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(Chicago Trib)   State Farm cuts auto insurance by $2.2 billion since no one is driving   (chicagotribune.com) divider line
    More: Spiffy, United States, State Farm, Insurance, auto insurance, Last month, auto rates, regulatory approval, foreseeable future  
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1021 clicks; posted to Business » on 19 May 2020 at 4:30 PM (2 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2020-05-19 4:34:20 PM  
I got a letter from USAA saying they were cutting mine by a lot so that was nice of them since I am only driving half as much. But there seem to still be plenty of accidents since people think they can drive as fast as they want now.
 
2020-05-19 4:41:57 PM  
Allstate's giving me a 15% refund for driving 90% less than I normally do.
 
2020-05-19 4:47:26 PM  

groppet: I got a letter from USAA saying they were cutting mine by a lot so that was nice of them since I am only driving half as much. But there seem to still be plenty of accidents since people think they can drive as fast as they want now.


As fast as they want and ignoring stop signs and red lights. In other words, people are driving as they normally would.
 
2020-05-19 4:49:23 PM  
I got this right after paying for my last renewal, so it'll be a credit in 6 months.
 
2020-05-19 4:55:42 PM  
Pretty sure all the auto insurance companies have cut rates to varying degrees. Farmers knocked 25% off ours and my daughter said Progressive lowered hers as well. Nice enough of them I guess, but it will go back up soon, no doubt.
 
2020-05-19 4:55:48 PM  
State Farm hasn't refunded me any money.  Cheap bastardz!
 
2020-05-19 4:59:55 PM  
Safeco has refunded me some.  Can't remember specifics.
 
2020-05-19 5:15:54 PM  
Progressive gave me a 30% rate discount, which was nice of them. I am still driving as much as before, insurance agencies were deemed essential, especially those in the commercial auto realm.

Being that I have access to information that happens regularly, that most folk do not, I was interested to see how my renewal was going to go. In March, Progressive filled a rate change with the Tx Dept of Insurance, a reduction for personal auto policies, but an increase to in commercial auto (not a surprise to me for commercial). So my renewal came around and my premium went up. So I decided to call and see what BS line I would be given. And its the same line that is always given out, claims and statewide price increase. So I sent them the blurb that I received, from Progressive, through my company and asked, why was I seeing an increase, while a lot of other folks were seeing a decrease. Mind you, in my 30 year driving history, i have zero at fault accidents, no comp or collision claims and no moving violations.

It boils down to I don't have good credit and they take advantage of that fact. Correlating credit to driving responsibility is as stupid as the myth, for decades, that red or yellow cars got the higher rates, because they speed more and get more tickets. But by making me pay 3x more for insurance than I should be, isn't going to help me (or anyone in similar situations) make their situations better.


Much like the fed handing out trillions to businesses that are not hurting and/or seen record profits for the last few decades, but telling the plebes that $1,200 should last you 3 months, insurance companies aren't trying to help you. The reality is that they are trying to keep the departments of insurance for fining the ever loving fark out of them for keeping unearned premiums. and possibly kicking them out of the state as an insurer (see State Farm and Allstate from several years ago, along the gulf coast and property policies, although they willingly left the marketplace, rather than be kicked out for not paying property losses due to hurricane damage).

Also, since its approaching, check your renters and homeowners policies for hurricane "windstorm" deductibles. Thats a new thing for this year that most companies are doing.
 
2020-05-19 5:52:05 PM  
OK, my story. Travelers. Check for $10. In the mail. As in "check I wiped down and would have to leave the house and cash at a bank".

Has anyone else experienced this?

For the love of Ethel, just donate it to charity!
 
2020-05-19 5:55:53 PM  

groppet: I got a letter from USAA saying they were cutting mine by a lot so that was nice of them since I am only driving half as much. But there seem to still be plenty of accidents since people think they can drive as fast as they want now.


some assclown rear-ended me (in his company work truck, no less) while screwing around on his cell phone.  took it to my friends shop and they don't have any more space to store customer vehicles, and are severely overworked at the moment.

all of this with less people on the road is rather telling, imo

/hurt like a son of a biatch and send the most ambulance-chasey lawyer after this bafoon.  my new truck still had paper plates
//no mercy for anyone dicking about on their phones behind the wheel
 
2020-05-19 6:02:32 PM  
OMG!

Will this mean the end to every other commercial on TV being an insurance ad?
 
2020-05-19 6:06:23 PM  

brizzle365: Correlating credit to driving responsibility is as stupid


It's not. There is a huge body of evidence (reams and reams of actuarial statistics) that people who are shiatbags with their credit are also shiatbag drivers. This is a fact.
 
