State Farm Insurance, Time to Leave

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PFInterest
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State Farm Insurance, Time to Leave

Post by PFInterest » Tue Dec 12, 2017 4:46 pm

Just a rant:
Current car insurance for a 17 year old Honda Civic, standard mileage, no collision, and 1K deductible just went up 25% this year.
The other car went up 10% as well.
We have all available discounts including multi line, multi car, safe driver, loyalty, etc.
Called to confirm that there were no errors, mistakes, etc. Nope, just an across the board increase from State Farm.

....insert moderator deleted items here....

So my question:
Progressive or Geico?
Something else?

I am voting with my feet.
I do not own BRK shares, I do not have access to USAA, I have read multiple threads. Just looking for fresh answers.

Thanks! :annoyed

miles monroe
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Re: State Farm Insurance, Time to Leave

Post by miles monroe » Tue Dec 12, 2017 5:02 pm

clark howard always answers that question with usaa (if qualified) or amica.

bob60014
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Re: State Farm Insurance, Time to Leave

Post by bob60014 » Tue Dec 12, 2017 5:12 pm

We switched to Geico years ago after being with Allstate. We never put in any claims with Allstate but the rates went through the roof. Since switching our rates plummeted and haven't increased much since, just a couple dollars. We are quite happy.

furwut
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Re: State Farm Insurance, Time to Leave

Post by furwut » Tue Dec 12, 2017 5:33 pm

Geico gives discounts for membership in a number of organizations beyond owning BRK.

https://www.geico.com/save/discounts/or ... on-member/

test123
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Re: State Farm Insurance, Time to Leave

Post by test123 » Tue Dec 12, 2017 5:52 pm

Had a similiar situation with State Farm (SF) I did an apple:apple comparison on our package (3 auto and homeowners) between SF, progressive, geico, usaa and 1 other (perhaps essurance). Geico was substantially less expensive and we switched. Geico was super easy to deal with before, during and after the traNSITION. We had 1 small claim on an auto and rates remained stable. Homeowners (provided by Liberty mutual via geico) went up 10% at 1st annual renewal for no explainable reason. I will re-shop the package next fall.

Side note--when I dug deeply into the cause of the SF increase I leaned it was related to my "insurance credit score" specifically "excessive revolving credit lines". My wife and I have outstanding credit--ironically the credit score dings we received resulted from our great credit when we took advantage of 0% financing offers on a lawn tractor and furniture purchase within 18 months.

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Nicolas
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Re: State Farm Insurance, Time to Leave

Post by Nicolas » Tue Dec 12, 2017 6:08 pm

I'm using Safeco now. In March I cross-shopped several insurance companies and Safeco was somehow far less than the others, even Geico. I moved homeowners, auto, and umbrella, everything.

PFInterest
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Re: State Farm Insurance, Time to Leave

Post by PFInterest » Tue Dec 12, 2017 6:10 pm

Thanks guys. Appreciate the input.

michaeljc70
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Re: State Farm Insurance, Time to Leave

Post by michaeljc70 » Tue Dec 12, 2017 6:57 pm

Get quotes from all the major companies. I'm not sure why you would just pick a company not knowing the rates.

I dumped State Farm for Progressive around 7 years ago. No issues.

State farm is a dinosaur of a company and I really prefer to call a company directly rather than call an agent who then has to call the company to answer your questions (sometimes). The overhead of all those offices with agents working on commission has to cost something. Progressive had much lower rates too.

wrl
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Re: State Farm Insurance, Time to Leave

Post by wrl » Tue Dec 12, 2017 7:13 pm

I am in the same situation with SF. Sick of the double digit increases with NO claims each year. But I have 5 vehicles (one is an RV), umbrella liability policy and home owners with them with a discount from having all the policies with SF.

So if I switch I assume I will want to switch all of them for the best discount?

I look forward to reading peoples response from those that have been happy with their insurance company over the years.

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dm200
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Re: State Farm Insurance, Time to Leave

Post by dm200 » Tue Dec 12, 2017 7:21 pm

Have had State Farm auto for 45 years and Homeowners for almost 40.

When you have all insurance with State farm (as we do) there is a significant discount.

A good idea, as well, is to regularly review all coverage and details for accuracy (such as miles driven per year, whether to work or school, etc.)

