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LindaKay75
March 19th, 2017, 02:16 AM
Hi, is there anyone on the forum that is in the car insurance business or even has a lot of knowledge about car insurance? For 60 years I have always had State Farm car insurance. Today I drive a 2005 Honda with 42K miles and I am 78 years old. I pay my premium every 6 months, last statement was $744. Yesterday I got my new statement and now it is $844. I got the old magnifier and read the fine print hoping to get a reason why it went up so much. Okay, this must be something new now. They have checked my credit report which is fine, but due to my son who is 53 now and lives in my house he does not have any credit so that made my premium go up $100 more for 6 months? My son does not own a car so he drives my car about once a month. I was told once before when the premium went up it was due to living in south Florida, no fault state, and being an elderly that causes more accidents. Well I resented that remark because due to my quick action I saved my life twice from a young girl texting and another time a girl on her cell phone. On my driver license it says 'safe driver'.
So please explain these ridiculous premiums. I'm paying almost $1,700 a year. I've gotten quotes from other companies and it wouldn't save me much to change.
What does a person do when you can't afford car insurance anymore. I'm not ready to give up all my independence but looks like I'm being forced into it. Maybe I should remove my son's name from the policy and just give him permission to drive my car. Is that the way to do it? Is that legal? My agent isn't much help in explaining. Sometimes I feel like State Farm wants to force me out due to my age. Could that be it? I just don't know.

Oh well, thanks for listening to my frustration tonight. Can't sleep for thinking about this. Has made my blood pressure higher. Since I've had one stroke I have to be careful and not get stressed out too much. If you know anything about car insurance or have had experience yourself please talk to me. When I'm stressed I don't think too clearly either. So I hope you can understand what I'm trying to say here. Once again, thanks for listening.

kaydee
March 19th, 2017, 02:36 AM
I'm sorry I can't help you with your question, but I am wondering whether you have taken advantage of the sizeable discount you can get from State Farm if you take the senior's driving ed course. Just a thought.

bubba
March 19th, 2017, 03:00 AM
Many years ago, we let our daughters boyfriend drive MM's car.....he had a diabetic blackout and totaled it with five people inside, one of which was my newborn grandson. Luckily, nobody was hurt or killed. We were told we could never allow him to drive any of our vehicles again and to always make sure if we lent it to someone to make sure they have insurance.

Fast forward 22 years to this past November. Keep in mind, if you don't have insurance, you don't drive our vehicles. We lent our truck to our daughter who is fully insured. She hit ice or wet pavement in a curve, spun out, damaged our truck and a jersey barrier/guard rail on the freeway. She calls her company to report it. They tell her since it was our vehicle, we have to report it to our company. We call and question this, and our company tells us, yes that is correct. We report to ours, pay the deductible (she will be paying it) and they pay for our repairs. Even though they go after her company to be reimbursed, our rates will go up for three years!!! It is nothing but a big, fat, racket. They get you coming and again as you're going.

LindaKay75
March 19th, 2017, 03:16 AM
Bubba, I totally agree with you when you say it is nothing but a big fat racket. I call it GREED. Every time I get my statement it has gone up a little or a lot and they always have a good answer to why. I'm too fragile anymore to challenge them so I just give in to them. But when I calm down I do need to talk to my agent. They never try to help me save any money or cut corners, like they just don't care. I'm beginning to hate this whole state of Florida. I'm being forced to learn how to speak Spanish in order to even communicate with human beings. Seems like they get all the breaks they need. Go figure! I just have a bad attitude right now. My cable went up $10, my phone up $10, my internet up $10, my medical premiums hit the roof. Thank God my social security is still coming in. It goes on and on. I know, I'm not in this alone. What has this world come to. I grew up in the best generation ever was. I will never see that again.

DeniseSm
March 19th, 2017, 07:21 AM
I routinely check my car insurance rates every year. As a senior I have always received the best quote through AARP. AARP in my state of Texas is using The Hartford insurance company that gets excellent reviews. It only cost $15 per year for a senior to join AARP and it is one of our best purchases.

