Insurance company games

[Garemlin]

Unbeknownst to me I was driving around for a full month with no insurance. Apparently my last payment made through the State Farm app didn't process. Never got a call or any cancelation notice. I only found out when I went to make this month's payment and I showed no policy.

So I carry my unhappy ass into the State Farm office Monday. I missed the deadline to reinstate by one day. So they have to rewrite a whole new policy. This would also show that I've been driving uninsured for a month. Meaning my premium would probably go up. Had the policy rewritten and what do you know. My premium went down. Down to the tune of almost $120 for 6 months.

This tells me one of two things. Either State farm has been ripping me off. Why didn't I get this rate when I bought my Gladiator back in March??

Or they are rewarding me for driving uninsured for a month. ????

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[FutureOdin]

I've heard horror stories of this exact thing happening with State Farm. They'll just cancel you without any notice... also, one missed payment and they boot you? I'd shop around if I were you.

 

[Mr._Bill]

I use AAA Auto Insurance. I have it setup for Quarterly automatic payments with the Debit card.

 

[Chestnut]

I pay every 6 months and have a different insurer so i've never had to deal with something like this. My rates have gone up easily 20% in the last 2 years though. I hate these games that companies play. They set everything up so the best rates go to those that shop around every year. Internet, trash collection, TV, Insurance are just to name a few.

What happened to the days of giving the best benefit to loyal customers?

 

[WXman]

Same thing happened to my buddy, with his BUSINESS insurance. State Farm cancelled him and never let him know. He was running a store with employees for six months with NO insurance and didn't know it! Ridiculous!

 

[Wheelin98TJ]

Auto pay every 6 months saves me quite a bit of money.

I'm in Michigan where we have BS no-fault insurance, but they did recently change laws so there is no penalty for an uninsured person to get insurance. Not sure how long that will last though.

 

[wchevron]

Our auto insurance policy just renewed with Amica. They said they are switching to 6 month policies vs 1 year. Called a buddy who works for them. He said now if you have an accident, they can raise your rates after the 6 months rather than having to wait a year.

 

[Renegade]

Unbeknownst to me I was driving around for a full month with no insurance. Apparently my last payment made through the State Farm app didn't process. Never got a call or any cancelation notice. I only found out when I went to make this month's payment and I showed no policy.

So I carry my unhappy ass into the State Farm office Monday. I missed the deadline to reinstate by one day. So they have to rewrite a whole new policy. This would also show that I've been driving uninsured for a month. Meaning my premium would probably go up. Had the policy rewritten and what do you know. My premium went down. Down to the tune of almost $120 for 6 months.

This tells me one of two things. Either State farm has been ripping me off. Why didn't I get this rate when I bought my Gladiator back in March??

Or they are rewarding me for driving uninsured for a month. ????

Or your credit rating improved since you were last assessed. That is a driving factor for insurance rates these days.

 

[steveorama]

More than likely you're getting a new policy rate vs a existing policy rate. New policies usually get a lower rate at first to attract new customers. A lot of people jump to different insurers all the time to take advantage of this.

It also could be a rate adjustment, some states go up some states go down by the number of claims filed by state. Sadly, Texas just had a huge rate increase of over 20%. It sucks, I called around and it's affecting all the insurance companies so my insurance wasn't giving me a line.

 

[JTBurns]

Yea best thing to do is shop around every few years. People stay with a company like all-state forever and never really realize how much they're overpaying. Kind of just staying with them out of habit, not to say they don't have great customer service, I believe they do.

We use a broker to shop our home and auto every few years

 

[Orange01z28]

I pay every 6 months and have a different insurer so i've never had to deal with something like this. My rates have gone up easily 20% in the last 2 years though. I hate these games that companies play. They set everything up so the best rates go to those that shop around every year. Internet, trash collection, TV, Insurance are just to name a few.

What happened to the days of giving the best benefit to loyal customers?

Yeah man it sucks. I want to be that loyal customer but it's just not smart to do anymore

 

[Chestnut]

Sadly, Texas just had a huge rate increase of over 20%. It sucks, I called around and it's affecting all the insurance companies so my insurance wasn't giving me a line.

I talked with my agent about our incerases, The insurance refunds when covid started and there was a lage infulx of accidents for what ever reason. Around here it was attributed to higher speeds because of fewer cars on the road. Not sure what to believe though.

 

[steveorama]

I talked with my agent about our incerases, The insurance refunds when covid started and there was a lage infulx of accidents for what ever reason. Around here it was attributed to higher speeds because of fewer cars on the road. Not sure what to believe though.

Similar to what I heard as well as I was told it had to do with the large influx of people who moved to Texas this past year (so more people having/causing accidents). We already have fairly high rates anyway due to the fact we have 3 of the top 10 largest cities in the US (4 if you do the top 11). So the whole state is affected even if you live in a rural county.

 

[Timgco]

Unbeknownst to me I was driving around for a full month with no insurance. Apparently my last payment made through the State Farm app didn't process. Never got a call or any cancelation notice. I only found out when I went to make this month's payment and I showed no policy.

So I carry my unhappy ass into the State Farm office Monday. I missed the deadline to reinstate by one day. So they have to rewrite a whole new policy. This would also show that I've been driving uninsured for a month. Meaning my premium would probably go up. Had the policy rewritten and what do you know. My premium went down. Down to the tune of almost $120 for 6 months.

This tells me one of two things. Either State farm has been ripping me off. Why didn't I get this rate when I bought my Gladiator back in March??

Or they are rewarding me for driving uninsured for a month. ????

I have had State Farm for over 25 years. I had policy get canceled once for the same issue. Didn’t go through on the app. Bit I did get an email, phone call from my branch letting me know. just setup AutoPay every six months. Than you only have to follow up twice a year on payments processing and they‘re automatically drafted.

 

[Wheelin98TJ]

Or your credit rating improved since you were last assessed. That is a driving factor for insurance rates these days.

Depends on the state.

In Michigan they used to factor in credit score, but they no longer do.

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