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Steelersfan
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Re: State Farm Insurance, Time to Leave

Post by Steelersfan » Tue Dec 12, 2017 7:21 pm

wrl wrote:
Tue Dec 12, 2017 7:13 pm
I am in the same situation with SF. Sick of the double digit increases with NO claims each year. But I have 5 vehicles (one is an RV), umbrella liability policy and home owners with them with a discount from having all the policies with SF.

So if I switch I assume I will want to switch all of them for the best discount?
That's probably true but there have been exemptions reported in previous threads asking that question.

J.D. Power survey on the order of 10,000 people who have insurance at the different companies. That's probably a more reliable source than anecdotal information than someone who doesn't live where you do. Rates vary considerably by company in different parts of the U.S. and for different categories of drivers.

http://www.jdpower.com/ratings/industry/insurance

p.s. I switched from State Farm to Erie Insurance a few years ago.

Ruger
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Re: State Farm Insurance, Time to Leave

Post by Ruger » Tue Dec 12, 2017 8:16 pm

State Farm has made large increases to my auto insurance, and moderate increases to my home and rentals insurance.
I'm going to start getting quotes from other companies, the increases SF has made this year are unreasonable.

PFInterest
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Re: State Farm Insurance, Time to Leave

Post by PFInterest » Tue Dec 12, 2017 8:16 pm

dm200 wrote:
Tue Dec 12, 2017 7:21 pm
Have had State Farm auto for 45 years and Homeowners for almost 40.

When you have all insurance with State farm (as we do) there is a significant discount.

A good idea, as well, is to regularly review all coverage and details for accuracy (such as miles driven per year, whether to work or school, etc.)
you might be a prime example as someone to look around at different companies as well.

michaeljc70
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Re: State Farm Insurance, Time to Leave

Post by michaeljc70 » Tue Dec 12, 2017 8:28 pm

PFInterest wrote:
Tue Dec 12, 2017 8:16 pm
dm200 wrote:
Tue Dec 12, 2017 7:21 pm
Have had State Farm auto for 45 years and Homeowners for almost 40.

When you have all insurance with State farm (as we do) there is a significant discount.

A good idea, as well, is to regularly review all coverage and details for accuracy (such as miles driven per year, whether to work or school, etc.)
you might be a prime example as someone to look around at different companies as well.
He's probably one of their favorite customers.

That being said, if you've had claims or tickets, it makes switching more complicated and sometimes not possible.

fsrph
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Re: State Farm Insurance, Time to Leave

Post by fsrph » Tue Dec 12, 2017 8:32 pm

A few years ago I had the same situation as you. Long time State Farm customer and the yearly rate increases really added up over time. After looking at my options I went with Geico. Very happy with my choice. Received higher amounts of insurance for significantly less money. Geico also has a discount if you take an approved safe driving course.

Upon renewal, Geico did raise my rates but only slightly. Happy to have made the change.

Francis
"Success is getting what you want. Happiness is wanting what you get." | Dale Carnegie

johnnyc321
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Re: State Farm Insurance, Time to Leave

Post by johnnyc321 » Tue Dec 12, 2017 9:18 pm

Can never figure out why people are loyal to insurance companies. They won't be loyal to you when have a claim. I'm learning that now with our home insurance and damage from Hurricane Irma.

PFInterest
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Re: State Farm Insurance, Time to Leave

Post by PFInterest » Tue Dec 12, 2017 9:52 pm

michaeljc70 wrote:
Tue Dec 12, 2017 8:28 pm
That being said, if you've had claims or tickets, it makes switching more complicated and sometimes not possible.
Neither but agree.

JBTX
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Re: State Farm Insurance, Time to Leave

Post by JBTX » Tue Dec 12, 2017 10:04 pm

PFInterest wrote:
Tue Dec 12, 2017 4:46 pm
Just a rant:
Current car insurance for a 17 year old Honda Civic, standard mileage, no collision, and 1K deductible just went up 25% this year.
The other car went up 10% as well.
We have all available discounts including multi line, multi car, safe driver, loyalty, etc.
Called to confirm that there were no errors, mistakes, etc. Nope, just an across the board increase from State Farm.

....insert moderator deleted items here....

So my question:
Progressive or Geico?
Something else?

