topic Re: New Procedures for Car Insurance? in Community Chat

New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 18:54:48 GMT

All the sudden our State Farm Insurance Agent wants numerous forms signed. And credit checks made. What is going on?

We have been with this agent's office for 45 years. The original agent retired over 7 years ago. And another agent took over his office. We have our home insurance and cars all with this one agent. We have bought cars during that time - no problem until I got my new car in July.

I had to sign all new forms this week. I thought it was because I bought a new car in June and got the car in July.

But today I am getting calls from State Farm about my former car that my son now drives, I got a new bill yesterday. And they still have the insurance under my name for the car my son now drives. They refuse to put it in his name unless he gets a new credit check. My son has been paying his own insurance for his cars since he was 16 years old. He is now 36. So State Farm has a record of him - paying on time - for 20 years. They now want a credit check on him?!?!?!? Before they will give him insurance? He has had insurance with them for 20 years under his name.

What am I missing?

Re: New Procedures for Car Insurance?

RespectLife — Tue, 06 Aug 2024 19:10:39 GMT

My car insurance went up $408.....no changes, no tickets, no violations.

According to my agent...All insurance carriers are cracking down, re-evaluating everying and raising prices etc.

She has seen up to $900 more for NO reasons whatsoever.

All of a sudden, after 6 years, they want to do another home inspection.

I'm w/ an Independent agency that has access to other carriers.

We are shopping around.

Re: New Procedures for Car Insurance?

Mz iMac — Tue, 06 Aug 2024 19:15:51 GMT

@drizzellla Why is there 2 separate auto policies w/the same ins company on the same car?

Are there 2 separate policy#'s?

The credit check may be a new State rule. What did your agent tell you why the credit check all of a sudden? What you're missing should be answered by your agent and/or your State's Insurance Commission. You can call your auto ins directly.

I've never in my life dealt w/an auto ins agent. I always deal directly w/the company.

Re: New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 19:24:50 GMT

@Mz iMac wrote:
@drizzellla Why is there 2 separate auto policies w/the same ins company on the same car?
Are there 2 separate policy#'s?

The credit check may be a new State rule. What did your agent tell you why the credit check all of a sudden? What you're missing should be answered by your agent and/or your State's Insurance Commission. You can call your auto ins directly.

I've never in my life dealt w/an auto ins agent. I always deal directly w/the company.

At the present time there is only one insurance policy on the car.

State Farm refuses to issue an insurance policy with my son's name on it. They want a credit check done on my son before issuing a pollcy in his name.

My husband said can't State Farm check on his credit in their office? and The State Farm Agent said they could not. We had to get a credit check on him.

Re: New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 19:31:04 GMT

@RespectLife

My husband dug out the past 3 years of his vehicle insurance. It had almost doubled. He was shocked. No accident, no moving violations.

And my son had not had one accident in the 20 years that he had been driving until he hit the deer in April. Not sure if State Farm is going to renew his insurance.

Re: New Procedures for Car Insurance?

CelticCrafter — Tue, 06 Aug 2024 19:43:02 GMT

So are you saying your son has never had his own insurance?

If that's the case how would they know he pays his auto insurance bills on time if he's been under your insurance?

If he has good credit, what's the problem? Why the reluctance?

Re: New Procedures for Car Insurance?

deeva — Tue, 06 Aug 2024 19:42:04 GMT

Most insurance companies base their rates for new customers on your credit score. If your son's credit is low, he's likely going to have to pay more.

Re: New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 19:44:32 GMT

@CelticCrafter wrote:
So are you saying your son has never had his own insurance?

If that's the case how would they know he pays his bills on time.

If he has good credit, what's the problem? Why the reluctance?

Yes he had his own insurance. He hit a deer in April. His car was 20 years old and totaled. He then bought my car.

I went out and bought a new car. But State Farm would not change the insurance from my old car into his name.

I am now carrying insurance on 2 cars (my old car and my new car) in my name. Since State Farm will not change the insurance on the car my son now drives into his name,

Re: New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 19:50:12 GMT

@deeva wrote:
Most insurance companies base their rates for new customers on your credit score. If your son's credit is low, he's likely going to have to pay more.

My son had State Farm Insurance for 20 years, since he was 16. His credit score has to be quite good. When he was in college my husband took out student loans in his name. And then my husband paid all the loans out of "the college fund" we had for him. My husband wanted to help establish my son's credit.

Re: New Procedures for Car Insurance?

ScrapHappy — Tue, 06 Aug 2024 19:51:44 GMT

I had a credit check (I think credit score check) for house insurance but it was for a company that insured high value homes. We switched to an insurance broker a couple of years ago. Best decision ever.

Re: New Procedures for Car Insurance?

