- 1 What are the characteristics of State Farm auto insurance?
- 2 Will My Car Insurance Rates Go Up for a Hit and Run Accident?
- 3 Insurers raise rates after crashes вЂ” even if driver not to blame, study finds
- 4 Will my car insurance rates automatically go up after a car accident?
- 5 4 Tips for Negotiating the Best State Farm Settlement after an Auto Accident
What are the characteristics of State Farm auto insurance?
State FarmStatehis company is financially strong and generally receives positives ratings and reviews from independent entities.
Some consider them more expensive, but they have the finances and reputation to pay their claim
Other than Liability, what covers does State Farm offer?
They offer many different types of auto insurance options for consumers. Bodily injury and property damage liability are available options for State Farm customers.
- Personal injury protection will cover your expenses and lost wages that occur as a result of an auto accident
- Medical payment coverage takes care of hospital and funeral expenses that result from injury or death in an auto accident
- Collision coverage handles damage that occurs to your vehicle as a result of an auto accident
- Comprehensive coverage handles damages that occur as a result of anything other than a collision with a vehicle or object. This includes fire damage, hitting a deer and acts of Mother Nature.
- Uninsured and underinsured motorist coverage handles medical expenses that occur as a result of an accident caused by an uninsured driver or a driver with insufficient coverage
Rental reimbursement and emergency road service are additional options available to State Farm customers. These are not necessary but can raise your premium for the convenience of the service. With these
With these services, you can be reimbursed for renting a car if you have an open claim and your vehicle is totaled.
You also can be reimbursed for towing expenses if your car breaks down.
Compare Quotes From Top Companies and Save
Can I get a discount on my auto insurance through State Farm?
State Farm offers several auto insurance discounts to qualifying drivers.
You can receive a discount for having multiple vehicles on one policy or having other insurance products through State Farm.
There discounts for excellent driving, having no accidents on your record and for safety features on your vehicle, or being a student.
More information on these discounts can be found on the State Farm website.
You can speak with an agent for State Farm to find out which discounts you may qualify for.
State Farm takes several factors into effect when calculating the rate for your auto insurance premium. They consider the number of vehicles on your policy, and how much it would cost to replace each vehicle.
State Farm gives you the opportunity to decide your deductible. If you have a lower deductible, your premium will be more.
If you don’t mind having a higher deductible, then you can save money on your auto insurance premium.
Your driving history is a large part of what determines how much your auto insurance premium will be.
Accidents, auto insurance claims and speeding tickets can all increase your premium.
State Farm does not indicate how far they will go back to look for these incidents. Insurance companies will generally keep all tickets and claims on your record for 3 to 5 years.
Risk is the ultimate factor that determines your auto insurance premium. There are statistics that claim certain drivers are safer or more prone to accidents.
You may receive a higher or lower insurance premium based on your age, sex or marital status.
State Farm will also look into the area in which you live as well as how much you drive.
If you drive a long distance to go to work, then the risk is higher for you to be involved in an accident. This will likely raise your insurance premium.If you live in a high crime area, the risk for vandalism and
If you live in a high crime area, the risk for vandalism and auto theft is much greater. This also has the potential to raise your auto insurance premium.
Your credit history is also another factor that State Farm may consider when setting your auto insurance rate. Various factors in your credit can be predictive of excellent or poor driving performance.
Various factors in your credit can be predictive of excellent or poor driving performance.
What payment options are available through State Farm?
State Farm auto insurance policies last for 6 months. You may pay your premium in a lump sum payment every 6 months when the policy renews.
If you choose this option, you will avoid any additional fee and service charges.
Other options available for your convenience include monthly and quarterly installments.
These installment payments can be deducted from your bank account automatically for your convenience.
There are also different billing options including paperless statements.
Will My Car Insurance Rates Go Up for a Hit and Run Accident?
Hit and run accidents are serious events that should not be taken lightly. If you cause a hit and run accident, you've technically committed a crime. It's possible that you'll be able to evade responsibility for the incident. However, it's also possible that state prosecutors would find witnesses to testify against you should the matter ever end up in court. As difficult as it may be to do so, you should surrender to the police.
Once you're in custody, the police will attempt to contact the owner of the other vehicle involved in the accident. If the accident was relatively minor and caused no bodily injury to anyone involved, it's likely that you'll be allowed to settle the matter through your respective insurance companies. In this case, you may not be charged with a crime. Alternatively, you could attempt to find the owner of the other car and settle the matter without involving the police at all.