I am voting with my feet.
I do not own BRK shares, I do not have access to USAA, I have read multiple threads. Just looking for fresh answers.

Thanks! :annoyed
My GEICO premiums have increased almost 50% since we went with them some number of years ago. They have increased about 5%-10% each of the last 6 months.

Alan S.
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Re: State Farm Insurance, Time to Leave

Post by Alan S. » Tue Dec 12, 2017 10:24 pm

I replaced my State Farm renewal a couple years back for the same reasons, unrelenting rate increases. Further, their Homeowners rating plan did not reflect the actual costs of the components. They had large credits for several things, more than the credits were actually worth, but they were applied to extremely high base premiums. Perhaps they were banking on policy holders looking at all the credits and interpreting that as a competitive premium. Bottom line it was not due to the high base premiums.

Replaced with Travelers direct, they were lower than both Progressive and Geico and various other combinations. Our personal insurance is Homeowners driven, as we carry NO physical damage on the autos due to their age.

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steadyeddy
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Re: State Farm Insurance, Time to Leave

Post by steadyeddy » Tue Dec 12, 2017 10:27 pm

Insurance is a product where everyone pays a different price based on a huge number of variables. It doesn’t make any sense to compare anecdotes on a forum, but it does make sense to get competitive quotes every one to three years.

2comma
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Re: State Farm Insurance, Time to Leave

Post by 2comma » Tue Dec 12, 2017 10:39 pm

johnnyc321 wrote:
Tue Dec 12, 2017 9:18 pm
Can never figure out why people are loyal to insurance companies. They won't be loyal to you when have a claim. I'm learning that now with our home insurance and damage from Hurricane Irma.
Me either. Homeowners and auto insurance should be shopped every few years to compare rates, things change. The other determining factor, probably the most important to most of us is how well they handle claims. I have no idea how to find factual information for that - just a bunch of anecdotal evidence.

We had a huge tree fall onto another tree in the backyard. Removal involved a crane and was over $1300 (20 years ago). Insurance - that's an act of God. So what if it hit my house (tree guy said it would have gone to the foundation). Insurance - we'd pay to remove the part of the tree on your house and repair the damages. Maybe it should be called house-only insurance.
If I am stupid I will pay.

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dwickenh
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Re: State Farm Insurance, Time to Leave

Post by dwickenh » Tue Dec 12, 2017 11:02 pm

Just finished my first year with Esurance and did not get any rate increase for year 2. I will watch it closely and vote with my feet if they start jacking up the rates. No reason to be loyal to an Insurance Company as they could care less about your loyalty- only your wallet. Disclosure: retired from Insurance claims division.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

afan
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Re: State Farm Insurance, Time to Leave

Post by afan » Wed Dec 13, 2017 5:10 am

You simply have to shop every few years. Insurance companies have complex practices for setting rates and gambling how many people will pay price increases rather than switch. We have had SF for years and our rates are consistently better than any competitor when we comparison shop.

But other people may find better deals with different companies.

Discussion of auto insurance pricing and links to more information:https://www.consumerreports.org/cro/car ... ance-schmo
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

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bengal22
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Re: State Farm Insurance, Time to Leave

Post by bengal22 » Wed Dec 13, 2017 6:03 am

We have had State Farm for car and house for over 30 years and have never had the kind of rate increases some have mentioned. They have also been very responsive and more than fair when needed. We have comparison shopped over the years and have never got a better price. We would recommend State Farm.
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carolinaman
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Re: State Farm Insurance, Time to Leave

Post by carolinaman » Wed Dec 13, 2017 7:27 am

Long time State Farm customer with auto, homeowner and umbrella insurance in NC. I received a dramatic auto increase this year from State Farm. I got quotes from Geico, Amica and Ameriprise (Costco). Geico and State Farm were virtually the same price for year. The other two were substantially higher. I chose to stay with State Farm. Their service is good and no reason to change unless I can save money elsewhere. YMMV depending on your situation and state.

afan
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Re: State Farm Insurance, Time to Leave

Post by afan » Wed Dec 13, 2017 8:38 am

I should mention that those of us who are long term State Farm customers appear to benefit from discounts. When I have comparison shopped the premiums quoted by other insurers were at least comparable to the State Farm rates before discounts. Not better but in the ballpark. After the State Farm discounts it has never been close.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

Golf_Nut
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Re: State Farm Insurance, Time to Leave

Post by Golf_Nut » Wed Dec 13, 2017 9:59 am

Although I am current SF policy holder, I received nothing but the best rates from AAA in the past. Consistently unable to beat their rates with other companies. Have not experienced the rate increases as you mention.

