State farm question? - Page 2

dsmgixxer · 12-02-2008, 11:01 AM

i just started with state farm this year. my dad made an interesting point. they will pretty much not break even.

if i pay my bike premium of $30/mnth = $360 per year.

they paid me $10,000 which would mean i would have to pay my prem with no claim for over 27 years.

$360 x 27 years = $9720

even with my other policies its hard for them to really make any money.

binx_19 · 12-02-2008, 11:02 AM

Quote:

Originally Posted by dsmgixxer

i just started with state farm this year. my dad made an interesting point. they will pretty much not break even.

if i pay my bike premium of $30/mnth = $360 per year.

they paid me $10,000 which would mean i would have to pay my prem with no claim for over 27 years.

$360 x 27 years = $9720

even with my other policies its hard for them to really make any money.

do you account for the fact that your premium will go up as a result of your accident?

stealthy1 · 12-02-2008, 11:05 AM

You are also not taking into account that they got paid something for your trashed bike by someone....

RayOSV · 12-02-2008, 11:11 AM

Insurance companies are in the business of making money. They may not make money from each customer, but over their entire client base they better make a profit. Every time they renew a policy or take on a new one, it's a gamble for them. Are they in the gambling business? No. That's why they use premium adjustments. A higher premium serves two purposes. First they collect a little more money. Second it reminds you to be more careful.

The big gamble for the mutual insurance companies like State Farm is homeowners insurance. A big storm, hurricane, or earthquake can cost them billions overnight.

dsmgixxer · 12-02-2008, 11:18 AM

Quote:

Originally Posted by stealthy1

You are also not taking into account that they got paid something for your trashed bike by someone....

true

so deduct about $3k

so far my premiums havent gone up they actually went down but again i havent reached my term date which is in april.

i guess when thinking about it i dont really see a reason to stay if im only looking to higher premiums and possibly being dropped.

if i can get a lower rate or about the same rate from nationwide and they know about my claim then why not switch?

binx_19 · 12-02-2008, 11:28 AM

save some money for april, also State Farm is kinda like a savings account, you put enough money in and you get money, before i moved i was getting a check every year from them.

brent98rt · 12-02-2008, 11:51 AM

Quote:

Originally Posted by dsmgixxer

tried calling them they are only licensed in AZ no other states

AH sorry I didn't know that.. was worth try though ^^

RayOSV · 12-02-2008, 12:37 PM

Quote:

Originally Posted by dsmgixxer

...so far my premiums havent gone up they actually went down but again i havent reached my term date which is in april.

i guess when thinking about it i dont really see a reason to stay if im only looking to higher premiums and possibly being dropped.

if i can get a lower rate or about the same rate from nationwide and they know about my claim then why not switch?

The true value of an insurance company is how well they pay claims not how well they collect premiums.

If you want to know what your rates will do in April, call your agent. He/she can find out.

Napalm · 12-02-2008, 01:28 PM

You might try Country Mutual Insurance Co. that's who I have my bikes and truck insured through. By far the best deal on motorcycle insurance that I've come across.

(Last I checked State Farm was about 4 years ago and they wouldn't cover me even though I had cars and one 500cc motorcycle with them for about 6 years with no claims. As far as I'm concerned State Farm isn't worth the time it takes to call them.)

MINI NSX · 12-02-2008, 03:46 PM

Quote:

Originally Posted by RayOSV

Just make sure you disclose all claims, tickets, etc. with a new company. If you don't, they'll find out later and give you a very unpleasant surprise.

Again, depends on the state. Many years ago Nationwide canceled me and when I went to the State Farm agent (who I knew) and I told him that Nationwide had canceled me he said that in Ohio he legally couldn't ask me if I'd been canceled!

RayOSV · 12-02-2008, 09:12 PM

Quote:

Originally Posted by MINI NSX

Again, depends on the state. Many years ago Nationwide canceled me and when I went to the State Farm agent (who I knew) and I told him that Nationwide had canceled me he said that in Ohio he legally couldn't ask me if I'd been canceled!

Yes, you can't be asked if you've been canceled, but they can inquire about your record going back a few years. If you're less than truthful, they'll find out and either "adjust" your rate or cancel you worse case.

fishnride · 12-02-2008, 09:47 PM

I have State Farm for my house, Tundra XSP, Scion tC, 2 2005 CBR 600RR bikes, and I had my '03 Scout 185 Sportfish insured too.

I have insured the bikes the same as the cars - which is basically the coverage required for a leased car. I don't remember the specifics, but it's like 100/300 liability, etc.

My bike was purchased used in August 06, and stolen in Jan 07. When it was recovered, State Farm paid over $3k for repairs without complaint. I haven 't been dropped yet . . .

BTW - the bikes are ridden by me and my wife. No points on our licenses, and no infractions for over5 yrs. THe premium for both bikes is 70/month.

r64l · 12-03-2008, 01:20 AM

I had State Farm for YEEAAARRRRSSSSS and never filed a claim. Then I sold my truck to buy a vette. Called them to change it over and they said "sorry, we will not insure a corvette as an "only" vehicle". Those douch bags! They dropped me and I will never go back!. I have Progressive on my bike and it's strange how they quoted me my rates. When I called them direct they quoted me around $1300.00 for F.C.. I then called my insurance company USAA and they quoted me high as well, (no tiks, no accidents in over 20 years) BUT... they said we "underwrite" for Progressive and then quoted me $660.00 a year full coverage. WTF??? so thats who I use Progressive, only I didn't go F.C.. I went Lia w/ uninsured/under insured and pay 27.00 a month. (cheep cheep). O.K. O.K. I know, if I drop it or it's stolen, my bad, I'm at the loss, I'm dumb trying to save a little chump change 'cause if either happens it'll add up big time. But it's paid for, kinda a little "luxury" item/toy at this time in my life but I guess I'm just a gambler.(Not a good one, look at my casino cash, but none the less, a gambler!)