In either case, your insurance rates are likely to increase substantially. Since hit and run offenses are deemed to be more "serious9quot; than speeding tickets or run-of-the-mill traffic accidents, drivers who cause them tend to be penalized accordingly. Depending upon your previous driving record and your demographic profile, a hit and run accident for which you're at fault may cause your insurance premiums to increase by 25 to 75 percent. If you have other serious violations or vehicular crimes on your driving record, your insurance company may choose to void your policy after learning of your offense. This may bump you into your state's "risk pool" and raise the cost of insurance coverage even further.
If you're the victim of a hit and run accident, your insurance company may still choose to increase your premiums. While this doesn't seem fair, it's a direct consequence of the method that most insurance companies use to calculate risk. Even if you weren't at fault for the incident, you nevertheless placed your vehicle in a "risky9quot; position and caused damage to it as a result. Your claims adjuster might argue that you could have prevented the incident by parking your car in a garage or other lightly-trafficked area.
If your insurance company raises your premiums after a hit and run accident for which you were not at fault, consider switching to another provider. Since you weren't legally responsible for the incident, some providers may choose not to initiate your coverage at an artificially-high rate.
Insurers raise rates after crashes вЂ” even if driver not to blame, study finds
Drivers who get rear-ended in Chicago and other major cities are also likely to get hit with rate increases from their insurance companies — even when they are not at fault.
"Insurance companies are penalizing people who have done nothing wrong," said Doug Heller, who conducted the research for the federation, a Washington-based nonprofit consumer watchdog. "If you're unlucky enough to have been rear-ended while at a stoplight, that's not a justification for jacking up your rate. It's not fair."
The study examined rates from five insurance companies in 10 metro areas, with results varying by insurer, location and the income level of the driver. Across the country, lower-income drivers are more likely to be penalized by rate increases, the study showed.
Progressive was the most aggressive at penalizing drivers involved in collisions that weren't their fault, raising rates by an average of 16.6 percent, followed closely by Geico and Farmers, which bumped up rates by 14.1 percent and 11.1 percent, respectively.
"State Farm never penalized a customer because they had been involved in an accident, if the accident was not their fault," Heller said. "Progressive raised rates by $300 a year, or about 17 percent, in most states that allowed companies to punish innocent drivers hit by another driver."
Steve Weisbart, chief economist for the institute, questioned the methodology of the study but didn't necessarily dispute the findings.
"The premium is based on anticipated claims," Weisbart said. "If the company chooses to surcharge you after you've had a not-at-fault accident, it is convinced that you are likelier to have an at-fault accident in the future."
Where you live also affects how large a rate increase you'll get socked with after a crash that's not your fault, with the most severe penalties for drivers in Queens, N.Y.; Kansas City, Mo.; Chicago; and Baltimore, Heller said. The average premium hike for Chicago drivers was $98 per year, according to the study.
Drivers in two of the markets — Los Angeles and Oklahoma City, Okla. — didn't see any rate increases because they are prohibited by state law, Heller said.
The practice of raising rates on drivers who aren't at fault discourages them from filing claims, Heller said, calling it an "abuse of the insurance product" that customers bought in good faith.
"Most people understand that if they cause an accident, their insurance is going up," he said. "If they're an innocent victim of some reckless driver, there shouldn't be a penalty for that. It's not fair."
Will my car insurance rates automatically go up after a car accident?
The disruption in your life after a car accident does not always end with the auto body repair process. You could possibly continue to pay for this unfortunate circumstance for several years due to an increase in your premiums, or even get dropped by your existing car insurance company the next time you need to renew your policy.
One question many people have after an accident is what the long-term impact on car insurance rates will be if they file a claim. Most motorists believe that any claim, no matter the amount, will lead to an increased car insurance rate. In some cases this is actually not true. Some drivers are so worried about the repercussions of an accident, that they don’t file a claim or even notify their car insurance company of the incident.
I’m one of those people. This is my truck, and it has been like this for three years.
You would think that with all the body shops I work with, and our relationships with insurance companies that I would have my truck fixed by now. I’m kind of hoping that one our auto body shops will take pity on me and just fix it up, but that day hasn’t come. The truck is drivable and I am the one that caused the damage, (I backed into a huge yellow pole), so I have been reluctant to file a claim.