Rick

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dm200
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Re: State Farm Insurance, Time to Leave

Post by dm200 » Wed Dec 13, 2017 10:03 am

bengal22 wrote:
Wed Dec 13, 2017 6:03 am
We have had State Farm for car and house for over 30 years and have never had the kind of rate increases some have mentioned. They have also been very responsive and more than fair when needed. We have comparison shopped over the years and have never got a better price. We would recommend State Farm.
Neither have we faced such large increases in any year.

talzara
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Re: State Farm Insurance, Time to Leave

Post by talzara » Wed Dec 13, 2017 12:05 pm

PFInterest wrote:
Tue Dec 12, 2017 8:16 pm
dm200 wrote:
Tue Dec 12, 2017 7:21 pm
Have had State Farm auto for 45 years and Homeowners for almost 40.

When you have all insurance with State farm (as we do) there is a significant discount.

A good idea, as well, is to regularly review all coverage and details for accuracy (such as miles driven per year, whether to work or school, etc.)
you might be a prime example as someone to look around at different companies as well.
It's often impossible for a competitor to pry a longtime customer loose from State Farm. Where dm200 lives, GEICO and State Farm have over 50% of the auto insurance market. Nationally, State Farm and GEICO only have 25% of the market.

There are two very important factors that make State Farm unassailable for someone in that situation.

First, State Farm offers a loyalty discount of 10-15%. Most companies offer a loyalty penalty (new customer discount) of 10-15%. Since State Farm is already giving loyal customers the same discount that they would get as a new customer, they won't save anything by switching.

State Farm also has some of the most aggressive bundling discounts in the industry. Most companies have a bundling discount of 10-15%. State Farm has a bundling discount of 25-35%. This makes it harder to switch to a company that offers a smaller bundling discount. It makes it almost impossible to switch to a company that only offers auto insurance.

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dm200
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Re: State Farm Insurance, Time to Leave

Post by dm200 » Wed Dec 13, 2017 12:13 pm

talzara wrote:
Wed Dec 13, 2017 12:05 pm
PFInterest wrote:
Tue Dec 12, 2017 8:16 pm
dm200 wrote:
Tue Dec 12, 2017 7:21 pm
Have had State Farm auto for 45 years and Homeowners for almost 40.
When you have all insurance with State farm (as we do) there is a significant discount.
A good idea, as well, is to regularly review all coverage and details for accuracy (such as miles driven per year, whether to work or school, etc.)
you might be a prime example as someone to look around at different companies as well.
It's often impossible for a competitor to pry a longtime customer loose from State Farm. Where dm200 lives, GEICO and State Farm have over 50% of the auto insurance market. Nationally, State Farm and GEICO only have 25% of the market.
There are two very important factors that make State Farm unassailable for someone in that situation.
First, State Farm offers a loyalty discount of 10-15%. Most companies offer a loyalty penalty (new customer discount) of 10-15%. Since State Farm is already giving loyal customers the same discount that they would get as a new customer, they won't save anything by switching.
State Farm also has some of the most aggressive bundling discounts in the industry. Most companies have a bundling discount of 10-15%. State Farm has a bundling discount of 25-35%. This makes it harder to switch to a company that offers a smaller bundling discount. It makes it almost impossible to switch to a company that only offers auto insurance.
Thanks for the added State Farm information. This explains why our premiums seem to be lower than I hear from others with different companies. Sure makes sense (to me) to give a loyalty discount to good, current customers and not charge current customers a "penalty" (by discounts to new customers).

Also, in chats with friends, acquaintences, etc. I am very surprised how many folks have different companies for different insurance (Homeowner/renters and car insurance). They seem to not understand that you can get signnificant discounts by having all insurance with the same company.

talzara
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Re: State Farm Insurance, Time to Leave

Post by talzara » Wed Dec 13, 2017 12:26 pm

JBTX wrote:
Tue Dec 12, 2017 10:04 pm
My GEICO premiums have increased almost 50% since we went with them some number of years ago. They have increased about 5%-10% each of the last 6 months.
Often this means that you received a very large rate shock. It could be +50%, it could be +100%, or it could be even higher. The insurance company wants to manage churn, so they've capped your rate increases to 5-10%. They'll keep increasing your premium 5-10% at a time until it catches up to the calculated premium.