While you have no control over accidents, that is why we call them accidents, you certainly have control over whom you lend your car to and whom else you list as a driver on your insurance policy. Just as one example, you could remove your son from the policy and since he only drives once a month, take half of the money you have saved from not having him on the policy and set your son up with a car service like Uber or Lyft, or you can probably rent a car for $35 a day. Peace of mind for you.

Snip Snip
March 19th, 2017, 10:17 AM
Also consider whether you still need full coverage on your car. Maybe things are different in Florida, but in Missouri, if you don't have your car financed, all you need in insurance is liability and uninsured driver's insurance.
It's taking a chance, of course, and I wouldn't advise this if you don't have enough in savings to replace the car or repair it, but if you do, it's an option.
And if you can tolerate the aggravation, you could do some shopping around. Insurance agents have been known to find "good customer" discounts if they are squeezed.

redcaboose1717
March 19th, 2017, 10:57 AM
We had State Farm for YEARS......and the price kept going up and up. I then started calling other insurance companies and found that Progressive was cheaper. Still, I think that $155.00 per month ( and yes the auto is new ....a year old ) is a little steep due to the fact that I don't drive the car much, DH is the driver. I honestly think that due to the fact that he is 68 yrs old is an issue.....Neither of us have had an accident EVER that has been our fault....Someone ran into me 28 yrs ago, and someone ran a red light ( during a police chase ) 35 yrs ago, ( way before I ever met DH ) ....and of course these accidents aren't on our record.
I think this credit rating business is garbage too, I mean you have to have insurance and to me ( our credit rating is great) a credit rating shouldn't play into auto insurance.......we live in Michigan have no-fault insurance and if you DON'T have insurance you are penalized for it if you get insurance again.
For a couple who has never been without insurance.....well, I think this is ridiculous in my opinion.

My suggestion is to call around to some insurance companies to see what they might offer you. None of these insurance companies give you anything nowadays for being loyal.......BTW......in 10 yrs the insurance has gone up $250. How does the insurance company explain that ? They say it's due to costs they can't control.......right.....

LynneLeavell
March 19th, 2017, 11:18 AM
Lindakay75, I know what you mean. We have had State Farm for years and my daughter has her own policy with State Farm as well. My husband bought a truck a couple of years ago and went to get insurance on it and it was going to be a little more than what we were paying on the three vehicles that we had insured in our name. My daughter rear ended someone a year or so before we got the truck and even though the policy was in her name and she claimed the accident on her insurance it affected our insurance rates because she lives with us. Needless to say my husband had a few words for the insurance agent and for our daughter. He keeps saying he is going to look other places but hasn't done it yet. I have thought about maybe raising our deductible on our vehicles but not sure if I want to. Good luck on your endeavors with Insurance.

TMP
March 19th, 2017, 12:08 PM
When the kids were teenagers and on our insurance we had a larger deductible and that made some difference. I don't know if you have things that you could do without or change that like car rental. I would ask my agent if there were places you could cut cost. We have been with USAA for 37 years and have our house, cars, personal property all with them. They give a discount for having more than one of their policies.

Granny Fran
March 19th, 2017, 12:10 PM
Maybe if the insurance companies didn't advertise so much on TV they could pass the savings on to the customers. Some of the ads are downright insulting. Also, all those cars that you see in the news that drive in flood areas....well someone has to pay for that foolishness. Just saying. I am with you on the frustration. We get a senior discount and also one for being retired. Check around some more. Your car is over 10 years old so you should be able to save more. Also, do not let your son drive your car without telling the insurance company. I think that could work against you in case there were an accident...no matter who hit who.

redcaboose1717
March 19th, 2017, 12:12 PM
I have a large deductible.....and the rates are still ridiculous. I thought about checking out some of these online insurance companies. I don't need a brick & mortar office due to the fact we haven't had to see an agent in years to claim anything. I do save a little money on having the home insurance and the auto insurance together .....but it isn't that much. We went down to one car years ago......as well.

violette123
March 19th, 2017, 12:17 PM
I live in Colorado, and my six month premium hit the roof in March. I have every Farmers' discount possible and my agent told me that the increase is nation wide because of "in-attentive drivers"---ie: cell phone users while driving.

