State Farm Fire & Casualty vs. State Farm Mutual
KH
renews in March, I'm being moved from State Farm Fire & Casualty to
State Farm Mutual. What is the difference between these companies?
I've gathered that State Farm Fire offers the preferred rates and Sate
Farm Mutual writes policies at non-preferred rates. Is that the only
difference - the rate structure?
I had one issue in 1998 - I scrapped a pole in a parking lot. Only
damage was to my car and it was filed with insurance. I believe the
damage was paid against my collosion coverage.
I had three issues in 2000 - an accident that was my fault; a speeding
ticket; and, I hit a dog. Both accidents were filed with State Farm.
The one that was my fault happened in a rental car. The rental agency
and the other party were paid against my collision coverage. The dog
damaged my car which was repaired under my comprehensive coverage.
Nothing in 2001.
In 2002 I had two issues - Early in the year, I backed out of my
driveway into my neighbor's car that was parked in the street. This
claim was paid out of my collison coverage. In the summer, I was
involved in an accident that totaled my car but it was not my fault.
The police report clearly faults the other party. Neither my
insurance nor I paid anything to the other party. As for me, I
couldn't come to an equitable agreement with the other insurance
company on the book value of my car. It ended up that my insurance
paid me and is subragating (sp?) with the other insurance company to
recover the amount paid to me.
During all that, I lost my accident free discount with State Farm, but
they continued my policy with no other noticable differences. After
my car was totaled in the summer, I bought a new 2002 car. I insured
that with State Farm and again, I don't have the accident free
discount, but there are no other noticable differences in my policy.
Now, I get a phone call that when my current policy comes up for
renewal in March, I'm being moved to non-preferred rates. It will be
approx. a $400 cost increase. I actually expected such a move in 2000
when I had the three incidents in the same year, but all that happened
then was that I lost my accident free discount. As for 2002, my
understanding was that the accident that wasn't my fault shouldn't
count against me. So, I'm preplexed as to why State Farm has decided
to move my policy now. My agent didn't even have an answer for that
question.
Again, is the only difference between State Farm Fire & Causalty and
State Farm Mutual the rate tables? I've been with State Farm for 8
years on my own policy - 16 years total if the 8 years I was under my
parents policy counts for anything. At this point, should I look at
dropping State Farm and getting coverage with another company? The
only quote I've got so far has been from Progressive and the rate they
quoted is comparable to the rate I'll be paying at State Farm in
March. How long do the accidents and speeding tickets count agaist me
at State Farm - 3 years, 5 years?
Thanks.
Randy Cindy Wright
different types of customers. They are known as preferred, standard and
non-standard. Which customers fit into which company varies by insurer.
The rates are higher in the non-standard company and coverage is usually
less. Again these varies by insurer. You need to ask your agent the
coverage differences - such areas as rental cars, trailers, other permissive
drivers etc. Another difference will be in the coverages or amount of
coverage offered; a non-standard company will not offer high limits and
extra coverages like towing.
You did the right thing in asking your agent - now you just want to ask more
specific questions. I doubt anyone in this group - unless they're employed
by State Farm - knows the differences between the companies.
Randy Wright, CPCU
"KH" <kkar...@onebox.com> wrote in message
news:52af7585.02112...@posting.google.com...
MMUR
State Farm .. State Farm Mutual is the preferred plan and State Farm
Fire and Casualty is the Standard plan.
There are 3 types of insurance companies: Preferred, Standard, and
non-standard.
State Farm, due to your driving record is moving you to their Standard
carrier. This will also increase your rates.
With State Farm this may cause your rates to be higher with them for 5
years.