Sage04 — Tue, 06 Aug 2024 19:52:24 GMT

They check your credit so that they can determine what rate to give you. For some reason they think that someone with a poor credit score would file more claims. Does not make any sense.

What will they come up with next? I just went with a new Insurance Company and as far as I know they did not check my credit. They would have had to let me know if they did.

Re: New Procedures for Car Insurance?

Sage04 — Tue, 06 Aug 2024 19:53:59 GMT

@deeva wrote:
Most insurance companies base their rates for new customers on your credit score. If your son's credit is low, he's likely going to have to pay more.

@deeva sorry about that. Didn't realize that I repeated the same thing you said.

Re: New Procedures for Car Insurance?

Sage04 — Tue, 06 Aug 2024 20:03:06 GMT

@drizzellla did you complete the Motor Vehicle Title application with the State? They would have to see the title in your son's name before insuring him.

Maybe he can check around and see what others are offering.

Re: New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 20:01:06 GMT

@Sage04 wrote:
They check your credit so that they can determine what rate to give you. For some reason they think that someone with a poor credit score would file more claims. Does not make any sense.

What will they come up with next? I just went with a new Insurance Company and as far as I know they did not check my credit. They would have had to let me know if they did.

But since my son has been with State Farm - at the same office for 20 years - Wouldn't State Farm have a good idea what kind of risk they are taking by insuring my son?

When I worked for Disney they insisted that all employees have their crdit checked, if you were to remain an employee.

I understand a company has to be mindful of the risk. But 20 years should be a resonable amount of time to show the risk they are dealing with.

Re: New Procedures for Car Insurance?

Sage04 — Tue, 06 Aug 2024 20:05:44 GMT

They are just trying to justify having to add on a few thousand dollars more.

Re: New Procedures for Car Insurance?

Tinkrbl44 — Tue, 06 Aug 2024 20:08:38 GMT

@drizzellla wrote:
@Sage04 wrote:
They check your credit so that they can determine what rate to give you. For some reason they think that someone with a poor credit score would file more claims. Does not make any sense.

What will they come up with next? I just went with a new Insurance Company and as far as I know they did not check my credit. They would have had to let me know if they did.

But since my son has been with State Farm - at the same office for 20 years - Wouldn't State Farm have a good idea what kind of risk they are taking by insuring my son?

When I worked for Disney they insisted that all employees have their crdit checked, if you were to remain an employee.

I understand a company has to be mindful of the risk. But 20 years should be a resonable amount of time to show the risk they are dealing with.

@drizzellla

Sorry if I missed it, but I assume you had a frank discussion with your agent. What do THEY say?

Personally, I would shop around with a couple insurance agents and see what they come up with.

Not that doing so will start a bidding war, but people have to get over the idea that a "long time customer" means anything anymore. It doesn't.

You are a "free agent" and can change companies every single year if it benefits you to do so.

Re: New Procedures for Car Insurance?

drizzellla — Tue, 06 Aug 2024 20:09:36 GMT

@Sage04 wrote:
@drizzellla did you complete the Motor Vehicle Title application with the State? They would have to see the title in your son's name before insuring him.

Maybe you he can check aroubd and see what others are offering.

Yes, we changed the title of my old car to my son's name. As soon as he took possession of my old car.

Oh, I think we burned our bridge with our State Farm agent. Since my husband did not understand why they would not put my son's name on his car insurance, The agent went into overdrive about us signing new forms on all our vehicles.

Re: New Procedures for Car Insurance?

Love my grandkids — Tue, 06 Aug 2024 20:11:04 GMT

@drizzellla You say your son has been with SF for 20 years but the insurance is NOT in his name so *technically* he hasn't been with them for 20 years.

Do I understand this correctly? If he wants it in his name he has to get a credit check. Is there some reason he won't or doesn't want to?

Re: New Procedures for Car Insurance?

Kachina624 — Tue, 06 Aug 2024 20:18:37 GMT

@drizzellla. You probably need to be asking State Farm, not us. I haven't had any such requests from my insurance company.

I wonder why credit is such an issue with auto insurance? If you don't pay, all they have to do is cancel it. It has never been mentioned when I've gotten insurance.

Re: New Procedures for Car Insurance?

Tinkrbl44 — Tue, 06 Aug 2024 20:15:13 GMT

@Love my grandkids wrote:
@drizzellla You say your son has been with SF for 20 years but the insurance is NOT in his name so *technically* he hasn't been with them for 20 years.

Do I understand this correctly? If he wants it in his name he has to get a credit check. Is there some reason he won't or doesn't want to?

@Love my grandkids

ITA .... A 36 year old man is a grown up and shouldn't be on his parents' insurance ..... unless there are extenuating circumstances.