mischiefkat
March 19th, 2017, 12:18 PM
Several years ago we had some ins issues also. The agent called us and suggested we come in and review our coverage. Bottom line is we only saved $50 or so, but we have what we NEED TO PROTECT US . Request a sit down with your agent for a full explanation of your coverage, and the laws involving issues such as "no fault", big surprise there. If your agent is reluctant to do so,maybe you need to check out other insures, but not on line. You don't have to buy ins from anyone just to sit down and talk to them about your circumstances. I live in S.E. Fla so I know the challenges, and your zip may play into it too. Good Luck Kathy

kaydee
March 19th, 2017, 02:33 PM
I found this article about credit scores and insurance rates. Wow! A poor credit rating can cost you more than an accident!

If your son has a poor credit rating, you might want to get him off your policy, but I'd be VERY CAREFUL about letting him drive. Be completely honest with the insurance companies, b/c if you aren't, they will use the tiniest little bit of deceit to deny any claim you have.

The other option would be to have your son pay the additional cost.

Anyhow, here is the link to the consumer reports article. Eye opening for sure!

http://www.consumerreports.org/cro/car-insurance/credit-scores-affect-auto-insurance-rates/index.htm

LindaKay75
March 19th, 2017, 02:43 PM
Thank you Kaydee for that consumer report. My son doesn't have ANY credit, bad or good. No charge cards, nothing. He let his job go due to back injury plus he sold his truck. He drives my car occasionally, not enough to be paying higher premium. Yes, since they found out he has no credit it went up $200 more a year. Now, when he did work he was making truck payments, etc. but had his own insurance. He never had any credit cards. He was in ER for back problem one time and he never paid that bill so that went to a collection agency, but gosh, that was 20 years ago. Would that still count against him? First of all, I had no idea they could check your credit without your permission but they can. What about your medical records, can they have access to that too without your permission. This should be against the law.

Cokie
March 19th, 2017, 02:47 PM
There are a lot of things you can look at that might affect the cost. It sounds like you are carrying full coverage on your car. With the age of your car, and assuming it is paid for, you might not need to do that. You don't say where you live, but that can also affect your rates, and what the required liability minimums are for your state. Liability coverage is required - what your company will pay to repair someone else's vehicle if you are at fault, and medical coverage will pay for any physical injuries. Collision coverage will pay to repair your vehicle if you are at fault, and comprehensive coverage will pay for things like broken glass or damage that is not from an accident (hail, etc.), and that coverage is much more expensive.

I agree with checking other insurance companies to compare. My dad says AARP has the best rates in his area for insurance. Good luck - insurance can be very confusing!

LindaKay75
March 19th, 2017, 02:51 PM
Jacqueline, I have a $1,000 deductible. I have only minimum coverage, what I could afford. I have check online and gotten several quotes, boy the questions they ask you, my gosh. I've never had any accidents, I'm 78 and been driving since I was 16. My home is paid for and I cannot afford home insurance. I had to drop Citizens thru my State Farm because their rates were so high due to hurricanes in FL. So I am w/out home insurance. My agent I had for years moved out of state and the manager's son replaced her. He is in his 20s and very green on how this insurance world works. He is my agent now and doesn't know how to help me. I've had sit down talk with him and every question I had he had to ask his dad. I don't need that. I know another agent in the office that has been there for a very long time and I may just talk to her. I don't like to show any disrespect toward the other agent.

LindaKay75
March 19th, 2017, 02:57 PM
Several years ago we had some ins issues also. The agent called us and suggested we come in and review our coverage. Bottom line is we only saved $50 or so, but we have what we NEED TO PROTECT US . Request a sit down with your agent for a full explanation of your coverage, and the laws involving issues such as "no fault", big surprise there. If your agent is reluctant to do so,maybe you need to check out other insures, but not on line. You don't have to buy ins from anyone just to sit down and talk to them about your circumstances. I live in S.E. Fla so I know the challenges, and your zip may play into it too. Good Luck Kathy
Kathy, thanks for your advice. Yes the zip code does play a big part in premiums. My agent did tell me I could drive maybe 50 miles or even less, out west of here and have cheaper insurance. Go figure. I just never understand this. Some towns have fewer accidents than other towns. What a mess. It's all BS to me. I almost need to hire a lawyer to sort this out. Since I've had State Farm since I was 16 and I have good standing with them, I hate to change company. Besides another company starts you off real good then next bill it's gone up. You can't win.