I once saw a rate filing with a -80% to +400% rate change that was revenue neutral. One very lucky customer saw an 80% rate decrease, and one very unlucky customer saw a 400% rate increase. Of course, the rate shock was phased in over many years.

If those two customers were both posting on a Bogleheads insurance thread, they would have very different stories to tell.
steadyeddy wrote:
Tue Dec 12, 2017 10:27 pm
Insurance is a product where everyone pays a different price based on a huge number of variables. It doesn’t make any sense to compare anecdotes on a forum, but it does make sense to get competitive quotes every one to three years.
I think people post anecdotes because they want to vent about their previous insurance company. They're interesting because they show how different the experiences can be. However, they won't apply to the OP, who probably lives in a different state and has different rating variables.

talzara
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Re: State Farm Insurance, Time to Leave

Post by talzara » Wed Dec 13, 2017 1:12 pm

2comma wrote:
Tue Dec 12, 2017 10:39 pm
Me either. Homeowners and auto insurance should be shopped every few years to compare rates, things change. The other determining factor, probably the most important to most of us is how well they handle claims. I have no idea how to find factual information for that - just a bunch of anecdotal evidence.

We had a huge tree fall onto another tree in the backyard. Removal involved a crane and was over $1300 (20 years ago). Insurance - that's an act of God. So what if it hit my house (tree guy said it would have gone to the foundation). Insurance - we'd pay to remove the part of the tree on your house and repair the damages. Maybe it should be called house-only insurance.
That's not a matter of claims handling. Coverage for fallen trees is determined by your policy.

The ISO HO-3 policy only covers $500 to remove a fallen tree, and $1000 to remove two or more fallen trees. This does not count towards your deductible. You're only covered if the tree hits your house, blocks your driveway, or blocks a handicapped ramp to your door.

Your policy may be different. The small insurance companies usually use ISO, and the large insurance companies usually use their own policy.

talzara
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Re: State Farm Insurance, Time to Leave

Post by talzara » Wed Dec 13, 2017 1:14 pm

dm200 wrote:
Wed Dec 13, 2017 12:13 pm
Also, in chats with friends, acquaintences, etc. I am very surprised how many folks have different companies for different insurance (Homeowner/renters and car insurance). They seem to not understand that you can get signnificant discounts by having all insurance with the same company.
It's possible to save money by buying policies from different companies. It's just hard to do it with State Farm as one of the companies, because their bundling discount is so aggressive.

A lot of GEICO and Progressive auto insurance policies are unbundled. The bundling discounts are so small that you can easily beat them by shopping your own homeowners policy. GEICO doesn't even underwrite its own homeowners policies. Progressive owns a homeowners insurer, but it's not competitive and they'll usually place you with an unaffiliated company.

michaeljc70
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Re: State Farm Insurance, Time to Leave

Post by michaeljc70 » Wed Dec 13, 2017 6:58 pm

talzara wrote:
Wed Dec 13, 2017 12:05 pm
PFInterest wrote:
Tue Dec 12, 2017 8:16 pm
dm200 wrote:
Tue Dec 12, 2017 7:21 pm
Have had State Farm auto for 45 years and Homeowners for almost 40.

When you have all insurance with State farm (as we do) there is a significant discount.

A good idea, as well, is to regularly review all coverage and details for accuracy (such as miles driven per year, whether to work or school, etc.)
you might be a prime example as someone to look around at different companies as well.
It's often impossible for a competitor to pry a longtime customer loose from State Farm. Where dm200 lives, GEICO and State Farm have over 50% of the auto insurance market. Nationally, State Farm and GEICO only have 25% of the market.

There are two very important factors that make State Farm unassailable for someone in that situation.

First, State Farm offers a loyalty discount of 10-15%. Most companies offer a loyalty penalty (new customer discount) of 10-15%. Since State Farm is already giving loyal customers the same discount that they would get as a new customer, they won't save anything by switching.

