This is my own account of my experience purchasing auto insurance. By sharing my experience, I hope you will be able to protect your family, save money, and make wise decisions regarding auto insurance.
I had spent 33 years as a State Farm customer. Both my grandparents and parents had State Farm. When I was old enough to get a driver’s license, my parents added me to their policy. After graduating from college, I purchased my own State Farm coverage. I believed I had the best insurance available. I believed that I would be treated differently. I was a fool.
The cost of my insurance got higher every year. I have no citations or points on my license, have never been in an accident, and have never filed a claim in thirty-three years. As a customer, I was ideal. I never requested anything other than peace of mind in exchange for paying my premium.
Over the past few years, State Farm gradually lost my trust. As a lawyer for car accidents, I witnessed personally how they handled clients. And, I did not like it. I witnessed a purported “premium” business handle its clients like statistics. Nearly all of my customers who were covered by State Farm and filed claims for their injuries expressed frustration. I also don’t mean a small sample size. Since State Farm is a major provider of auto insurance, I see these claims on a daily basis. The number of times I had to inform folks that State Farm was not treating them fairly is beyond me. The majority of these individuals were also older. They owned State Farm for many years, if not decades. Like me, they believed that State Farm was on their side. It really didn’t matter, though.
I was upset when I watched State Farm advertising with the phrase “Like a Good Neighbor” since I knew it wasn’t accurate. Based on the goodwill they had cultivated, I believed that they were deceiving people and that they were no longer the same business. Because they had grown up with State Farm, the baby boomer generation trusted them. But I didn’t have to follow my parents’ and grandparents’ lead just because they used State Farm.
I made the decision to compare auto insurance quotes. I am happy and relieved that I did. It made me more aware of the state of the auto insurance market and how the insurance companies rely on consumers not doing their homework. This is my story of why I moved from State Farm to Geico for my auto insurance, and how I was able to save more than $2,000 a year for the exact same coverage!
Examples of State Farm’s Improper Behavior
To put it plainly, State Farm has been making lowball offers and only making payments when compelled by legal action. They use a computer to evaluate your claim, and they will make any recommendations the computer makes. Offers with absurd amounts, like $3,805.21, are what I see. It is puzzling how their computer software generates these figures and why they don’t round them off. Their lack of compassion about how the recipient of these strange proposals feel is really frustrating. Reinforcing their low emotional intelligence.
Next, if you file an uninsured motorist claim under your State Farm policy, they will compel their clients to undergo an examination under oath (EUO) or an independent medical examination (IME). An IME occurs when a doctor of their choosing requires you to undergo an examination. In essence, an EUO is a deposition in which a lawyer interrogates you for several hours. Your insurance company is legally allowed to demand that you do this as part of your contract. However, it is a really aggressive action, and other businesses just don’t handle their own insureds in this manner. It’s a perfect illustration of why State Farm views its customers like numbers. Instead of offering their insured the benefit of the doubt, they go into defensive mode right away. It appears that they are more interested in finding ways to avoid paying claims than in providing for the people who have bought insurance with them.
Additionally, State Farm frequently brings personal lawsuits against individuals under what’s known as a subrogation claim. This tiny secret is filthy. When an insurance company “steps into your shoes” and pursues a claim without your permission, it’s known as a subrogation claim. It operates as follows. You sustain injuries in an accident. The at-fault driver’s bodily injury coverage is $25,000. You have $100,000 in coverage for uninsured drivers. You receive the full $125,000 insurance payout when your lawsuit is settled. After that, State Farm will bring a personal lawsuit against the negligent motorist to recoup the $100,000 they gave you. I witness it frequently. Even though they typically settle for less than the full amount, they are still pursuing a large number of people in secret and recouping the money they gave out. Didn’t know about that clever move, did you?
How I Looked for Auto Insurance
I was surprised at how simple it was to find auto insurance. Since Progressive and Geico are reliable businesses and I have generally had positive experiences with them during my personal injury claims, I already knew that I wanted to compare them.
