My 80-year old Mom is suffering sticker shock for her Auto Insurance

[wehotex]

She currently has State Farm. A few months ago, we met with her local agent who suggested that I should add my name to the policy (I am 59 years old), which I did. This lowered it, albeit temporarily. She just received yet another increase this month! She is accident-free and drives only in the city. She got her hopes up when a 77-year old neighbor advised her to try another local agency, who told her that they could not give her a lower rate. We are wondering if it could be because she co-signed for my nephew’s delinquent student loan? If that is true, would too many new quote attempts work against her? Like a credit ding? The last place suggested to her to put me as another driver for the car. It is difficult for a widow on a single income.

 

[marindependent]

What state in your mother's auto insurance policy in?

Why did the State Farm agent suggest that you "should add my name to the policy "? What was the reasoning?

drives only in the city

What city?

How much is the increase?

 

[adjusterjack]

What is her credit score?

If she is in a state that allows credit scores to be used for auto rates, that could be a factor.

She can also try State Farm's Drive Safe and Save program where her driving is electronically monitored.

My State Farm premiums have stayed stable for the past year and a half. I'm 77.

She can shop around and see if thare are any companies or agents that can lower her rates.

 

[fed up]

She is 80 years old. See if State Farm has a discount for passing an approved defensive driving class. They are usually on weekends in my area. Also look at what other policies she has with SF to take advantage of any multi-policy discounts.

 

[adjusterjack]

See if State Farm has a discount for passing an approved defensive driving class.

They do.

I take the online class sponsored by the AARP. It's good for 3 years and costs $27 for members, $31 for non-members. Takes about 4 hours on the computer. You can pause and take breaks if you need to.

 

[SF_Anon]

She currently has State Farm. A few months ago, we met with her local agent who suggested that I should add my name to the policy (I am 59 years old), which I did. This lowered it, albeit temporarily. She just received yet another increase this month! She is accident-free and drives only in the city. She got her hopes up when a 77-year old neighbor advised her to try another local agency, who told her that they could not give her a lower rate. We are wondering if it could be because she co-signed for my nephew’s delinquent student loan? If that is true, would too many new quote attempts work against her? Like a credit ding? The last place suggested to her to put me as another driver for the car. It is difficult for a widow on a single income.

When you get the chance, check your declarations pages and see who is listed as the primary driver. If I had to guess, I'd say that the agent made you the primary driver when he added you to the policy, and the software reallocated your mother as the primary driver upon policy renewal. The SF software will generally rate for the highest risk in the 'household' (note - household is defined at the agency level, not corporate) - the oldest driver is generally considered the highest risk.

Now, the question is - do you and your mother live at the same address? Do you have an insurable interest in the vehicle? If the answers to one or both of those questions is 'no', then the agent knowingly (or unknowingly, 95% of SF agents are dumb as a box of rocks) committed insurance fraud. Insurance fraud isn't worth reducing your monthly rate, especially when it comes time to file a claim.

An agent that will lie for you will also lie TO you. At the very least, I'd advise finding another agent. Possibly another company. Good luck!

 

[DonP]

I’ve been with State Farm 38 yrs .My driving record is perfect . I got all discounts from 9 yr accident free to multi car to homeowners . My premiums have rose over 60% the last 2 plus yrs . I have 2 cars with American family and they’ve been stable the last 3 yrs .State farm doesn’t want your business anymore .

 

[wehotex]

What state in your mother's auto insurance policy in?

Why did the State Farm agent suggest that you "should add my name to the policy "? What was the reasoning?


What city?

How much is the increase?

I don’t have any idea why he suggested it- I assumed that it was my younger age?

Corpus Christi, Tex

Why did the State Farm agent suggest that you "should add my name to the policy "? What was the reasoning?

I don’t know.

How much is the increase?[/QUOTE]

When you get the chance, check your declarations pages and see who is listed as the primary driver. If I had to guess, I'd say that the agent made you the primary driver when he added you to the policy, and the software reallocated your mother as the primary driver upon policy renewal. The SF software will generally rate for the highest risk in the 'household' (note - household is defined at the agency level, not corporate) - the oldest driver is generally considered the highest risk.

Now, the question is - do you and your mother live at the same address? Do you have an insurable interest in the vehicle? If the answers to one or both of those questions is 'no', then the agent knowingly (or unknowingly, 95% of SF agents are dumb as a box of rocks) committed insurance fraud. Insurance fraud isn't worth reducing your monthly rate, especially when it comes time to file a claim.

An agent that will lie for you will also lie TO you. At the very least, I'd advise finding another agent. Possibly another company. Good luck!

Funny that you say that. I mentioned that I was visiting from Houston.

When you get the chance, check your declarations pages and see who is listed as the primary driver. If I had to guess, I'd say that the agent made you the primary driver when he added you to the policy, and the software reallocated your mother as the primary driver upon policy renewal. The SF software will generally rate for the highest risk in the 'household' (note - household is defined at the agency level, not corporate) - the oldest driver is generally considered the highest risk.

Now, the question is - do you and your mother live at the same address? Do you have an insurable interest in the vehicle? If the answers to one or both of those questions is 'no', then the agent knowingly (or unknowingly, 95% of SF agents are dumb as a box of rocks) committed insurance fraud. Insurance fraud isn't worth reducing your monthly rate, especially when it comes time to file a claim.

An agent that will lie for you will also lie TO you. At the very least, I'd advise finding another agent. Possibly another company. Good luck!

I am listed as the PRIMARY DRIVER in the premium before Renewal and AFTER renewal. She told me that she was paying $130/mo and is now increasing to $168/mo. She drives a 2023 Cadillac SUV and drives ONLY in the city. (Corpus Christi, Tex).
The agent knew that I was visiting from Houston because I told him so. I also told him that I visit a lot- true statement.
She is hesitant to apply at another agency because she thinks that too many Equifax credit inquiries will affect her chances at getting a better rate. Her 80-year old friend’s is $221/mo! It sucks getting old.

 

[wehotex]

I don’t have any idea why he suggested it- I assumed that it was my younger age?

Corpus Christi, Tex

Why did the State Farm agent suggest that you "should add my name to the policy "? What was the reasoning?

I don’t know.

How much is the increase?

Funny that you say that. I mentioned that I was visiting from Houston.


I am listed as the PRIMARY DRIVER in the premium before Renewal and AFTER renewal. She told me that she was paying $130/mo and is now increasing to $168/mo. She drives a 2023 Cadillac SUV and drives ONLY in the city. (Corpus Christi, Tex).
The agent knew that I was visiting from Houston because I told him so. I also told him that I visit a lot- true statement.
She is hesitant to apply at another agency because she thinks that too many Equifax credit inquiries will affect her chances at getting a better rate. Her 80-year old friend’s is $221/mo! It sucks getting old.[/QUOTE]


DonP: I have 2 cars with American family and they’ve been stable the last 3 yrs .State farm doesn’t want your business anymore .

So do you still have those 2 cars with State Farm or switched to the new carrier?

 

[NY independent]

Getting multiple insurance quotes will not impact your credit score. They are considered "soft hits" and reportedly, soft hits do not impact your credit score. In NY, very few carriers will write an 80 year old. If she called me tomorrow for a quote, I'd advise her to stay with SF. The delinquent student loan probably had an impact on her credit score so that might be another reason why her premiums went up.