I have spoken to body shops and I have spoken to Insurance people and I have been told conflicting information. One shop told me that any repairs under $1,500 usually will not cause an issue with car insurance rates. One body shop owner told me that his insurance company dropped him after he hit a deer and had to file a second claim in the same year.
I called my insurance agent (a State Farm agent) and they told me $750 is their magic number. I also had an insurance exec tell me that anything you file will affect your rates. We are, after all, merely math equations performed by actuaries at Insurance companies, so adding in variables will alter that “risk9rdquo; equation.
So how do you make sense of all of this? I will attempt to here in this article.
“Filing a car insurance claim doesn’t always translate to paying more for car insurance.”
This is a quote from e-surance on their own website. In fact there are 5 areas that factor into whether your insurance rates will rise or not.
1. Accident severity- IE. Cost to the insurer
When an insurance company says accident severity, they mean the dollar value of a claim, and how “serious9rdquo; it was. Did you hit a car, do damage to property, or did you just back into a pole like I did.
Supposedly, if you have a really long driving history with out a single blemish, your rates might not go up if it is a minor incident (see number one).
Safe drivers save car insurers a lot of of money every year. A rise in rates comes when an insurance company actuary labels a driver to be higher risk. Sometimes a driver with decades of safe driving history doesn’t necessarily become high risk after a little fender bender.
Your history with the insurance company is also a factor. Customer acquisition is a big expense for insurance companies (just look at how many car insurance commercials there are out there), and car insurance companies appreciate consumers who’ve stayed with them. If you’ve been with your insurer for some time with a fairly clean record, you may not see any increase after a minor incident. The key phrase here is “may not”.
3. Who is at fault in an accident
If you are the victim of a car accident- (you were hit by someone else), your insurer may not raise your rate. But again, the other factors will come to play, such as other claims on your account, and your driving record. If you have several tickets, and were in an accident, and you drive a lot of miles each year, your risk factor could go up, bringing your rates up with it.
If you were caused the accident, you may see an increase in your premium. (See below to learn how this doesn’t apply in no-fault states.)
In that case, some driving incidences are bad news when it comes to determining fault. If you were driving recklessly, or texting, or were driving while impaired, you’ll probably see either a major increase in your rate or, possibly the cancellation of your policy.
As mentioned above, car insurance companies pay out on claims when their policyholder is determined to be at fault in the collision, however there are some “no-fault9rdquo; insurance states where this does not apply.
In no-fault states, your insurance company is almost guaranteed to have to pay some portion of a claim, no matter who’s to blame. That means it’s more likely that your insurance rate will go up after a claim, though the above factors will still apply a little bit in determining how much it goes up.
The 12 states that currently have or include a no-fault car insurance scenario are**:
Nine of these states are considered just “No-Fault9rdquo; and three are considered “Choice9rdquo; states. In a so-called “Choice9rdquo; state, drivers can choose a no-fault system policy or a policy based on traditional tort liability law. The tort policy used in “Choice9rdquo; states are the same as those used in states without no-fault laws and, therefore, the claims procedures are the same. A driver retains her right to sue, generally without any significant statutory limitations.
5. Your individual car insurance policy details
In today’s competitive car insurance world, many companies offer “accident forgiveness” for small insurance claims. Accident forgiveness often allows you to file one or more small claims without affecting your rates. The same will also go for glass claims. I had a windshield replaced without affecting my rates.
However, what accident forgiveness means for your policy depends on your provider and their standards, so carefully review your policy to learn exactly how your insurer will handle a small claim.
So that does not definitively answer the question simply because there are too many variables. So if a rate goes up, how much can it go up?
How insurance companies calculate policy increase amounts.
Every insurance company has its own method for determining when and how much to raise your premium following an accident in which you were at fault. Some will tack on as much as 40 percent to your base policy, increasing your payments significantly. Other insurance companies will use a complicated internal points system, grouping you in a pool with other higher-risk drivers. And if you cause additional accidents, you’ll be placed in a still higher-risk pool.
Many state insurance departments have also developed their own points formula, which create a standard rate structure for all policyholders within the state. But your insurance company will still ultimately decide how many points to add to your policy if you have an accident. And not all companies and states apply the formula in the same way. Points are gradually removed from your policy over a period of two to six years.