K. McEuen
March 19th, 2017, 03:05 PM
I am thinking that the no-fault insurance must be one thing that make your rates so high. Another is where you live, your zip code. I know in Texas when I lived there, that the more populated counties, like Dallas and Tarrant counties, had higher rates.

I have State Farm and have had them since I was 16. Right now, I pay about $145 a month, which ends up being close to what you pay, but I have full coverage on two Tundras and required coverage on a Honda CRV. I'm also grandfathered in on a $250 deductible. They don't even offer that anymore, but because that was what I started out with, they have always given it to me. I live in the most populated area of New Mexico too. I know that I get a discount for safe driving, combined policies (auto and home) and over 55. They have never said anything to me about credit rating.

I just think the biggest issue with your insurances rates is where you live.

Edited to add - check into the "low mileage discount" if you aren't already receiving it. If you drive your car less than 7500 miles per year (I think that is the number) you can get a break on rates. You might have to send them our mileage off the odometer every 6 months, but you do save.

bubba
March 19th, 2017, 03:15 PM
Now that I am awake, I remember when we took our grandson, Tyler, to get his first car. He wanted to do it all on his own and MM and I were just there for moral support. He negotiated a good price, had $4000 to put down and then called the insurance company. That poor boy.......his insurance payment is way more than his car payment is. In another year or so, he should be able to get a better rate.

His insurance is thru USAA. He had that car exactly a week and he was driving one night when a car with no headlights came at him. Yes, there was an accident and it totaled Tyler's car. He was so upset and did not drive for about a month. USAA was so nice about it. The first accident you are in with them does not count against you and the slate is as clean as if it never happened. He did get a new car a few months later (he likes this one better than the first) and all is well.

snippet
March 19th, 2017, 04:01 PM
Oh I can feel your frustration Linda. Every bill goes up and up and you get less and less.

I too have State Farm. When my agent retired, all his accounts were transferred to another agent who works in another town! I didn't realize it for a while, when this new guy's name was appearing on all my statements and such. I didn't get one letter or email about the transfer. I thought I'd keep they agent, since I NEVER see or hear from them anyways, but finally decided to switch agents to one whose office is very close to my house. I still don't correspond with him either.

I have two cars, mine and my 23yo son, on my insurance. I have a $250 deductible too. I'm paying $300 a month for my insurance. I assume the high cost is a multiple of things for me: young son, low deductible, living in San Antonio, and I have no credit. I don't own a credit card and am sure that is a factor.

You might try taking your son off your insurance. But sure that your insurance will cover those you give permission to drive. I'd also check into putting the insurance in his name and having you as an additional driver. That might help. But by all means, get a new agent. State Farm agents are everywhere, so you should be able to find one that is helpful in lowering your costs and still keep you covered for those awful accidents.

Stay strong and don't let them get to you!

K. McEuen
March 19th, 2017, 04:40 PM
Carol, your rates will drop some when you son hits 25 or gets married, whichever comes first.

snippet
March 19th, 2017, 05:11 PM
Carol, your rates will drop some when you son hits 25 or gets married, whichever comes first.I'm hoping so Karen. So either I get rid of my son, move, increase my deductible or get a credit card. I don't forsee any of that happening just to get a lower rate.

