sghokie

Wanted to share my story of some insurance issues mostly for reference.
For the last 20 years my wife and I have been under State Farm. In general we received pretty good service.
Last month my 22yo step daughter totaled her car and another car in the process. All together that slipup was worth 25k. About 2 years ago she had a fender bender worth $4500. And had 2 moving violation tickets in the last 5 years. Several not at fault accidents that were handled by the offenders insurance. Pretty bad record really. My wife has always kept her on a separate policy with State Farm, because I didn't want to have my policies be affected.

SF was pretty good on the totaled car and there were no hassles, my wife and the kid found a replacement car and called back in and got new insurance without issue, this was about 3 weeks ago. If it was up to me, she would live where there was public transportation available and not have a car.

So this past week I wanted to add a 4th car to my policy (not driven or used by the kid). They took the info and then later in the day, they call me back, SF decided they would drop the 22yo kid from being covered and were asking for a non exposure agreement from me, this basically is a letter stating that the kid would not drive any car that SF insures. I was not at all surprised at this and was pretty much expecting something like this. So basically the separate policy on the kid's car would need to go to another company.

What they did next though did surprise me, what should have been $50 per month coverage on the car I was adding with SF was now $100 a month.

So basically they were dropping the kid and taking out their profit losses on me even though the policies were separate.

Back up about a year ago I decided to shop around for insurance the rates for the same coverages with other companies were about $1000 less annually for the 3 cars I was insuring with SF, however due to the number of MV's the kid had that particular company wanted quite a bit more annually for a separate policy for their car. I decided to just stay with SF since I had been with them for so long and didn't want any hassles with the wife and all.

Well so not wanting to get taken by SF I decided to go insurance shopping last week, my wife had to also to get a new policy for the kid due to the dropping. It was quite an eye opening experience really. I wondered exactly what information would another insurance company know from SF.

Well the answer, everything.

They knew about every ticket, every claim, even the not at fault incidents that SF didn't even pay out anything were in the database.

It is called CLUE stands for Comprehensive Loss Underwriting Exchange.

In any event my wife and I between the 2 of us have no tickets or had any claims really in a very long time. Obtaining insurance was relatively easy. Luckily also I will be saving about $1200 annually over SF rates.

I understand their need to drop the kid, however between that policy and my policies (home + umbrella + personal articles + cars) were worth 7000 per year in revenue to them. So drop off the kids policy and still thats 5500 + annually from 2 people that practically never file any claims or have any tickets.

PaulE550

The age of privacy is sadly long gone. Today almost all aspects related to one's life resides on a database somewhere. When you applied for your new auto insurance, you no doubt had to sign some kind of consent / authorization form, that in fine print gave the new insurance company the right to access your insurance records with State Farm. Thus the new company gained access to everything related to any and all claims filed and the associated driving histories of your family.

As for SF raising your rate even after making you daughter drop her insurance with them, I would just chalk that up to poor customer services practices. Not only didn't they get the extra $50 they were trying to squeeze out of you, but they lost $7,000 in annual premiums in the process.

valleywine

Insurance companies report claims to a database so people cannot double dip. Also it helps with rating the policies for each exposure. You probably saved money because typically, the house brands (State Farm, Allstate, farmers, etc.....)are more expensive than carriers who sell through brokers who can market multiple companies, not just one.

thenew3

State Farm is pretty bad. My parents had been with them for years. then about 2 years ago their car was hit in a parking lot. The other drive didn't look and backed into my parent's car. (my parents weren't even in the car at the time, it was parked). the Mall security held the other person there till my parents came out. They exchanged info but SF refused to pay for the repairs stating that the party that hit them are also SF customers so their corporate policy is they don't pay if both parties are SF.

My dad fought with them for weeks without getting anywhere. In the end he had to pay out of pocket for his own repairs. He promptly left state farm after that, taking his auto, home, and investment property insurance to Farmers where he also got a much lower rate.

I've had Farmers for the past 5 years and have been pretty satisfied with them. Last year I was rear-ended at a red light, the girl that rear-ended me also had Farmers insurance so I was afraid of going through the same thing as what my dad went through. One quick call to farmers and they said not to worry about it, they'll cover everything and get me a rental even though I don't have rental coverage on my policy. Farmers took care of the repairs using all MB original parts (I had OE parts coverage on my policy, the girl that hit me did not).