2020-05-19 6:07:52 PM  

SquonkBot: check I wiped down and would have to leave the house and cash at a bank


1. No human touched that check. It was printed by a computer and stuffed into an envelope by a machine.
2. Deposit it remotely with your cell phone.
 
2020-05-19 6:19:06 PM  
Anyone have a theory what all these mustache-twisting capitalists are up to issuing refunds? Must be some nefarious plot behind it to drive up inequality and make the poor poorer right?
 
2020-05-19 6:59:55 PM  
Since I already paid off my car insurance for the time being (my bills for it start in July), I got a refund check from my insurance company. A whopping $22... for a $1100+ premium on a car that's 16 years old (thanks to an accident I had back in 2013. I think my premium will start to go down again in 2021).

That will get me a lunch or two, or a tank of gas, or a couple of my generic prescriptions, but not much else.
 
2020-05-19 7:05:47 PM  

saphrophyte: Anyone have a theory what all these mustache-twisting capitalists are up to issuing refunds? Must be some nefarious plot behind it to drive up inequality and make the poor poorer right?


YouTuber Steve Lehto has a theory as to why. Basically, insurance companies knew that they had to lower rates, or state insurance commissions would have forced them, to as their risk is reduced due to fewer people driving. State insurance commissions told insurance companies that they couldn't keep the windfall and to give some of it back to the policyholders.

Insurance Co's Giving Money Back?! Ep. 6.407
Youtube Zo1W-mHnwXk
 
2020-05-19 7:10:37 PM  

SquonkBot: OK, my story. Travelers. Check for $10. In the mail. As in "check I wiped down and would have to leave the house and cash at a bank".

Has anyone else experienced this?

For the love of Ethel, just donate it to charity!


I don't think I've cashed a check at a bank since around 2006.  I used to have to scan it on the computer, but now they just let me snap it on my cell phone.  The only time I've been into a bank was to deposit $4k after selling my motorcycle.  

groppet: I got a letter from USAA saying they were cutting mine by a lot so that was nice of them since I am only driving half as much. But there seem to still be plenty of accidents since people think they can drive as fast as they want now.


I suspect there's a lot of overlap between "Don't care enough about others to stay the fark at home" and "Don't care enough about others to drive safely."  With some overlap from a third, unrelated bubble "Poor as fark, will be fired if they're 5-10 minutes late, and deemed essential."
 
2020-05-19 7:11:02 PM  

PunkTiger: Since I already paid off my car insurance for the time being (my bills for it start in July), I got a refund check from my insurance company. A whopping $22... for a $1100+ premium on a car that's 16 years old (thanks to an accident I had back in 2013. I think my premium will start to go down again in 2021).

That will get me a lunch or two, or a tank of gas, or a couple of my generic prescriptions, but not much else.


You're getting dinged on an accident from seven years ago? Time to shop around.
 
2020-05-19 7:43:14 PM  

dustman81: PunkTiger: Since I already paid off my car insurance for the time being (my bills for it start in July), I got a refund check from my insurance company. A whopping $22... for a $1100+ premium on a car that's 16 years old (thanks to an accident I had back in 2013. I think my premium will start to go down again in 2021).

That will get me a lunch or two, or a tank of gas, or a couple of my generic prescriptions, but not much else.

You're getting dinged on an accident from seven years ago? Time to shop around.


It's a MA statute for their Safe Driver program. Get into an accident and you don't get a discount on auto insurance for 7 years, after which, you start getting the discount again that increases for every year you don't have an accident (up to 5 years, I believe).

At least, that's what I was told back in the 1980s when I first got a car and insurance, and it's held true since then (granted, I've only had three accidents since I started driving back in 1983, the previous one I had was in 1994).

But, yeah, I think it's time I shopped around. I'm not impressed with my current insurance company.
 
2020-05-19 7:51:30 PM  

dustman81: saphrophyte: Anyone have a theory what all these mustache-twisting capitalists are up to issuing refunds? Must be some nefarious plot behind it to drive up inequality and make the poor poorer right?

YouTuber Steve Lehto has a theory as to why. Basically, insurance companies knew that they had to lower rates, or state insurance commissions would have forced them, to as their risk is reduced due to fewer people driving. State insurance commissions told insurance companies that they couldn't keep the windfall and to give some of it back to the policyholders.

[Youtube-video https://www.youtube.com/embed/Zo1W-mHn​wXk]


I haven't researched car insurance and it probably varies state for state, but for my health insurance, there is a percentage cap on how much they can use for administrative costs, and that has resulted in an occasional small refund.
 
