This is an account of my car insurance experience. By sharing what I went through, I hope you will be able to protect your family, save money, and make well-informed decisions about auto insurance.
I had been a State Farm customer for thirty-three years. State Farm was the choice of my parents and grandparents. When I received my driver’s license, my parents added me to their coverage. I got my own policy with State Farm after graduating from college. I believed my insurance to be the best available. I assumed that I would receive preferential treatment. I was gullible.
The cost of my insurance got higher every year. I have never been in an accident, have no penalties or points on my license, and have never filed a claim in 33 years. I was an ideal client. Other than comfort of mind, I never asked for anything in exchange for paying my premium.
Over the past few years, I gradually lost faith in State Farm. I witnessed firsthand how they were handling their clients as a car accident attorney. I witnessed a supposedly “premium” business treat its clients like numbers. Nearly all of my clients who filed a claim for their injuries against State Farm were dissatisfied. I am not referring to a small sample size either. I see similar claims every day because State Farm is a major auto insurance provider. The number of times I had to inform clients that State Farm was not treating them fairly is uncountable. Additionally, the majority of these individuals were elderly. For years, if not decades, they used State Farm. Like me, they believed State Farm was on their side. But it didn’t really matter.
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 and the fact that they were no longer the same business, I thought they were deceiving people. The baby boomer generation trusted State Farm because they grew up with them. However, just because my parents and grandparents used State Farm didn’t mean I had to do the same.
I made the decision to compare auto insurance rates. That I did is a relief. It made me more aware of the state of the auto insurance market and how insurance companies rely on consumers to not shop around. This is my account of why I switched from State Farm to Geico for my auto insurance and how, with the same coverage, I was able to save more than $2,000 annually!
Examples of What I See State Farm Doing
In short, State Farm has been making lowball offers and only making payments after being sued. They run your claim via a computer, and they will provide whatever the machine recommends. I come across offers with absurd amounts like $3,905.21. It’s 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. A pure example of low emotional intelligence.
In the event that you file an uninsured motorist claim under your State Farm policy, they will compel their clients to undergo an independent medical examination (IME) or an examination under oath (EUO). An IME occurs when you are compelled to see a doctor of their choosing for an examination. A lawyer will examine you for hours during an EUO, which is essentially a deposition. This is a requirement of your insurance policy, and they have the right to make you do it. However, this is a rather aggressive action, and other insurance companies don’t handle their own customers in this manner. It’s a perfect illustration of why State Farm views its customers as numbers. They instantly go into defense mode instead of offering their customer the benefit of the doubt. Rather than providing for their clients, it appears that they are searching for ways to avoid paying claims.
Additionally, State Farm frequently files individual lawsuits on what is known as a subrogation claim. It’s a filthy little secret. When an insurance company “steps into your shoes” and pursues a claim without your consent, it’s known as a subrogation claim. Here’s how it functions. You are hurt in a collision. The bodily injury coverage of the at-fault driver is $25,000. You have uninsured motorist coverage of $100,000. You get the whole $125,000 in insurance money when your lawsuit is settled. In order to recoup the $100,000 they paid you, State Farm will next file a personal lawsuit against the at-fault driver. I’ve frequently witnessed it occur a lot. Even though they now typically settle for less than the full amount, they are still pursuing a large number of people covertly and recovering the money they gave out. Didn’t know about that clever move, did you?
How I Purchased My Auto Insurance Policy
It was considerably simpler than I had anticipated to purchase auto insurance. Since Progressive and Geico are reputable businesses and I have generally had positive experiences with both during my personal injury claims, I already knew that I wanted to compare them.
All I needed to do was visit their websites, fill out demographic forms, and submit details on my car. After completing the initial questions, I was presented with a menu that let me select the types of coverage and the desired quantities.
However, I wasn’t prepared for the menu’s abundance. I had to take a moment to make sure I knew what each kind of coverage meant and if I needed it. I had forgotten about all the bells and whistles because it had been so long since I had modified my coverage with State Farm. In the end, I was able to match everything by consulting my State Farm policy.
With Geico I Saved More Than $2,000 Annually for the Same Coverage!
In our home, my wife and I own two cars. We don’t have any accidents, tickets, or claims. For the insurance, we paid State Farm $3,150 every six months for a total of $6,300 annually. We simply wrote the checks because we didn’t know any better.
When I received Geico’s quote, I was startled. For the same coverage, it was $2,200 less per year! The only modification was that in order for Geico to provide us with a driving score, we had to be tracked on their mobile app. To save that much money, I made the decision to not give a damn about being tracked.
Which Coverage I Have:
The law mandates some form of coverage. However, this is a list of what I have on mine:
- Property Damage
- Rental
- Comprehensive
- Collision
- Bodily Injury
- Uninsured Motorist
The Coverage I Didn’t Purchase
I concluded that a few of the items were superfluous. I didn’t require the roadside assistance perk because my auto provider already offers it. Additionally, I turned down Med Pay because I already had health insurance and thought having both would be redundant.
The Agent at State Farm Insurance Refused to Cancel My Policy
This circumstance was frustrating. The person at my agent’s office seemed unconcerned when I told her that I wanted to cancel my insurance because I had switched to Geico. There was no attempt to match or even lower my rates.
However, she stated that before my policy could be cancelled, she wanted documentation proving I had Geico insurance. She requested a copy of the Dec page by email. I replied with a brief email expressing my desire to terminate the policy. I assumed she was in need of something written. In response, she said that until they received the Dec page from Geico, they would not terminate the policy.
Naturally, the Dec page contained the price I paid, and State Farm would be able to see what Geico was charging until I went through and removed it. However, I sent it over because I didn’t care enough to do the extra effort. Only then did State Farm cancel the policy.
What Kind of Auto Insurance Would I Suggest?
The main issues are having more than the mandatory $25,000 of bodily injury, then uninsured drivers, and rental. You are taking a chance if you don’t have a lot of all three and you get into an accident. For uninsured motorist coverage, I advise a minimum of $25,000/$50,000. How much you spend on each depends on your assets and budget.
Regarding property damage, I also observe a great deal of uncertainty. In an accident, property damage compensates for the harm caused by your carelessness. The damage to other cars is usually always covered by this policy. I don’t believe anyone needs more than $100,000 worth of property damage. Generally speaking, $50,000 is sufficient.
How to Obtain Quality Insurance at a Lower Cost:
“What good is insurance if it won’t pay when you need it?” I used to ask myself this. Although I still have this belief, it is no longer as significant. There aren’t many great insurance companies. I have worked with every insurance provider out there. I’ve dealt with thousands of claims. Out of all of them, USAA was the only one that I ever observed make a higher payment to safeguard their customers. I like USAA. I wish all insurance providers were more like them. I never have complaints about USAA from my clients. Unfortunately, only members of the military and their families are eligible.
I’ve had a lot of good experiences with Geico and Progressive. They are generally decent, though not flawless. Mid-tier is Allstate. All of the low-cost insurance providers are worthless. It should come as no surprise.
My greatest recommendation is to look for auto insurance every two to three years. Verify the company and the coverage you are receiving if the insurance quote seems too good to be true. Saving money doesn’t need you to reduce your coverage; all you have to do is compare rates.
I hope that by sharing my story, you and your family will be able to save money and possibly even increase your insurance coverage.