Farmers also pays out pretty well for totaled cars. 2+ years ago my previous vehicle was totaled when it was side swiped by a mom in a mini van not paying attention to the road (and going 50+ mph in a 25mph school zone). Farmers paid me over 60+ % what I originally paid for my car. This was 6 years after I had purchased the car.

sghokie

My experience with SF is that they always paid out claims without issue. Ironically the parked car my SD hit was also insured by SF. I would have probably stayed with them to just avoid the hassle. Now I am pretty happy to drop them. The spend too much in advertising anyways. Gotta wonder how much money per new customer is spent attracting them. And how much money per existing customer is allocated towards advertising. I don't care much for commercials anyways.

thefisch

I've been with SF for 25 years and they always pay without question on home, auto, etc. About 10 years ago, I hit a deer and had typical front end damage. After we got the car back from that repair, my wife hit another deer with my car within a week. At least I don't think it was the same one. When we took my car to the same shop again, the shop estimator told me that the insurance would give us a hard time since the same thing happened within a month. But when he saw had SF he said we'd have no problems at all. I saw no changes in rates either.

Last year they paid out over $10k to replace the wood flooring in my parents house after a leak under the dishwasher ruined the wood in the kitchen. They replaced all the contiguous wood on the first floor from the back in the kitchen up to the front of the house so it would match - no questions asked. Then they went after GE for the faulty part in the dishwasher and with the recovery from GE paid back 100% of the deductible to my parents first.

I am not sure they drop 'high risks' faster than other companies from what I've heard and experienced. When I moved 7 years ago (too many deer where we used to live), our old house was vacant for two years waiting to sell. When I informed SF of the move, they asked if house was occupied and I told them no. Within a few weeks, I got a letter saying they would drop my home coverage due to the vacancy. As you all recall, there were many issues back then with vacant home of items going missing. At first, I thought SF was screwing me over, but I could not get anyone else to cover me. My SF agent told me what to do to keep my coverage and they covered it until it sold.

Others may be cheaper, but no one is better IMO.

sghokie

I would have kept them and continued to pay the 20% higher rates that I was already paying vs other companies, but when they start doubling my rates to try and make up for someone who isn't even insured by them, thats when I draw the line.

hyperion667

this is partially why I only pay the minimum....liability.......if someone hits me...okay......they'll pay......but if it's my fault......I'll accept it and pay, then move on instead of paying for the 'what if' BS.......


I was rear ended a few weeks ago in my CLS, I was backing out and someone hit me......my fault.......within three hours SF called to ask me about it.....asking for pictures and info......they were pissed when I asked them why!! I wasn't the one making a claim so why do I need to provide evidence?
I thought it was amusing they lady was so put off........I wasn't rude; just firm in my position of not giving them anything........

thefisch

Sorry to hear about your accident. how much damage was done to your CLS?

If you own the car with no debt, you have the option of going liability only. For most folks, collision and comprehensive are required so the lienholder can protect their interest.

hyperion667

that's a good point, have never had a lease........


sorry to hijack the thread haha: had to replace the bumper and that was all, pretty lucky considering.......had just changed wheels too, no damage to the taillight or my diffuser......*phew*
now I have a 'repaired' and primed bumper in case it happens again
few pictures here:
https://mbworld.org/forums/w218/5795...mper-damn.html

Diamond White W212

So you would rather your insurance company pay a claim to someone else without ever verifying the facts with you? Great....send my your policy information. I'll contact your insurance company and tell them how you just rear ended me and I have a bulging disc and need surgery from your negligence. They don't need to call you to verify any facts right?

El Cid

Sounds like a plan to me. BTW, if you only carry minimum liability, this means everything you own and have is on the line to settle a claim since a totaled car will vastly exceed most state minimums, not to mention the potential medcal and pain and suffering. If the insurance company is on the hook, they'll fight it with their attorneys. Just something to think about.

hyperion667

guess you're right......I don't know what to say

I did give a lot of info, when they asked for pictures, that's when I said no thanx........

life will go on