State Farm also has some of the most aggressive bundling discounts in the industry. Most companies have a bundling discount of 10-15%. State Farm has a bundling discount of 25-35%. This makes it harder to switch to a company that offers a smaller bundling discount. It makes it almost impossible to switch to a company that only offers auto insurance.
I was going to mention this. Some companies give a discount to new customers to get them and then the rates go up after 1-2 years. You have to take that into account by looking at exactly what discounts they are giving you.

CurlyDave
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Re: State Farm Insurance, Time to Leave

Post by CurlyDave » Thu Dec 14, 2017 3:07 am

I have had all of my insurance with State Farm for at least 30 years. Right now that is 6 cars, Homeowners, umbrella, 3 rental properties, personal articles, tractor, camping trailer, and DW's consulting business.

About 9 years ago our house burned down while it was up for sale. I thought SF was being completely unfair on their coverage and hired a Public Adjustor. He and I ultimately beat them into paying the policy limits.

Because of what I perceived as SF's very poor treatment of my claim, I asked the Public Adjustor for a recommendation on who to change my policy to. Now this is a guy who deals with presenting claims to all of the various insurance companies, and in many cases, highly contested claims. He didn't really want to answer that question, so I followed up with an easier one. "Who do you have your insurance with?" The answer was astounding: "State Farm".

Now, admittedly this is only a single data point, but the fact that someone who presents more claims to insurance companies in a week than most people do in a lifetime has his own personal insurance with State Farm is all I needed to know.

HIinvestor
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Re: State Farm Insurance, Time to Leave

Post by HIinvestor » Thu Dec 14, 2017 3:46 am

We have an independent insurance agent. She helps us select policies and companies on premiums AND how well they treat their policyholders if a claim has to be made.

We are mostly insured by our small local insurer who offers much better rates and service than we have had with the national companies. We have had low rates in our 3 very old cars with two drivers (no tickets nor accidents), homeowner’s, flood, hurricane and umbrella. Premiums haven’t changed much over the years for us and we rarely file any claims. She also gets our policies for our rental properties and our nonprofit.

michaeljc70
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Re: State Farm Insurance, Time to Leave

Post by michaeljc70 » Thu Dec 14, 2017 7:00 am

HIinvestor wrote:
Thu Dec 14, 2017 3:46 am
We have an independent insurance agent. She helps us select policies and companies on premiums AND how well they treat their policyholders if a claim has to be made.

We are mostly insured by our small local insurer who offers much better rates and service than we have had with the national companies. We have had low rates in our 3 very old cars with two drivers (no tickets nor accidents), homeowner’s, flood, hurricane and umbrella. Premiums haven’t changed much over the years for us and we rarely file any claims. She also gets our policies for our rental properties and our nonprofit.
You don't think her commission plays any role in what she she presents to you? Do you think she works with companies that pay no commission or a low commission?

UALflyer
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Re: State Farm Insurance, Time to Leave

Post by UALflyer » Thu Dec 14, 2017 8:01 am

CurlyDave wrote:
Thu Dec 14, 2017 3:07 am
I have had all of my insurance with State Farm for at least 30 years. Right now that is 6 cars, Homeowners, umbrella, 3 rental properties, personal articles, tractor, camping trailer, and DW's consulting business.

About 9 years ago our house burned down while it was up for sale. I thought SF was being completely unfair on their coverage and hired a Public Adjustor. He and I ultimately beat them into paying the policy limits.

Because of what I perceived as SF's very poor treatment of my claim, I asked the Public Adjustor for a recommendation on who to change my policy to. Now this is a guy who deals with presenting claims to all of the various insurance companies, and in many cases, highly contested claims. He didn't really want to answer that question, so I followed up with an easier one. "Who do you have your insurance with?" The answer was astounding: "State Farm".

Now, admittedly this is only a single data point, but the fact that someone who presents more claims to insurance companies in a week than most people do in a lifetime has his own personal insurance with State Farm is all I needed to know.
What exactly does his answer tell you? A person who fights insurance companies for a living and knows how to maximize his recovery is likely to care a lot less about how his particular insurance carrier handles claims because he knows that either way he will get what is owed to him and is very comfortable fighting for it.

