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So I've had State Farm for 32 years.My daughter turned 16 about a year ago and we put her on our insurance.

Her insurance rate was nearly 5x that of mine or my husband's....but that was expected. Well, in March she got into a fender bender. No damage to her car, a scratched bumper on the other (with "victims" screaming about how injured they are). Payout for physical damage was $600, not sure about the medical but the "victims" lawyered up.

Then in July, she was in a major accident that totaled her car and another (no injuries). Well, because of the two back to back claims, State Farm DOUBLED her insurance. We went from paying about $415/month for her, myself and my husband to over $636. Doesn't matter that I paid for those claims probably 10x over and then some in the 32 years I've been with them.

Nope. Not only did they increase her rates but they added a "penalty" or "fee" I can't remember what they called it. I called several insurance companies and reduced my auto AND homeowners insurance by close to $5K by going with Liberty Mutual.

Actually, I'm glad they did that to me.Probably saved me money in the long run.

Review about: Car Insurance.

Review #940820 is a subjective opinion of a user.

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Anonymous
#1231012
Something you need to understand is the basic principles of how insurance works. What you paid to a company last year doesn't influence the next year or any renewal in the future.
Insurance premiums aren't a savings account. They don't stick your money in an account and decide that since you didn't have any claims, you now are entitled to that money. You paid for protection for that contracted period. When that contract period ends, a new one begins.
You pay a premium, it goes into a pool and anyone who paid into that pool pulls from that pool when they have a claim. Basically, just because you didn't have a claim, doesn't mean others didn't have a claim. Your money, my money and their premium money is long gone. We all paid for everyone else's claims.
From year to year, your policy ends and then a new one is started. You receive discounts for your length of time with a company, but you receive new charges based on future risk. When you receive an offer of renewal, it's an entirely new contract.
If an insurance company conducted business based on your philosophy that they should charge based on what you've paid in, how would they be able to cover anyone's claims that have been insured less than decades?
You weren't done wrong. These are normal insurance practices.
Anonymous
#1230993
You need to be very sure you were given the proper rate quote by the new company. Did they look at her accident history? Did they include your daughter in the quotes? Did they notify you in writing that they are including her and her accidents?
I've NEVER seen a company be able to beat another company's rates by that much with the same info. I've been in the business over 20 years.
As for her rates, that's normal considering her age and record. Insurance is a risk based business. Your history and loyalty to a single company for so long is the reason they offered your family a renewal. A driver under the age of 18 with two at-fault accidents is a gigantic risk for future losses. If you hadn't been with them, consistently for so many years, they would have non-renewed your policy or excluded her of coverage as a driver. Instead, they charged the rate applicable to the risk.
My suggestion is that you send your daughter to driver's education classes and limit her ability to drive at night or with friends in the vehicle. You may also want to limit her ability to use a phone while driving. I would also raise my liability coverage to protect my assets.
Statistically, a female under the age of 19 has a 75% chance of having one accident. She has already exceeded that statistic and you should be concerned with what may happen next. I know it's tough to hear this, but I deal with thousands of clients and two back to back claims, that young, is not usual and you should be
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