State Farm Current Rates, News & Information

Private Insurance Market Pulling Back from National Flood Insurance Program

Posted in Home Insurance , State Farm

August 27th, 2010
No Comments

A number of private insurance companies are reconsidering participation in the National Flood Insurance Program (NFIP) after a Congressional stall and massive losses. The future of the NFIP has been in question for some time as Congress looks at ways to provide flood insurance to individuals in need. However, after suffering through months of ups and downs in the insurance sector, some insurers think the best solution is to pull out.

NFIP Has Been on Shaky Ground for Some Time

The National Flood Insurance Program has been going through a series of changes for some time that has left it in a semi-fragile state. Lawmakers understood that changes needed to be made because standards were proven unsatisfactory, so when the program expired, Congress simply approved a short-term extension in hopes of getting it on the right track.

Unfortunately, that short-term extension resulted in several more that often left policyholders unable to make claims on their homes after a flood because the program had expired. Now, lawmakers have taken steps to improve the program with a flood insurance overhaul, but for some insurers, it’s already too late.

Insurers Looking for a Way Out

Due to the instability of the NFIP, private insurance companies are now reconsidering their participation. In addition, many insurers simply don’t have the money they need to pay out claims. FEMA, the programs overseer, is currently seeking a $19 billion taxpayer bailout to properly reimburse insurers, but this doesn’t help current shortfalls seen by insurers.

To save its budget, State Farm Mutual Insurance Company, the nation’s largest provider of flood insurance, pulled out of the NFIP in June. The company handled over 800,000 customers and left the NFIP in a position to find them all new policies. Now, another large company, Fidelity National Property and Casualty Insurance is considering other options if the government doesn’t find effective ways to reimburse claims.

With the program already in the red, it is possible that other large companies could follow suit. Hopefully the overhaul will create the funds to keep insurers around and customers covered if their homes are flooded.

Today’s News: Nonprofit Health Insurers Hoard Cash, State Farm Sheds Home Insurance Customers and Ohio Auto Insurance Stays the Same for 40 Years

Posted in Auto Insurance , Blue Cross Blue Shield , Health Insurance , Home Insurance , State Farm

August 9th, 2010
No Comments

Reports show that many nonprofit health insurers have been hoarding cash, State Farm Insurance plans to drop home insurance customers and liability auto insurance in the state of Ohio has remained unchanged for 40 years.

Nonprofit Health Insurers Hoard Billions in Cash

According to a new study from the independent group, Consumer Union, many nonprofit Blue Cross Blue Shield health insurance companies have hoarded $9.1 billion dollars (or $855 per member per year) in extra cash over the last decade. What’s worse, the companies have held on to this money even after proposing double-digit premium rate hikes.

Seven out of 10 nonprofit Blue Cross Blue Shield companies held at least three times the amount that regulators required of them to maintain minimal solvency. With these reserves held, staff attorney from Consumer Union said the nonprofit should be able to reduce prices for consumers (Wall Street Journal).

State Farm Sheds 125,000 Home Insurance Customers

Recently, State Farm announced that it would be shedding 125,000 Florida home insurance customers due to the increased risk of hurricane damage in the state. This news comes only weeks after the company announced that it would be dropping its flood insurance customers nationwide and leaving the National Flood Insurance Program.

What’s unfortunate for the disbanded customers is that their home insurance options are not plentiful with other companies, and many of those who are offering don’t have the same financial backing as State Farm, therefore resulting in them charging more (Naples News).

Ohio Auto Insurance Unchanged for 40 Years

The lucky residents of Ohio have benefited from minimum liability auto insurance limits that haven’t changed since 1970. However, according to the Daytona Daily News, the low minimum limits have not been totally beneficial as they have created gaps between coverage payout and repair costs.

Why such a big gap? Because in 1969, a V-6 Chevy Impala four-door sedan sold for $2,894 while they currently sell for $24,290. With the cost of the car (and hence the cost to repair the car) being significantly higher, the coverage costs would need to increase above the current minimums of $12,500 one bodily injury/$25,000 all injuries/$7,500 property to be useful (Daytona Daily News).

State Farm Asks Toyota to Reimburse Pedal Claims

Posted in Auto Insurance , State Farm

April 22nd, 2010
No Comments

Only months after Toyota recalled millions of vehicles for faulty sticky pedals, auto insurer State Farm is asking the car manufacturer to reimburse it for claims paid out on associated crashes.

According to a recent USA Today article, the auto insurance company is demanding repayment from Toyota for an amount that could total between $20 and $30 million.

About the Toyota Recalls

If youre not familiar with the Toyota recalls then heres a quick recap. At the beginning of 2010, Toyota recalled millions of its vehicles for a number of issues, including accelerators sticking (also known as sticky pedals) and brakes failing. These issues caused accidents and resulted in owners having to park their cars until they were able to be fixed.

To help remedy the situation, car insurance companies like State Farm paid out claims for the accidents caused by faulty vehicles. However, the insurer now says it wants its money back.

