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State Farm Didn't Incrase My Rates!!!

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  • chloe0724
    started a topic State Farm Didn't Incrase My Rates!!!

    State Farm Didn't Incrase My Rates!!!

    I just got my new policy information in the mail yesterday and they didn't increase anything!! I was very worried about this because they had stopped auto debiting my payments. I did get a bill for the full 6 months instead of monthly like I had been previiously. I am so happy!!!!!!!

  • chloe0724
    replied
    Thanks, so as long as I don't have any accidents, I'm good.

    I hope everyone can join me in keeping their fingers crossed!!

    Leave a comment:


  • nchpycampr
    replied
    I work in a State Farm agency. It will vary by state, but I can speak for State Farm in NC. Credit is not used in scoring for existing customers but is used for new business quotes. For new business, normally a bankruptcy will cause you to be in the highest rate plan if physical damage coverage is offered at all. For existing customers, your score will decline and rate increase for claims & loss history and poor driving record.

    Leave a comment:


  • chloe0724
    replied
    Thanks What Money, I live in VA and it looks like that's why I didn't have my rates increased.

    Leave a comment:


  • WhatMoney
    replied
    Below is a listing of each state's credit scoring laws as of November 2007.

    (Note Michigan Court of Appeals has recently struck down insurance company credit scoring. The insurance companies will likely appeal to the Michigan Supreme Court before a final ruling.)

    http://www.insure.com/articles/carin...ring-laws.html

    The only state which completely disallows insurance credit scoring is Hawaii.

    Leave a comment:


  • Cali
    replied
    My insurance wasn't stopped or increased. But I did have to start mailing in payments.
    Last edited by Cali; 09-23-2008, 08:37 AM.

    Leave a comment:


  • WoodSprite
    replied
    Originally posted by Flamingo View Post
    Momof5....does New York allow credit scoring/profiling? If it does allow it, there is not too much you can do. That is a big jump but it all depends on how much they raised their usual and customary annual rates for everyone in the area you reside. Secondly, if NY does not allow credit scoring/profiling, and you are not comfortable with the explanation they gave you and feel it may be due to your bankruptcy filing, call your Insurance Commissioner's office and advise them and have the matter investigated. If NY does not allow credit scoring/profiling, of course your insurance company is not going to tell you it is due to your credit scores but would get away with trying to say it was due to something else. If you feel the jump was too big for a usual annual increase and your state does not allow credit scoring/profiling, by all means have the matter investigated.
    Hi, Flamingo, Mom -

    I spent a ridiculous chunk of this morning first waiting on hold, then trying to find someone at the NY Insurance Commissioner's office who even knew what I was talking about. While I was waiting, I found a 6-year-old document online which seemed to indicate that NY only allows credit scoring/profiling when one is applying for a NEW policy. When the person came back on the line, I asked her about that, reading it directly from their web site, and she said she had absolutely no idea and couldn't find anybody who did. Very helpful. I couldn't spend any more time on it today, but I'll keep hunting.

    You would think this would be a simple question to answer, wouldn't you?

    Leave a comment:


  • Flamingo
    replied
    Originally posted by momof5 View Post
    I have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate). $208 for 6 months and now its $281! Quite a jump.

    They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
    My Dad has State Farm and his rate is the same as it was a year ago so I know that is not true.



    I have been with them for 20 years! 1 claim in all those years!

    I should also add that the updated bill came about 2 weeks AFTER my discharge. I had already received a bill. The 2nd one said to disregard any previous bills.
    Momof5....does New York allow credit scoring/profiling? If it does allow it, there is not too much you can do. That is a big jump but it all depends on how much they raised their usual and customary annual rates for everyone in the area you reside. Secondly, if NY does not allow credit scoring/profiling, and you are not comfortable with the explanation they gave you and feel it may be due to your bankruptcy filing, call your Insurance Commissioner's office and advise them and have the matter investigated. If NY does not allow credit scoring/profiling, of course your insurance company is not going to tell you it is due to your credit scores but would get away with trying to say it was due to something else. If you feel the jump was too big for a usual annual increase and your state does not allow credit scoring/profiling, by all means have the matter investigated.