What if you bump into another driver in a parking lot? Should you and the other driver settle things between the two of you and leave your insurance companies out of it?
If you do decide to handle the matter privately, you’ll want to cover all your bases, this is extremely important and also slightly difficult to do, depending on the other person. It is advised to have the other driver sign a written agreement that absolves you from further liability. The agreement should also describe the accident and what both of you agree to do. If you fail to get something in writing, a dishonest driver could later claim that the accident was your fault, that you caused bodily injuries, and that you simply drove away from the scene without stopping. This is one reason why insurance companies want you to report all collisions, no matter how minor. Also if it isn’t too late, Take some photos on your camera phone at the scene or as soon as you get home.
If it was a minor accident, and you covered all your bases as shown above, you might want to really consider paying for the repair out of pocket.
3. Insurance surcharge schedule
Since car insurance laws vary state to state, car insurance agencies file a schedule in each state which outlays the procedure and amounts for increasing an insurance policy. I found a really god article that goes into a lot of detail about the rates schedules here : http://www.insure.com/car-insurance/after-accident-rate-increase.html
Some takeaways from that article worth noting are that while a car insurance policy may look like a bargain initially, a high surcharge level could send your rate through the roof after an accident. So be careful of deeply discounted policies without finding out what happens in the event of an accident.
Surcharges vary by state and insurance company, and some penalize you for moving violations while others focus only on “chargeable accidents” (meaning at-fault accidents for which your insurance company must pay out more than $500 or $750 per accident after your deductible has been applied). So keep in mind that not only car accidents, but driving violations can also spike your rate at renewal time.
If you’re shopping for a car insurance policy, it is recommended that you ask an insurance company for a copy of its surcharge schedule (sometimes called an “insurance point plan”) before you buy. Also, ask this question: “If I have an accident within the next 12 months, what would my end result premium be without discounts?”
Finally, decide for yourself if the increase would still be less than the out of pocket expense. In a way you would be “financing9rdquo; the repair that you might have normally paid out of pocket. If your car is severely damaged, you are probably going to have no choice but to get it fixed and deal with the insurance rate increase later.
So what about my dented truck fender?
I think I’m going to just let it be for now and once the truck is paid off, I’m going to get it fixed and pay out of pocket. That is of course unless one of my friend’s body shop’s are kind enough to take pity on me and fix it for me.
4 Tips for Negotiating the Best State Farm Settlement after an Auto Accident
If you have had a car accident in the recent past, then you will be keen to try and negotiate a State Farm settlement if these are your insurers. State Farm does not have the best reputation in the business, and there have been a few State Farm lawsuits by class action groups. Many people feel that the insurers were reluctant to pay out for insurance claims even if you have been paying insurance for many years. However, if your insurer is State Farms, then you don't have to worry that they are going to dismiss your claims out of hand. As with any other insurers, it will take a bit of pressure, and you will have to be properly prepared before you make your claim.
- Be Prepared - You can never be over-prepared when you are making a claim after an automobile accident. After all, if they did not ask you to make an effort, they would not be a profitable business. Read all of the policies that you hae from State Farm in order to work out exactly what you can and can't claim after a car accident.
- Gather Your Evidence - You will need to have documentation, not only of all the bills you have incurred during this process, but also any pieces of evidence such as witness statements about the accidents, police reports or evidence from the garage about the condition of your car. Include personal bills such as medical receipts, any medications that you need to pay for and other symptoms of the after-effects of the accident.
- Write a Letter - The best way of stating clearly to the insurers what amount you are claiming from them is to write out your claim in a letter. This letter should include full accounts of the accident, referencing to the documents, which you should enclose copies of, and finishing with a paragraph where you set out your claims as clearly as possible. You should make your claim as unambiguous as possible, to avoid conflicts with your insurers.
- Phone Your Insurers - About a week after the letter has been sent, follow up with a phone call to check that they have received the letter and it is being dealt with. This will make sure your insurers understand your interest in the matter, and demonstrate to them that you intend to follow it up closely. You should then phone every so often, in order to remind them of your claim, and to check that it is being processed.
As with any other big insurance company, you will always face resistance to your claims from the insurance brokers. To make the best out of your settlement, you must include claims for everything, down to car repairs and mortgage payments. Your insurance can debate these payments with you, but at least they will be aware of them. So long as you are persistant, you should experience no real objections.