If the insurer is paid back, the result could also benefit auto insurance customers affected by the faulty cars. If State farm is reimbursed then their customers who filed claims on their Toyotas could be refunded any insurance deductibles they paid. However, it has been noted that customers should not look for a check any time soon because all determinations associated with the issue could take months.

What about Customer Auto Insurance Rates

Many customers have been concerned about how their auto insurance rates will be affected by all of the changes going on with Toyota. Originally, experts thought that customers wouldnt suffer higher rates due to the recall.

However, some insurance industry spokespeople now think that if Toyota refuses to reimburse State Farm or other insurers for the claims, car insurance companies could end up charging higher rates to cover Toyota vehicles.

If you own a Toyota, have you seen a difference in your auto insurance rates?

Cool iPhone App Improves Driving Skills and Offers Insurance Discount

Posted in Auto Insurance , Save on Auto Insurance , State Farm

March 30th, 2010
1 Comment

In order to help young drivers improve their skills behind the wheel, State Farm Insurance has released a free iPhone app with a driving lesson component. But what’s really cool about this app is that those who utilize it may also be able to receive save on auto insurance with a discount from the insurer.

Steer Clear! A New Driver Is In Town

The new app from State Farm is called Steer Clear and it was created to help drivers up to age 25 improve their driving skills. The good news is that by utilizing the app properly, there could be some auto insurance discounts available.

In order to properly use the app, the driver must complete assignments like locating important controls (hazard lights, etc.) or making sure to slow down (not speed up) at yellow lights. The app asks questions for before, during and after the drive and times your answers.

However, it’s important to know that the app is not to be used while operating a vehicle.

Save on Auto Insurance

After you’ve completed the set number of assignments for the app’s program, you could qualify for as much as a 15 percent discount. In order to claim the discount,you would need to bring the phone to an agent. This is a great way to save on auto insurance.

However, if you’re not currently insured with State Farm, this doesn’t mean you can’t receive car insurance discounts on your coverage. Spend a little time browsing Go Insurance Rates to learn about ways to lower your rates and take advantage of other great auto insurance tips.

Florida Auto Insurance Rates Increase

Posted in Auto Insurance , State Farm

February 8th, 2010
No Comments

In the state of Florida, recent reports show that State Farm has increased auto insurance rates by 9.2 percent. This increase in rates is said to affect a large number of clients in the state. At last count, the affected policyholders totaled 2.7 million.

Why Are Rates Increasing?

A spokesman from State Farm insurance acknowledged the rate increase and explained that the recent trend of has a lot to do with an increase in auto claims filed in recent times.

Also, a representative from the Insurance Information Institute, Lynn McChristian, explained that the recession may also play a role. With few people purchasing auto insurance, others have to compensate for the decrease in revenue companies are bringing in.

What to Do if Your Rates are Increasing?

If you find yourself in a predicament where your auto insurance rates are increasing, there are some actions that you could consider to lower your rates:

• Increase your Deductible: By raising your deductible amount, you automatically lower your auto insurance premium.
• Try low-mileage insurance: Programs like Progressive’s Pay as You Drive allow you to pay for the miles you drive, potentially lowering auto insurance costs.
• Fix your credit: Since many auto insurance companies price coverage premiums partially according to credit scores, by fixing yours, you could qualify for lower premiums and reap additional benefits (auto and mortgage loans) as well.
• Look for discounts: Many insurance companies offer discounts for various reasons (loyalty, good student, good driver). Check with your insurer to see what you may be eligible for.

Unfortunately, individuals and Florida may be on the hook for higher premiums, but if they find outside ways to lower their coverage, they may not have to pay as much as it seems.

Everything You Need to Know About State Farm Roadside Assistance

Posted in Auto Insurance , State Farm

February 7th, 2010
No Comments

When it comes to emergency assistance programs like State Farm roadside assistance, you can drive with confidence even in an older vehicle. These days, many businesses are getting in the game by providing their customers with this useful benefit. Many insurance companies and even credit card providers have some type of roadside assistance program available for their customers, and many more will begin offering it as they do not want to be behind the game. But while this is a great option for making sure you’ll get help while driving, you need to know more about the program in order to determine if it’s right for you.

State Farm Roadside Assistance Basics

State Farm is not like AAA in the sense that they have their own vehicles to come and tow your car or bring you gas when you need it. Instead, they will reimburse your costs when you call another service provider to come help you. This is actually beneficial because you are able to call any emergency roadside assistance provider and not have to rely on a regional network or local towing company. You can essentially call any of them and recoup the cost for State Farm later on.

In order to be sure you are covered for roadside reimbursement, make sure you contact your State Farm policy provider and verify that you have this benefit. Assumptions could be costly, especially when you are stranded on a street not knowing which number to call for aid.