2020-05-19 7:57:04 PM  

SquonkBot: OK, my story. Travelers. Check for $10. In the mail. As in "check I wiped down and would have to leave the house and cash at a bank".

Has anyone else experienced this?

For the love of Ethel, just donate it to charity!


Fark user imageView Full Size
 
2020-05-19 8:38:33 PM  
Insurance from an insurance company that " doesn't sell insurance anymore " ?  I'll pass .
 
2020-05-19 8:51:14 PM  
My apartment insurance just went up. I wonder if that's because they assume I'm at home more.
 
2020-05-19 10:23:50 PM  

PunkTiger: dustman81: PunkTiger: Since I already paid off my car insurance for the time being (my bills for it start in July), I got a refund check from my insurance company. A whopping $22... for a $1100+ premium on a car that's 16 years old (thanks to an accident I had back in 2013. I think my premium will start to go down again in 2021).

That will get me a lunch or two, or a tank of gas, or a couple of my generic prescriptions, but not much else.

You're getting dinged on an accident from seven years ago? Time to shop around.

It's a MA statute for their Safe Driver program. Get into an accident and you don't get a discount on auto insurance for 7 years, after which, you start getting the discount again that increases for every year you don't have an accident (up to 5 years, I believe).

At least, that's what I was told back in the 1980s when I first got a car and insurance, and it's held true since then (granted, I've only had three accidents since I started driving back in 1983, the previous one I had was in 1994).

But, yeah, I think it's time I shopped around. I'm not impressed with my current insurance company.


Most companies don't use accidents older than 5 years. And a lot go even less than that. I'd definitely shop around.
 
2020-05-19 11:31:36 PM  
No one is driving? Someone should tell all the people I see on the road every day.
 
2020-05-20 12:22:48 AM  

chevydeuce: Pretty sure all the auto insurance companies have cut rates to varying degrees. Farmers knocked 25% off ours and my daughter said Progressive lowered hers as well. Nice enough of them I guess, but it will go back up soon, no doubt.


The risk will increase as we go back to the roads so yes, auto insurance will increase.
 
2020-05-20 3:22:13 AM  
California's insurance commissioner ordered the insurance companies to refund or reduce rates for everyone. They listened. Didn't have to ask for it.

The big insurers are likely trying to avoid that in other states. If they give back 5% now, they might not be ordered to give 15% back later.
 
2020-05-20 5:20:14 AM  
....Since we reordered the primary drivers on our cars, we got a huge drop from State Farm this month when they finally applied the 'Nobody's Driving' discount.  Went from $375/mo down to $101 this month.  Ain't gonna last forever, but enjoying it while it does.

/Agent says it'll probably stabilize at about $250/275
 
2020-05-20 8:51:28 AM  

PunkTiger: Since I already paid off my car insurance for the time being (my bills for it start in July), I got a refund check from my insurance company. A whopping $22... for a $1100+ premium on a car that's 16 years old (thanks to an accident I had back in 2013. I think my premium will start to go down again in 2021).

That will get me a lunch or two, or a tank of gas, or a couple of my generic prescriptions, but not much else.


Perhaps you're a driver with attributes that lead the insurer to believe you're prone to causing accidents, damaging both your own vehicle, and vehicles of others. A lot of what you're paying is for the liability portion of insurance - bodily injury and property damage. Hurting other people and damaging their stuff.
 
2020-05-20 12:09:19 PM  

12349876: dustman81: saphrophyte: Anyone have a theory what all these mustache-twisting capitalists are up to issuing refunds? Must be some nefarious plot behind it to drive up inequality and make the poor poorer right?

YouTuber Steve Lehto has a theory as to why. Basically, insurance companies knew that they had to lower rates, or state insurance commissions would have forced them, to as their risk is reduced due to fewer people driving. State insurance commissions told insurance companies that they couldn't keep the windfall and to give some of it back to the policyholders.

[Youtube-video https://www.youtube.com/embed/Zo1W-mHn​wXk]

I haven't researched car insurance and it probably varies state for state, but for my health insurance, there is a percentage cap on how much they can use for administrative costs, and that has resulted in an occasional small refund.


Only if you are insured with a "mutual" insurance company. Mutual meaning, that each policy holder has a stake in the business, which means if profits rise above expenses, then policy owners receive a dividend.

Trick being, is that there is no cap on expenses towards administrative costs, as long as what they present to the department of insurance, seems reasonable, so it is totally subjective. Which is why the largest mutual companies don't pay dividends to policy holders.

One of the few big ones, is USAA. Which, if you are able to become a member, stay with them. They have some of the best rates and best service in the industry.

And is the only major insurance company that makes 3rd party Cat adjusters piss test before deploying to a catastrophe.
 
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