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EyeYield
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Re: State Farm Insurance, Time to Leave

Post by EyeYield » Thu Dec 14, 2017 9:19 am

CurlyDave wrote:
Thu Dec 14, 2017 3:07 am
I have had all of my insurance with State Farm for at least 30 years. Right now that is 6 cars, Homeowners, umbrella, 3 rental properties, personal articles, tractor, camping trailer, and DW's consulting business.
Are you aware that a State Farm Visa card offers 3x's points when used to buy State Farm products, which then can be used to pay premiums?

Another happy SF customer here - auto, home, earthquake, umbrella and Medigap Plan F payed for with SF Visa.
"The stock market is a giant distraction from the business of investing." - Jack Bogle

Jack FFR1846
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Joined: Tue Dec 31, 2013 7:05 am

Re: State Farm Insurance, Time to Leave

Post by Jack FFR1846 » Thu Dec 14, 2017 9:35 am

I would also recommend a GOOD independent agent. Mine has really helped me over the years.

When my insurer was gobbled up by another and raised rates unilaterally above market, my agent proactively contacted me and recommended a better company. I made the switch and saved money.

When my circumstances change, my agent is right on top of things and if a different company is more appropriate, we switch. For example, my son's in college. The old company didn't give low mileage discount or good student discount. He's at college with a car that spends most of its time sitting. Switched to a company that gave us those discounts on top of AAA and all the benefits from the old company.

All of my insurance is with this agent. Cars, home, umbrella. They found a new umbrella provider when the old one was unhappy that I was a HPDE volunteer instructor even though the club I instructed with had a multi-million dollar policy. (Basically, I instruct students how to drive on the racetrack in controlled, near-race conditions). They found a new company who was fine with my activity and the fact that I had an unregistered, uninsured racecar and the policy reflected this. I think it cost me an extra $6 (six dollars) a year. It took 6 months for the agency to find the company.

For a short time, I worked for a company with an in house Met Life agency and tried them for snowmobile insurance. I got literally a different answer from the new high school aged agent every time. I didn't stay there past that one winter season. What a mess.

The theory is that a captive company can't give you options. If you tell a State Farm agent that their policy is not competitive, what are they going to do? Tell you about the cheaper Progressive policy? I don't think so. An independent can and will shop around. When looking for the umbrella, in order to get rates, I had to formally apply for a policy for every company. The agent faxed me all the forms filled out except my signature and I signed and faxed them all back. They could then compare rates from companies who don't provide rates openly. Are you going to spend hours doing this? A good agent will when needed. The agents I work with have been at the agency for many years. Most I speak with, for 10 years or longer. They actually know what they're doing, which you really can't assume with everyone.
Bogle: Smart Beta is stupid

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N1CKV
Posts: 716
Joined: Wed Mar 21, 2012 8:18 am

Re: State Farm Insurance, Time to Leave

Post by N1CKV » Thu Dec 14, 2017 10:16 am

For the original question:
Check them all directly and check with an independent agent.
My independent agent was able to get me a better rate through Progressive than I could get directly. They also know who is giving the best rates to a person in your particular position (lately...). They have access to way more companies than you.
Jack FFR1846 wrote:
Thu Dec 14, 2017 9:35 am
I would also recommend a GOOD independent agent. Mine has really helped me over the years.[\quote]
I could not agree more with this statement.
The theory is that a captive company can't give you options. If you tell a State Farm agent that their policy is not competitive, what are they going to do? Tell you about the cheaper Progressive policy? I don't think so. An independent can and will shop around.
They might...
My agent is independent. He formerly worked for a State Farm agent. A lot of his referrals come from that agent and their staff when they are unable to quote (because of nuances with SF policy) or unable to offer a satisfying quote to a customer.
My agent is a close friend I grew up with. He holds my homeowners and flood policies, but not my Auto. He did have my auto at one point, but when Geico undercut him by half I had to move along, he understood. I have always told him that the personal service with him was worth something to me, as long as he is competitive he will have my business - I would rather put food on his table than some stranger.
I have met a lot of people that claim to love money, but they also seem to be the same people that are in the biggest hurry to get rid of it.

afan
Posts: 3433
Joined: Sun Jul 25, 2010 4:01 pm

Re: State Farm Insurance, Time to Leave

Post by afan » Thu Dec 14, 2017 10:59 am

When I comparison shop my insurance portfolio I both contact the captive companies and independent agents. The independent agents have been able to pick and choose among multiple carriers and put together proposals that include more than one company. So far that still has not been competitive with leaving everything at State Farm.