Considering Roadside Assistance

It is important to note that having your vehicle towed could affect your auto insurance premiums. If you are concerned with this, you may decide to go with a different company for your roadside assistance needs. However, as mentioned previously, you may be dependent on a company with limited resources and end up waiting hours for a tow truck to finish its route.

In general, it’s best to have this type of benefit when you are driving an older vehicle or are unable to change your own tires. The cost of calling a towing company for assistance when you are not a member could be great.

If you’re looking for auto insurance rates from companies like State Farm, rest easy knowing that they do provide this benefit. Fill out our online form and you can begin comparing insurance quotes from the top insurers all competing for your business. The quotes are absolutely free.

State Farm Increases Home Insurance Rates for Gulf Area Homeowners

Posted in State Farm

November 15th, 2009
No Comments

According to Mississippi Insurance Commissioner Mike Chaney, State Farm home insurance policyholders residing in the Gulf Coast could be seeing a price increase of almost 20%. Chaney recently shut down a proposed 45% rate hike and approved the 19% increase for wind related insurance services provided by State Farm Fire and Casualty Co. But the bad news doesn’t end there.

State Farm Drops Wind Policies

Chaney stated that since State Farm didn’t receive its proposed 45% increase, it could drop wind coverage for several policyholders. The rates won’t take effect until February of next year.

The Gulf area is still recovering from damages it sustained during Hurricane Katrina just four years ago. State Farm is still expected to withdrawal from the area and is no longer writing new policies.

Benefits of State Farm Roadside Assistance

Posted in Auto Insurance , State Farm

October 9th, 2009
No Comments

Those looking for emergency roadside assistance have several options in the state of Florida, and State Farm’s Road Ranger program is one of the best they can choose.

Road Ranger History

What originally started as a 7 vehicle team of helpers has now evolved into a 13-car crew, and their number one goal is to help travelers who are stranded or in need.

In late 2008, State Farm announced their commitment to helping out drivers frequenting the southeast Florida interstate highways. Complimentary assistance is offered from 6 a.m. to 7 p.m on weekdays. The sponsorship of the Florida Department of Transportation is allowing the continuation of the service despite the most challenging of economic climates not experienced since the Great Depression.

Program Goals

According to a press release issued by State Farm, the main goal of the Road Ranger assistance program is to:

• Reducing the number of secondary crashes.
• Offering help and peace of mind to stranded drivers.
• Removing roadway debris.

State Farm Roadside Assistance Phone Number

If you’re stranded and need help, the best thing to do is to call the number of your agent on your State Farm insurance card. Remember that State Farm roadside assistance will reimburse you if you call a local towing company for help, provided you actually have the service in your car insurance policy. This means you are not limited in which companies you can call on for aid.

If you’re looking for more information about State Farm roadside assistance or are searching for free insurance quotes from top notch companies, fill out our online insurance form. You’ll receive free rates information in seconds!

Best Auto Insurance Providers

Posted in Auto Insurance , Auto Insurance Companies , Hartford Mutual , State Farm

September 24th, 2009
1 Comment

The biggest test of how good an auto insurance provider is usually happens when a claim is being processed. How quickly the claim process is settled, and the quality of the parts they pay for is all part of what makes an insurance company stand out. According to the last ranking survey, Consumer Reports surveyed 21,228 subscribers who filed a claim from January 2001 through spring 2004. Based on that information the top ten spots are filled by:

• New Jersey Manufacturers Insurance Co.
• Amica Mutual Insurance Co.
• United Services Automobile Association
• Auto-Owners Insurance Co.
• State Automobile Mutual Insurance Co.
• USAA Casualty Insurance Co.
• State Farm Mutual Automobile Insurance Co.
• State Farm Fire and Casualty Co.
• Hartford Underwriters Insurance Co.
• Erie Insurance Co.

The ranking was based on an overall satisfaction score, problems with claims and delayed payments. To see how your auto insurance company ranks, be sure to check with consumer reports.

Auto Insurance Discounts Reward Military Service

Posted in Auto Insurance , Geico , State Farm

August 20th, 2009
1 Comment

Unfortunately, there are too many stories of service men and women who have come back from serving their country only to find out that the benefits and perks promised to them are not as helpful as anticipated. However, that is not to say that there are not other organizations looking out for the overall welfare for those who are onactive duty, retired from the Military, or a member of the National Guard or Reserves. One such industry that is respectful of its commitment to our armed forces are auto insurance providers, and many times they are willing to offer a 15% discount on auto insurance costs for military personnel.

The trend of helping out service personnel was first started by USAA (United Services Automobile Association) and Geico (Government Employees Insurance Company), and they are still the largest providers of this discount. However many other insurers such as State Farm, have also decided to come aboard.

The discount for military service personnel was backed by theNational Association of Professional Insurance Agents. They fought for those who protect the country’s freedom and released an announcement demanding that the underwriting requirement be waived in the case of returning U.S. troops, thus allowing service personnel a better discount on high insurance rates when putting their previously stored vehicles back on the road.