State Farm's new way to screw you for more money

[Volkspanzer]

About 4 months ago I called my agent for a quote on the 85 vette I just bought. I figured I would wait untill after the threat of snow before I purchased it. Anyway, I already have a 2005 Wrangler insured and when I called for the quote it was $600 a year for full coverage 4 months ago. 2 weeks ago when I actually bought the car I called to put it on my policy and my agent says it will be $1200 a year. I said why in the hell did it double in 4 months?? She says "State Farm just started a new program where we run credit checks on policy holders ADDING a vehicle." She says State Farm's research shows that an added vehicle is statisticly more liable to be in an accident than an already insured vehicle. WTF?? What the hell does that have to do with your credit score?? I don't have the best credit but it's not the worst either, but to double the premium?

 

[81kix]

Sooo... I hope you are going to dump "State Farm"?

 

[Edmond]

Best thing to do now is to start shopping around. Try Geico, I find their customer service is quite exceptional and their rates are reasonable. Get a quote from Geico and use that to see if State Farm will be more reasonable. Either that or try a different State Farm agent.

 

[3dale1]

Adding my 85 last year (with no collision) cost an extra 160 every six months........here in PA too! I finally replied to one of those unsolicited insurance offers in the mail, this time it was AIG. It was well worth it; wish I had done it sooner!

I had been a GEICO customer for about 10 years prior to this,

 

[3dale1]

Adding my 85 last year (with no collision) cost an extra 160 every six months........here in PA too! I finally replied to one of those unsolicited insurance offers in the mail, this time it was AIG. It was well worth it; wish I had done it sooner!

I had been a GEICO customer for about 10 years prior to this, and although I was happy with them, I cut my rate by about 60% (yea 60%) by switching. All coverages for 2 cars stayed the same, safe driver, etc. and yes they are starting to check credit reports:eyerole . Shop around!

 

[89sleeper]

I've been with State Farm since I turned 16 and started driving and I am now 51 years old and have never had a problem and always had good rates!

 

[lagasvd]

I added my 86 convertable to my state farm policy here in PA and it was $156 every six months full coverage on an agreed amount value. Couldn't ask for a better rate. I'd check around for another agent.

 

[Volkspanzer]

I've been with State Farm since I turned 16 and started driving and I am now 51 years old and have never had a problem and always had good rates!

Ya, I've been with them since 1997 and had no problems either... untill now. I just think it's crazy to double an insurance premium on someone who's already an established policy holder for 9+ years.

 

[bobs78]

Just a thought...Are you sure you didn't misinterpret the first quote as being for a full year vs 6 months at $600 (2x600=1,200)? The normal premium period for State Farm is only six months. I don't know how they could quote you a full year when they adjust their premiums every six months.

 

[Volkspanzer]

I'm sure. I always confirm the annual premium and monthly payment when I call about a car. I don't seem to recall my premiums changing unless I made changes myself like deductables and such.

 

[vett boy]

You have no friends in the insurance business -ever.

 

[SPANISHVETTS]

You have no friends in the insurance business -ever.

Insurance people make lawyers look sweet.

 

[c4cruiser]

Your credit report or credit score is being used by a number of insurance companies to set rates or even determine if you can get insurance from them. The thought is that people who can manage their money are better risks than those who can't. Whether it's right or wrong is probably up to the various state Legislatures at some point.

As far as the quote, make sure it's for the specific policy period. Most companies do renewals every six months.

 

[Toms007]

State Farm pulled a similar deal on me when I moved from a larger, more congested city to a more rural area with fewer cars, etc. Made absolutely no sense. My premiums skyrocketed......screw you and the horse you rode in on. I will not do business with State Farm again.....ever. Right now I'm with Shelter and the premiums are very reasonable.

 

[2tone81]

Dumped Liberty Mutual for playing the same game withmy Vette . I was with them 30 years. I guess it doesn't matter how you treat your long term customers when you are busy raising your bottom line and pumping your stock price and stock options. I opted for Allstate with a rider policy for Haggerty for the Vette. Well worth the change.

 

[KREX 725]

I guess it doesn't matter how you treat your long term customers when you are busy raising your bottom line and pumping your stock price and stock options.

Isn't that the freakin' truth! It ticks me off how many companies out there only care about attracting new customers and do very little or nothing to keep the current customers happy. Why does my cable (TV & Internet) bill skyrocket when I've been with them for years and new customers get it for 75% off what I pay??? Why does my credit card APR routinely go up each year when a new customer gets 0%??? Same thing with cell phones, bank accounts, etc. Of course I realize my higher prices are expected to cover the losses of the deals for new customers, but come on... I'm sure they have some wiz accountant who can tell them they're making more money this way, but I would think it would be better to keep me over the long haul and keep milking me for a reasonable interest rate/monthly fee than make me keep switching. I for one hold grudges over this kind of thing so the chances of me ever coming back to them are slim. :confused

As far as this thread, I'm shocked to say (especially considering my rant just now) that State Farm has actually been good to me and my vette. It has routinely gone down a couple of bucks every year and saw a good discount when I switched zip codes to a safer neighborhood. Then again, the girl who set up my account couldn't stop raving about her dad's C4, so maybe she pulled some strings...

 

[mkapp7879]

I've had State Farm for 30+ years with no problems BUT they can be stupid sometimes. Stopped by their office last month to see what they could do for me with my white 79. Had Hagerty on it. State Farm quoted me $60 per year(Antique plates, limited driving). Three times she confirmed $60 per year. Had her print the info out so I had it in May when my Hagerty runs out. Printed out at $60 per 6 months, $120 per YEAR. Showed her the printout, duh!! Still not bad but can't they pay more attention to what they're doing? Mike

 

[KANE]

Best thing to do now is to start shopping around. Try Geico, I find their customer service is quite exceptional and their rates are reasonable. Get a quote from Geico and use that to see if State Farm will be more reasonable. Either that or try a different State Farm agent.

I dumped GEICO for playing games with me when another guy struck my '78. It seems GEICO agreed with Fam Beauro- a 20 year old car with $3k in damage done by a negligent driver, was worth only $500. Both companies agreed that at 10% devaluation left me with less than the cost of the damage- but 10% was their standard devaluation. Therefore, $500 seemed fair.

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So, I called GEICO back and asked when my coverage expired. Then, I called another company and asked them to start 1 minute later. GEICO had the nerve to turn me in to a collection agency-- in an attempt to strong arm me into finishing out the 6 months with them. Oooooohhh- I was REALLY mad after that!

 

[89redvette]

I pay $1200 a year w/state farm for my '89 w/collison & full glass in metro phoenix.

 

[Rufus1050]

I hate to be the one to tell you that SF is one of the agencies that took an astronomical hit with the hurricanes along the coast last year. They've got to recoup some of their costs and all their customers across the nation will help in their recovery effort. Look for some of the others such as allstate, farmers bureau, etc to follow suit. You probably need to seek a company that just insures auto and not all other lines such as casualty, homes, etc...I think you get the picture. Good luck with your search. Oh, my premiums have increased also but on existing vehicles, boats and rv's. They love me...know what I mean? Yes!!!