    Leave a comment:


  • WoodSprite
    replied
    Originally posted by momof5 View Post
    I have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate)... They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
    Thanks for the bad news, Mom. Man, that's quite a jump! I've been with State Farm for 24 years, too, and I've been trying to brace myself for bad news, since I saw an article over the weekend reporting that 48 insurance companies are asking the NY State Insurance Department for rate hikes averaging seven percent. Argh.

    Leave a comment:


  • momof5
    replied
    I have state farm and I am in NY. They have raised my rates 2 times in the past month. (received 2 different bills with 2 different amounts showing updated rate). $208 for 6 months and now its $281! Quite a jump.

    They claim it wasnt do to credit profiling but that its 'just an increase' due to various reasons that all customers got.
    My Dad has State Farm and his rate is the same as it was a year ago so I know that is not true.



    I have been with them for 20 years! 1 claim in all those years!

    I should also add that the updated bill came about 2 weeks AFTER my discharge. I had already received a bill. The 2nd one said to disregard any previous bills.
    Last edited by momof5; 09-22-2008, 07:44 AM.

    Leave a comment:


  • Flamingo
    replied
    Originally posted by WhatMoney View Post
    I think the common term used is insurance "credit scoring" - many google hits with that one.

    Here's a Consumer Reports article that includes a mention of the few states that have some kind of law restricting credit scoring:

    http://editorial.autos.msn.com/artic...umentid=435604
    You got it - it was referred to as credit profiling in articles here in our state when it was eliminated this past January. Same thing, just different term. It just profiles those having bad credit or in BK as being in a class that would have more accidents or report more claims than someone who has good credit. If your state allows this practice, it's time to contact your representatives and take action to get it removed.

    We have had our insurance company since 1984. The only times our rates rose were when we added on varoius newer cars or added on one or more of our 4 children. Our rates also have not risen due to the BK we filed in 2002 due to our long term association with them and our good driving record; however, if prior to this time we switched companies or they dropped us for any reason, and we applied to another company, credit scoring/profiling would have gotten us. That is why it is always best to try to stay with your same company during a BK if at all possible if you have a good record with them and not switch to try to get lower rates. However, they can just pull your credit reports prior to renewal and review your record and raise your rates if credit scoring/profiling is allowed in your state and your BK is now sitting on your credit reports and was not there during the previous renewal period.

    Leave a comment:


  • WhatMoney
    replied
    I think the common term used is insurance "credit scoring" - many google hits with that one.

    Here's a Consumer Reports article that includes a mention of the few states that have some kind of law restricting credit scoring:

    http://editorial.autos.msn.com/artic...umentid=435604

    Leave a comment:


  • Stilltheone
    replied
    Originally posted by chloe0724 View Post
    They said it's standard practice whenever you have a BK.
    We have been with State Farm for forever. My husband even has a 20+ year discount with them.(had life insurance taken out on him when he was 4)

    Nothing has changed with us and State Farm. We still have automatic payments deducted every month from our checking account and they haven't said "boo" to us.

    In fact, we got our "6 month renewal" notice for both vehicles in the mail the other day....and they both went down! We only pay $108/mo for an '03 Escalade, '98 Camaro and homeowners insurance.

    Good luck to you!

    Leave a comment:


  • Flamingo
    replied
    Originally posted by WoodSprite View Post
    This is great to know, Flamingo - thanks. I'm having trouble finding anything about "credit profiling" in relation to auto insurance, though...is there another term for it? I'll keep digging for a list.
    Call your State Insurance Commissioner's office on Monday and ask for information relating to credit profiling by insurance companies for insurance purposes in your state. You'll have all you need to know, including whether or not your state allows the practice.

    Leave a comment:


  • magyar123
    replied
    Call up the NY State insurance commissioner's office.

    Leave a comment:

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