this. In 2015 state farm lost most of it's profit on the auto side(from 7billion to 400mil). When gas prices plummeted everyone and their mother decided to start driving, this of course caused more accidents. Newer vehicles are also much more expensive to fix. Of course neither of these are your fault but insurance is based on crowdsourcing so while you are a good driver and never hit anyone, there's lots of SF customers out there who are terrible and run into shit all the time. They have to pay out on those claims and that money has to come from premiums of good drivers.

I'm not sure why people seem to have such a "used car salesman" mentality towards insurance. It's highly regulated, any rate changes must be approved by your state's insurance dept. and the submission has to show a statistical reasoning behind the rate change. There's some shittiness, but not more than in any other industry.

SF, Farmers, Allstate have all significantly tightened their book of business and are actively trying to cast off bad risks etc. by raising rates on any vehicle models or profiles that have bad risk histories. It's very possible that you have a vehicle that younger drivers or careless drivers typically have, causing them to raise your rates based on that model.

One other note is that it's not just tickets and accidents but your rates are also based on your consumer reports. I doubt there's any problems there for you but if someone just finished paying off a debt it might be a good time to get new quotes.
« Last Edit: September 20, 2017, 05:28:46 PM by JLE1990 »

chasesfish

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #9 on: September 23, 2017, 05:42:01 AM »
I've found I have to competitively shop rates every 2-3 years.  Auto Insurance seems to creep up every year, then I someone is an outlier on price, switch to them, and they raise prices back to the median over a few years.

I'll consider anyone but Geico, maybe most of their employees/claim representatives are fine, but I was treated unprofessionally five years ago when one of their insured drivers hit me.
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Ocinfo

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Re: State Farm increased my auto insurance by 50% for no good reason!
« Reply #10 on: September 23, 2017, 06:20:40 AM »
I dropped State Farm last March after 16 years (only car insurance I ever had). The rates kept going up for no discernible reason (no accidents, high credit score, etc.). I ended up with Geico and cut my rate from $600 to $240 per 6 months with higher coverage limits.

My 6 month renewal just happened and Geico wanted $20 more. I started messing with coverage amounts on their app and was able to raise the deductible to $1k (car is paid off but worth $10k so still worth having collision/comprehensive for now) and up liability to $1 million. I still have renters and a landlord policy through State Farm as they are actually still cheap for those policies.


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