State Farm Insurance...NOT a good neighbor!

Like a good neighbor...? Hardly!

Like a good neighbor...? Hardly! State Farm is not there when you need them. Rather, regardless of how long they have known you or how many years you have been a dedicated customer, they will drop you in a second if you actually use the insurance you are paying for.

In our case, we've had our car and homeowners insurance with the same State Farm agent since 1989, and I personally have had my car insurance with State Farm since I was old enough to drive (around 1985). Our homeowners insurance was recently dropped by State Farm for a legitimate claim on our house. A water main broke under the foundation and was not only causing damage to the home but was wasting a lot of water giving us an astronomical water bill. It had to be fixed immediately. The houses in our area were built with shoddy polybutylene pipes. Nearly all the houses in our neighborhood have had to have their houses completely re-piped due to breaks under the foundation. Over the years we have been in our home we have had plumbing problems but never bothered to call our insurance agent except when it was something we couldn't take care of our-self. A pipe cracked or we had a leak, we called a plumber and had it fixed. The city was turning up the water pressure in the neighborhood causing some damage to our neighbor's plumbing, so we called a plumber and had a regulator added to our water line to keep from having problems. We didn't claim these things on our insurance and accepted them as part of our responsibility as homeowners. We are not insurance abusers by any stretch of the imagination.

After the water line break, we called State Farm and they sent out an adjuster. He told us that we would be better off repiping the house rather than fixing the broken line as other things would continue to break and we would have further problems down the line. Our plumber told us the same thing. The adjuster also said that if we had the house re-piped and sent proof to State Farm, in the form of the plumbing bill, we would have no further problems and would not be dropped. He explained what our insurance would and would not pay for, what our financial responsibilities were, inspected the damages, cut a sample of our damaged carpet and spoke with our plumber who had already begun work on the house. We were fairly distraught as we didn't know how were were going to be able to pay for all of this. Thankfully, we later received a check from State Farm for around $2,900 for damages. We were thankful to have the financial help.The amount didn't come close to paying for all the damage, let alone the complete re-pipe, but we understand it's part of our responsibility as home owners.

However, to our surprise and despite what we were told by the adjuster, we received a letter in the mail a month later informing us we were being dropped by State Farm for "your claim activity". On top of that, they are raising our car insurance rates since we are no longer a multi-policy holder. To be fair, we have had a few minor claims since being with State Farm for the past couple of decades, three of which were due to water damage, one that was due to a freak wind and hail storm that damaged everyone's home in the neighborhood. We had a water damage claim in 2004, one in 2006 and the most recent 2011. This is the reason we decided to get the house re-piped so we wouldn't have any more plumbing incidents.

Insurance is the only business in the world where you get penalized for using the service you are paying for like you are suppose to use it. It doesn't matter the years you've been with them, it's just cold and calculated business. They are not there to help, but rather to collect your money. If you need to actually use your insurance, regardless of the circumstances, chances are you will be dropped. To make matters worse, the other insurance companies don't want to pick you up 'you've had a claim in the last three years.' So much for the "good neighbor". So much for 'insurance'.

The 'good neighbor' is only an advertising catch phrase and far from the truth. State Farm Insurance is a scam. Buyer beware.

For more State Farm scam stories...

http://consumerist.com/2007/06/like-a-good-neighbor-state-farm-wants-to-steal-your-money-and-send-you-to-jail.html

http://www.scam.com/showthread.php?t=2824

Sorry to hear about this... Hope things work out.

I think that's pretty much any insurance company.

My parents live in Florida and several years ago, when a hurricane hit their area, their insurance company (Traveller's I think) dropped them even though THEY DIDN'T EVEN FILE A CLAIM! They now lived in a "high risk" area.

Fortunately, the only homeowner's claim I had to make was when a drunk driver tore through my yard, aced my mailbox and took out a bunch of shrubs. Because he was insured, my company (Nationwide) could recoup their money by going after his company. Otherwise I'm sure my rates would have gone up too.

You're right Ult, it is the only business where you get penalized for using a service you've been paying for. What a racket.

tohostudios wrote:

You're right Ult, it is the only business where you get penalized for using a service you've been paying for. What a racket.

Yes it is. I will be posting that letter EVERYWHERE!

Regardless if they drop you or not, they lied to me about the re-pipe. LIE #1! Then when I called them on it, they called me a liar and tried to say he didn't really say that. When I told them my plumber was right there standing next to me and heard the whole conversation, they got real silent and said, we'll have to call you back. They actually called the plumber (who also happens to be a pastor at my church), who immediately called me back after his conversation with them and told me what he had said to them. Weeks later State Farm calls me back and says they are still dropping us because my plumber didn't verify my claim. LIE #2!

i've had state farm for 13 years, both car & home. had to use it on a few different occasions too. they've always been very good to me.
sorry to hear you are having difficulties.

mc666 wrote:

i've had state farm for 13 years, both car & home. had to use it on a few different occasions too. they've always been very good to me.
sorry to hear you are having difficulties.

I would have said the same thing a year ago. I'm sure you saw, I've been a customer in one way or another since the mid-80's. One claim in the last three years and they drop us. What sucks is every other company now wants to charge us double and triple what we were paying because "you've had a claim". So freakin' what?! That's what insurance is for.