Because all prices are individual I don't know what our costs would be if we were new State Farm customers. Their quotes give figures but who knows whether they are real. After the discounts they apply their prices have beat any other quotes we have gotten. By a lot.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

STINGRAY75
Posts: 38
Joined: Wed Nov 04, 2015 3:57 pm
Location: SE Wisconsin

Re: State Farm Insurance, Time to Leave

Post by STINGRAY75 » Thu Dec 14, 2017 11:33 am

Been a loyal SF customer for 40+ years and have market tested pricing a few times. With the exception of a couple motorcycles, pricing was in line . . . Until 2016 when rate increases began. Our loyalty was “rewarded” in 2017 when we sold our permanent home and SF adjusted for not being a homeowner. The double digit increases with another expected when the next vehicle renewal comes around has me shopping as well.

DanMahowny
Posts: 269
Joined: Sun Aug 06, 2017 8:25 pm

Re: State Farm Insurance, Time to Leave

Post by DanMahowny » Thu Dec 14, 2017 12:35 pm

It's wise to switch insurance companies every 4-7 years.

Loyalty is punished.

czr
Posts: 156
Joined: Wed Dec 17, 2014 8:40 pm

Re: State Farm Insurance, Time to Leave

Post by czr » Thu Dec 14, 2017 12:36 pm

State Farm increased our automobile policy as well by 10% recently and shopped five other carriers. Geico was same price. Allstate, AAA, Mercury, all more expensive and Progressive came in cheaper and saved me 20% over SF's new prices. I was with SF for 10+ years and had home bundled. Keeping home policy with them.

Malinois000
Posts: 118
Joined: Sun Feb 26, 2017 6:08 pm

Re: State Farm Insurance, Time to Leave

Post by Malinois000 » Thu Dec 14, 2017 7:59 pm

30 plus year satisfied State Farm customer!! 3 autos, home, Life, PLUP, PAP etc.

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Steelersfan
Posts: 3422
Joined: Thu Jun 19, 2008 8:47 pm

Re: State Farm Insurance, Time to Leave

Post by Steelersfan » Thu Dec 14, 2017 8:10 pm

Just a follow-up to my previous post where I said I switched from State Farm to Erie.

When I got quotes for a bundle of all my insurance the rates were almost identical. I chose Erie because I had them for one policy and State Farm for the other. I just liked the Erie agent a little bit better. It wasn't rate that got me to change, and I had not experienced unusual rate increases from them in the 30 years I had an auto policy with them.

MrPotatoHead
Posts: 349
Joined: Sat Oct 14, 2017 10:41 pm

Re: State Farm Insurance, Time to Leave

Post by MrPotatoHead » Thu Dec 14, 2017 9:07 pm

Like a bad nightmare, Snake Farm is there

Seriously, call them and ask them the basis of the rate increase. The answer may surprise you. You may find they are the first to raise rates due to demographic changes in your area, State law changes on insurance or the liability potential due to sate legislation etc which simply means in a year or so other companies will follow suit. Also ask what you can do to lower your premium. You may be surprised how helpful they can be. Well, I should say of they were any other company other than Snake farm they might be helpful. A Snake farm rep is more likely to tell you that you should be honored to be selected as a customer by them. But most companies have very helpful representatives. USAA has found all types of creative ways to help me keep my HO premium under 320 a year.

Be aware with auto, if you are going beyond just liability of the fine print regarding OEM parts etc.

And one last thing, I would avoid Allstate at all costs.

PFInterest
Posts: 1243
Joined: Sun Jan 08, 2017 12:25 pm

Re: State Farm Insurance, Time to Leave

Post by PFInterest » Fri Dec 15, 2017 11:36 am

Thanks again everyone.

mouses
Posts: 3125
Joined: Sat Oct 24, 2015 12:24 am

Re: State Farm Insurance, Time to Leave

Post by mouses » Fri Dec 15, 2017 11:41 am

State Farm handled my flood insurance in California. They made things very stressful after a claim when a creek overflowed. They sent out an idiot person who wrote a report saying the water flowed opposite to the way I saw it flow and so it couldn't have taken out the fence it took out, etc.

I know the state eventually sued them for not paying or not fully paying claims for some event.

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