All I needed to do was visit their websites, supply details on my car, and respond to demographic questions. After completing the initial questions, I was taken to a menu that offered me choices for both the types of coverage and the desired amounts.
However, the menu offered more choices than I anticipated. I had to take a moment to confirm that I understood the meaning of each sort of coverage and whether I actually required it. I hadn’t changed my coverage with State Farm in such a long time that I had forgotten all the details. In the end, everything matched up when I consulted my State Farm policy.
For the same coverage, I saved more than $2,000 annually with Geico!
We have two cars in our home, my wife and I. There are no accidents, tickets, or claims for either of us. We paid State Farm $6,300 annually, or $3,150 every six months, for the policies. Simply put, we wrote the checks without knowing any better.
I was taken aback upon receiving Geico’s quote. The annual cost was $2,200 cheaper for the same coverage! The only modification was that we had to agree to be tracked via their mobile app. I made the decision that if I could save that much money, I didn’t care about being tracked.
What Insurance I Have:
Certain coverage is mandated by law. Here’s a rundown of what I have, though:
- Property Damage
- Rental
- Comprehensive
- Collision
- Bodily Injury
- Uninsured Motorist
What I Didn’t Purchase in Coverage
Some of the additions weren’t necessary, I concluded. I already have roadside assistance from the dealership where I bought my car, so I didn’t need it as an insurance perk. In addition, I refused Med Pay because I already had health insurance and thought it was unnecessary to have both.
My policy would not be cancelled by my State Farm insurance agent
This circumstance was frustrating. When I called my agent’s office and explained that I wanted to cancel my insurance because I had switched to Geico, the agent seemed indifferent. No attempt to lower or even match my rates was made. She didn’t even ask me why. For someone who was paying $6300 a year with their agency, I expected to be treated better.
But before she could terminate my policy, she insisted that I provide documentation that I was covered by Geico. I received an email from her requesting a copy of the Dec page. I replied with a straightforward email expressing my desire to terminate the policy. She must have needed something written, I reasoned. In response, she said that they wouldn’t terminate the coverage until they got the Dec page from Geico.
Naturally, State Farm would be able to see what Geico was charging unless I went through and redacted the Dec page, which contained the price I paid. However, I turned it over because I wasn’t interested in doing further work. Only then did State Farm terminate the policy.
What Do I Suggest for Auto Insurance Coverage?
Uninsured drivers, bodily injury, and rentals are the main issues. You are taking a chance if you are in an accident and you don’t have all three. You are already required by Colorado law to carry a minimum of $25,000 for bodily injury. I suggest a minimum of $25,000 for uninsured motorist as well. The extent to which you go beyond each is determined by your assets and budget.
There seems to be a lot of misunderstanding around property damage. Property damage pays for the damage your carelessness causes in an accident. The majority of the time, this coverage is utilized to cover damage to other cars. I don’t think anyone needs to carry property damage over $100,000. $50,000 is usually more than enough.
How to Affordably Obtain High-Quality Insurance:
I used to ask myself, “What good is insurance if it won’t pay when you need it?” Though it’s not as significant these days, I still hold this belief. Great providers are hard to find these days. I have worked with all of the insurance companies. Thousands of claims have come through my office. Out of all of them, USAA was the only one that I ever saw paying extra to safeguard its insured. I really like USAA. I wish they were the standard for all insurance companies. I never hear complaints from my customers regarding USAA. Regretfully, only military personnel and their families are eligible, therefore not everyone is qualified.
With Progressive and Geico, I’ve had generally good experiences. They are typically reasonable. Allstate can be considered a mid-tier provider. All of the inexpensive insurance providers are total junk. You shouldn’t be surprised by that.
The best advice I can give you is to look around and compare auto insurance providers about every two to three years. If an insurance quote seems too good to be true, confirm the company and the coverage you are receiving. All you have to do to save money is compare rates; you don’t have to reduce your coverage.
I’m hoping that my experience may help you and your family to make financial savings and possibly even expand your insurance coverage.