I only have car insurance through State Farm. I've never had a problem with them when I've had to file a claim. Sorry to hear of your troubles with them.

Scott, I was once an insurance agent. I have lots of friends in the business, if you need quotes or whatnot, let me know, I can give you contact info. Sorry about SF.

That really SUCKS!!!!! I have heard horror stories about state farm - I remember even back in college, a friend with state farm got royally screwed in a car accident by them. I am very thankful I have USAA and haven't had any issues with them at all.

I suppose all the big companies are the same overall... Anyone like Allstate or Geico?

Sorry to hear about the problems you've been having, Scott.

That really sucks.

I used to have car insurance with State Farm. I had a comprehensive claim once (car broken into, windows smashed) and they ended up doubling my rate. Even though I wasn't even driving! I switched to Progressive and never looked back.

We've had State Farm for several years on the House and Cars.Never had a problem.......yet! Im sorry for your Scot.Insurance is a complete racket.

We've been with State Farm (home and auto) for over 20 years and have had a few claims on auto (thanks to my daughter) but have never had any issues with them.

Can't count the number of times I didn't file claims (damaged windshields) because I didn't want them to raise my rates. So I pay for a service I don't use when I could because they'll charge me more because I did. And they still get my money for the service I don't use. What a great racket.

I've been with State Farm forever too. My best advice Ult would be go in and talk to them face to face explaining everything. Making sure to emphasize your long history with them and their advertising "Good Neighbor" claims. Any little issue I've had with them over the years a personal visit with my agent seemed to at least resolve the problem.

As Bart Simpson might say, "Ouch, man!"

I've never dealt with State Farm, Ult, and after reading your story I will make sure that I never do!!

The reason I am posting this here is because I promised them I would be posting my letter EVERYWHERE! I know a big company like that doesn't give a crap about my little complaint letter, but I'm going to post in anyhow. I'm going to make a web page for it as well and make sure it gets into the search engines so that when people are searching State Farm or Insurance it will come up. If you PAY for insurance, you should be able to USE that insurance if you need it.

Thrasher73 wrote:

We've had State Farm for several years on the House and Cars.Never had a problem.......yet! Im sorry for your Scot.Insurance is a complete racket.

Have you had to make a claim?

Fat Freddy wrote:

As Bart Simpson might say, "Ouch, man!"

I've never dealt with State Farm, Ult, and after reading your story I will make sure that I never do!!

And that is the reason I am posting this everywhere!

Quote :

I'm going to make a web page for it as well and make sure it gets into the search engines so that when people are searching State Farm or Insurance it will come up.

You GO Ult! Stick it to'em!!!

jstate wrote:

Can't count the number of times I didn't file claims (damaged windshields) because I didn't want them to raise my rates. So I pay for a service I don't use when I could because they'll charge me more because I did. And they still get my money for the service I don't use. What a great racket.

I've been with State Farm forever too. My best advice Ult would be go in and talk to them face to face explaining everything. Making sure to emphasize your long history with them and their advertising "Good Neighbor" claims. Any little issue I've had with them over the years a personal visit with my agent seemed to at least resolve the problem.

Already did that. Went through ALL the channels. My agent sent my letter and complaint all the way to the top and she fought for us, telling them that we have been her customer since the 80's. She has sponsored my kids sporting events. I don't have a problem with our agent. She's a nice lady who is trying to run a business. It's the BIG CORPORATION. They don't care. Like I said, it's cold and calculated business. The whole "Good Neighbor" line is a lie.

if the problem is specifically with State Farm & not with how the insurance system is geared, then should you consider looking into legal action?

I think you should look into it. One claim in three years is not exorbitant and you were doing what the adjuster said to. Did you get any of what he told you in writing?

Dark Horseman wrote:

I think you should look into it. One claim in three years is not exorbitant and you were doing what the adjuster said to. Did you get any of what he told you in writing?

No, and therein lies the problem. It's just my word, and the word of the plumber, against them. I didn't even think to have something like that put in writing. He said to do it that way, I did it that way, I figured that would be the end of it. Didn't even think to have it put in writing or question him on it. Live and learn.

No, one claim in three years isn't exorbitant. We are far from abusers. It's because the houses in our area are built with those shoddy pipes and they don't want to cover the water problems everyone is having. (Thus the reason we replaced every pipe in the house and the piping that runs to the city water outside the house.)

I still have my car insurance with them, but I'm shopping that around too.

Since my Father was in Real Estate I learned to make people write what they say down. You're probably in a no win here so probably need to move on.

I'm with Nationwide and have been forever. The Auto has been decent and they have a one accident forgiveness policy if you've been with them awhile. Never had to use the homeowners so I don't know how good it is.

I am sorry to hear of your problems with State Farm. Sadly, its not just them. I have had Travellers for a long time (previously I was with State Farm) and had someone hit me a few years back. Travellers got all their money back except $145 and then tried to use that as justification for raising my rates. I complained enough and was getting ready to switch when the relented, only to raise it anyways the next year.

ultmetal wrote:

Thrasher73 wrote:

We've had State Farm for several years on the House and Cars.Never had a problem.......yet! Im sorry for your Scot.Insurance is a complete racket.

Have you had to make a claim?

Yes,Once on a vehicle and twice when our basement flooded.Like i say,no problem yet.