State Farm Had a 6 Increase on Auto of 18%

sirherbie

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In 30 yrs I've seen over 3-5% per yr max and now they went up 18% in the last 6 months. Agent told me they were getting tons of calls.Any state farm agents in Georgia now why they had such a large jump?
 
General rate increase? This is common if insurance companies are losing money. If you have not had a claim or ticket, then the company has likely paid out on more claims in the past 1-5 yrs.

You can likely find it cheaper----if you are willing to change companies every single renewal. Over a couple years average, you will probably pay the same with Company A as Company B as company C
 
If agents are not properly writing the risks in a particular area, rates will be adjusted to accommodate for that. For example, there are some markets that are very competitive. Some agents (not just State Farm) use tactics such as giving low mileage discounts (when not truly warranted) in order to get the business. They "undercut" other agencies from the same company (State Farm, Allstate, Farmers, etc...) by screwing around with the rate. Or they give discounts that the customer may not qualify for. The customer may get the discount for a while, but it may be removed when the company finds out.

There are lots of ways that agents can "skew" auto rates - this is horrible business practice, and almost always, it hurts the company and ultimately, the customer in the form of rate hikes.

I have no idea if this is the case in your area, nor does that mean that State Farm agents in your area are doing that... But it's a possibility. No way to really know.

In any case, it's amazing what some agents and brokers will do to get business. If I can't get it honestly and write it properly, I rather not write the business.
 
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