New Procedures for Car Insurance?

drizzellla · ‎03-14-2010

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?

RespectLife · ‎02-27-2012

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.

Mz iMac · ‎07-26-2014

@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.

"Never argue with a fool. Onlookers may not be able to tell the difference."

drizzellla · ‎03-14-2010

@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.

drizzellla · ‎03-14-2010

@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.

CelticCrafter · ‎03-09-2010

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?

deeva · ‎03-09-2010

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.

drizzellla · ‎03-14-2010

@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,

drizzellla · ‎03-14-2010

@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.

ScrapHappy · ‎03-28-2010

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.