State Farm in Florida [update: will not withdraw]

[NotDeadYet]

This reminds me that I meant to post about a letter I got from State Farm the other day. I still have my auto insurance with them, because so far nobody can beat their price. But the letter made me think maybe I ought to pay more just for the satisfaction of going elsewhere.
State Farm was never my home insurer. For more than a decade, I was with a company that left Florida, and I ended up with Citizens. Recently I was "taken out" of Citizens. So State Farm informs me that if I have auto insurance with them, which I do, and also either have Citizens or a company that took me out of Citizens, I am eligible for a discount on my auto insurance, but only if State Farm is the agent for the property insurance. As I read this, not only do they want to keep on writing auto insurance in Florida while leaving homeowners high and dry, they want to collect the commissions for that property insurance they are no longer offering. Am I missing something, or does this sound like double dipping, or maybe having your cake and eating it too would be more accurate?

 

[Lynnie]

This reminds me that I meant to post about a letter I got from State Farm the other day. I still have my auto insurance with them, because so far nobody can beat their price. But the letter made me think maybe I ought to pay more just for the satisfaction of going elsewhere.
State Farm was never my home insurer. For more than a decade, I was with a company that left Florida, and I ended up with Citizens. Recently I was "taken out" of Citizens. So State Farm informs me that if I have auto insurance with them, which I do, and also either have Citizens or a company that took me out of Citizens, I am eligible for a discount on my auto insurance, but only if State Farm is the agent for the property insurance. As I read this, not only do they want to keep on writing auto insurance in Florida while leaving homeowners high and dry, they want to collect the commissions for that property insurance they are no longer offering. Am I missing something, or does this sound like double dipping, or maybe having your cake and eating it too would be more accurate?

This is exactly what is so infuriating. The State of Florida allows the carriers to cherry pick the business!

If they pull out of home owners coverage, the state should tell them 'no more coverage for you in Florida!' If a property and casualty carrier wants to do business in FL, they write all lines across the state, period! But, you won't get anyway with the legislators on this one! I'm with you, I'd cancel the State Farm auto coverage, too. Is it a deep discount they are giving you? Dern them! And, dern the state for allowing this kind of business!

 

[SHELLY]

This reminds me that I meant to post about a letter I got from State Farm the other day. I still have my auto insurance with them, because so far nobody can beat their price. But the letter made me think maybe I ought to pay more just for the satisfaction of going elsewhere.
State Farm was never my home insurer. For more than a decade, I was with a company that left Florida, and I ended up with Citizens. Recently I was "taken out" of Citizens. So State Farm informs me that if I have auto insurance with them, which I do, and also either have Citizens or a company that took me out of Citizens, I am eligible for a discount on my auto insurance, but only if State Farm is the agent for the property insurance. As I read this, not only do they want to keep on writing auto insurance in Florida while leaving homeowners high and dry, they want to collect the commissions for that property insurance they are no longer offering. Am I missing something, or does this sound like double dipping, or maybe having your cake and eating it too would be more accurate?

You should go get a few quotes from different insurance agents for both homeowners and auto (some will write both and give you a discount too). Then you should match these with the price/service you receive from your State Farm agent. Then you should go with whoever gives you the best coverage/service for the best price--even if that happens to be State Farm (money is money afterall).

However, just for laughs, you should forward a copy of that letter to the Florida Insurance Commissioner with a copy to Gov Crist and let them know what you think. (Office of Insurance Regulation) Personally, I think that's a pretty ballsy move by the State Farm Agent to put such a thing in writing--maybe the Insurance Commissioner will feel the same.

 

[Em]

State Farm proposal - for Florida

OIR approves portions of State Farm proposal, rejects others

TALLAHASSEE, Fla. ? Aug. 7, 2009 ? State regulators on Thursday approved a slate of requests from State Farm Florida Insurance Co. that will raise premiums for homeowners by an average of 28.4 percent.

The decision by the Office of Insurance Regulation (OIR), agency officials say, would result in additional premiums of $278 million for the company after all policies come up for renewals beginning Dec. 1.

But the rate increases will target only those customers who now benefit from a handful of voluntary discounts offered by State Farm, including premium breaks for policyholders who also insure their cars with the company, have a home security system or have not filed a claim in several years.

State insurance regulators, however, rejected a company request to reduce premium discounts it is required to offer customers who hurricane-proof their homes, saying the company must provide additional data before regulators will be willing to modify discounts already in place.

?They need to do some more work on that piece,? said Belinda Miller, OIR deputy commissioner.

State lawmakers recently enacted legislation requiring insurers to offer premium discounts for homes that are better able to withstand hurricane force winds. To change the discount, companies must provide a detailed study showing that different discount rates are more appropriate.

?State Farm ran a model but did not have what we considered to be a detailed alternative study,? Miller said.

State Farm and Florida regulators are in the process of negotiating a two-year exit plan. Unable to obtain the premium increases it says it needs, the company in January said it would leave the state?s property insurance market over a two-year period once an acceptable withdrawal plan was approved.

State Farm has long offered discounts as a marketing tool. The discounts are voluntary, but must still be approved by OIR. The agency is also required to sign off if those discounts are discontinued, even though regulators have little or no authority to block the decision.

A company spokesman said eliminating the discounts is needed as the company responds to market conditions and its inability to convince regulators that higher premiums are needed.

?Right now what we?re focusing on is developing a plan to provide a soft landing for our customers and to allow them to continue to work through their agents,? said Justin Glover, a State Farm spokesman.

Formal hearings are scheduled to begin in October over State Farm?s exit plan, but Glover said the company continues to talk with agency officials to reach agreement before then.

Source: News Service of Florida, Michael Peltier

 

[Kurt]

State Farm Florida has dropped plans to withdraw from Florida's property insurance market. Florida Insurance Commissioner Kevin McCarty on Wednesday announced a settlement with the company that includes a 14.8 percent rate increase. State Farm Florida, the state's largest private homeowner insurer, will also be allowed to not renew 125,000 of its 810,000 policies.

 

[scooterbug44]

Wow, we sure got the best of that deal! :roll:

They get to raise rates almost 15% AND dump 15% of their clients.

 

[sadie1]

so if they raise 15% all other insurers will raise 15%