LindaKay75
March 19th, 2017, 06:23 PM
Snippet, that is very expensive. Mostly due to a young driver. My agent is a young man and he said his premium is $2500 a year. I had thought about putting my son on as primary driver but I'm afraid to do that. I may ask them to remove my son altogether since he drives occasionally and then maybe I'm allowed to give him permission to drive my car. I was told once that I cannot change agents. To tell you the truth I think they are just trying to get rid of me due to my age. I'll just have to go in office and talk to them.

bubba
March 19th, 2017, 07:22 PM
Linda, they cannot tell you that you can not change agents!!! They work for you and you can change agents if you want to. I had to deal with State Farm after being t-boned by a driver who was insured by them. I swore then I would never use their company for my personal use and I standby that to this day. They are very underhanded in the way they deal with people, and believe me, it's much worse when you are the injured party!!

Hulamoon
March 19th, 2017, 07:52 PM
We use Progressive, but there is a new rate with Island insurance and it's only $27 per month. They bombard you with commercials though.

https://www.islandinsurance.com/landing/golow/?gclid=CNbV5MrS49ICFQx_fgodPAIOnQ

Carlie Wolf
March 19th, 2017, 07:53 PM
I thought mine was high. I guess not. I drive less than 25 miles a month, don't have collision since it's a '97 and I have State Farm. My credit union sent a thing that I might be able to get lower rates but when I checked it out that was not the case. I have State Farm and I pay $79 a month that includes $10 month renters insurance. I phoned them anyway and complainted that I thought it was too high since I drive less than 25 miles a month and it's all within 5 miles of my house. They checked and said they couldn't get it lower. That was about 3 months ago. I did notice that last month it was about $5 lower though. I'll be 70 this year and I've considered whether it would just be cheaper to take a taxi for the few times (and it would), but I don't want to lose that independence either. Plus Carlie wouldn't like it, she lives for those few rides and loves sitting in the parking lot watching all the goings on.

redcaboose1717
March 19th, 2017, 08:37 PM
LindaKay75....if the hospital bill your son didn't pay is 20 yrs old.....it shouldn't count against him or you.
Maybe if he got a small credit card....and kept it current that might help the situation....but I don't know that for sure.
Usually everything is supposed to go off your credit rating every 7 yrs I thought....so maybe it might be wise to check to see what is really on your son's credit rating, due to the fact that it's causing your insurance to be so high. If the negative item is still there, write to the credit Bureau and send in a statement that the items should have been removed. My sister had this problem when she divorced her DH, 15 yrs later there was still a negative report of his from before they were married. IT was finally removed, and my sister was able to get the house she was purchasing.

LindaKay75
March 19th, 2017, 09:54 PM
Oh Carlie Wolfe, I feel for you too. We all are in the same boat when it comes to this car insurance. Some more than others. I should be a valuable customer to State Farm since I've been with them for 61 years but it seems to make no difference. At my age there is no need to change insurance company since they are all basically the same thing money wise. I might benefit by just taking my son off the policy, they have him as a designated driver. I'll talk with agent Tuesday, Monday is not good day to do anything. It's also where I live in south FL. My credit union made no difference either. My Honda is a 2005 with 42K miles, so that should tell you how much I drive. By the way, they don't take your word for it either, they do check your odometer.

LindaKay75
March 19th, 2017, 09:58 PM
We use Progressive, but there is a new rate with Island insurance and it's only $27 per month. They bombard you with commercials though.

https://www.islandinsurance.com/landing/golow/?gclid=CNbV5MrS49ICFQx_fgodPAIOnQ
I'm moving to Kaneohi where my aunt lives!! I can't imagine such a low monthly rate.

Carlie Wolf
March 20th, 2017, 12:15 AM
Linda I agree that it might be wise to take your son off the policy or ask him to pay the difference. Paying the difference would be fair to you I think.

Altairss
March 20th, 2017, 04:33 PM
Every time I turn around we are getting updates that hey we have upped your premium ( Statefarm) I went from about 200 to about 300 a month for four cars three drivers over a year and we all have clean records are cars are paid for expect one. Every time I make a change to get a better deal with them they turn around and raise the rates for twice what I was saving. needless to say we are now shopping around after 18 years with them. No loyalty at all for good customers your treated just about the same as their bad ones.

lilamath
March 20th, 2017, 11:00 PM
My husband used to sell insurance. He suggested that you drop your comprehensive. Your car is 12 years old so its worth isn't much. He doesn't think your agent is servicing you well. You drive a minimal amount so there could be savings there. We have changed insurance companies recently and have saved quite a bit. He said you can't drop your son as he's living in your home and can drive. I had a friend about your age and insurance kept going up. She changed as she thought she'd been with them so long that they took advantage. Don't know if it's true. You may want to check with a senior center and talk to others to see what they have done.

lilamath
March 20th, 2017, 11:08 PM
Oh NO, I meant to say COLLISION not comprehensive. You need to speak to an agent to make sure that's wise in the area where you live.

LindaKay75
March 21st, 2017, 12:44 PM
Linda I agree that it might be wise to take your son off the policy or ask him to pay the difference. Paying the difference would be fair to you I think.
Carlie Wolf, thank you but my son is unemployed right now due to back injury. He sold his truck and is living with me for now. So he is a designated driver on my policy. My premium went up because now they are checking credit reports. My son has no credit, he did have years ago and didn't pay hospital bill so don't know how far back they go on that.

LindaKay75
March 21st, 2017, 12:50 PM
My husband used to sell insurance. He suggested that you drop your comprehensive. Your car is 12 years old so its worth isn't much. He doesn't think your agent is servicing you well. You drive a minimal amount so there could be savings there. We have changed insurance companies recently and have saved quite a bit. He said you can't drop your son as he's living in your home and can drive. I had a friend about your age and insurance kept going up. She changed as she thought she'd been with them so long that they took advantage. Don't know if it's true. You may want to check with a senior center and talk to others to see what they have done.
Thank you for that suggestion. My policy shows a $1,000 Deductible Comprehensive at $17.24. So dropping that would not save me that much. You're right, I cannot drop my son since he lives in my home and drives my car. Most seniors I know don't have family members living with them so looks like I'm stuck with this. I see no way out. I've gotten quotes from other companies and they save me very little to change.

LindaKay75
March 21st, 2017, 12:55 PM
I'm sorry I can't help you with your question, but I am wondering whether you have taken advantage of the sizeable discount you can get from State Farm if you take the senior's driving ed course. Just a thought.
Hi Kaydee, my agent suggested I take the senior's driving course so I did call the place they were having the course. Would you believe at the same time I heard on the local news the place had bomb threats!!!! So I cancelled.
My brother took the course and said not to waste my time, it only saves you less than $20 for 3 years.

kaydee
March 21st, 2017, 01:43 PM
LindaKay, I'd look into it a little bit more. I have a friend who took it and she said the savings were substantial enough to make it worthwhile (though both she and her husband were qualifying for the dicount). Also, I'm pretty sure you can do the course online now.

Also, as far as the credit rating goes -- having no credit rating is probably in itself a factor that works against your son. By that I mean that the number crunchers at State Farm have probably factored "no credit rating" into their risk assessments. I'm not suggesting it's fair; I'm just saying that the insurance companies look purely at statistics when setting their rates, and that is probably something they are taking into consideration.

Also, those upset about the "greed" of insurance companies probably need to look at whether the insurance companies are actually increasing their profits as a result of these increases, or if the increases are the result of increased claims. I have no idea which is true. I can tell you though that I have noticed an increase in the number of rear-end collisions occurring. Just the other day a SEMI plowed into the back of a cab stopped at a light here in outstate Minnesota and killed two people. Now how the H did that happen? You know the driver of the semi (who wasn't hurt) was NOT looking at the road. Also, last summer my husband was sitting in traffic in Austin in a rental car and a teenager plowed into the back of his car pushing him into the car in front of him. Again, how do you MISS stopped cars? This is what the insurance companies are dealing with. And this is why we are paying increased rates. It stinks; and I see no end to it other than perhaps self-driving cars.

MSN
March 21st, 2017, 09:41 PM
[QUOTEMy brother took the course and said not to waste my time, it only saves you less than $20 for 3 years.[/QUOTE]
I have State Farm auto insurance and my savings from taking the safe driving course is 10%. Well worth the time and the few dollars it costs to take the course. I took the course in a classroom when I turned 55, and took the renewal course online. Both options were pretty good and a very good return on investment.