Wednesday, May 20, 2020

State Farm Cuts Rates

Insurance Commish Mike Chaney issued the following statement. 


State Farm announced Monday, May 18, 2020 that the company will reduce automobile rates by approximately $2.2 billion. The rate reduction for Mississippi drivers will be approximately $45.3 million. Each policyholder should receive approximately 9.5 percent in reduced premiums effective August 10, 2020.

State Farm leaders cite declines in miles driven and fewer accidents as the basis for the reductions.

“It only makes sense for State Farm to reduce automobile rates given the changes in driving we’ve seen in the past several months,” said Mississippi Insurance Commissioner Mike Chaney. “I’m proud of State Farm for supporting their customers in this way and am pleased to approve their reductions. I encourage other companies to reduce rates.”

Pursuant to the Governor’s COVID-19 emergency proclamation, issued on March 14, 2020, Commissioner Chaney has granted an expedited approval of the State Farm auto rate reduction.

 

34 comments:

Anonymous said...

As an independent agent that represents many other carriers, I think its bullshit that an elected Insurance Commissioner puts these rate reduction advertisements out for State Farm(second one I've seen in the past year), but not for any other company. Other companies don't get the same treatment and it is Chaney's office that approves and denies rate increases and decreases. Simply a free advertisement for the company that screwed everyone during Katrina. I wonder what kind of kickback Chaney gets for this?

Anonymous said...

@11:00, I am independent agent as well and agree that this type of post/endorsement from Chaney is total bullshit.

Anonymous said...

@11:00 - if you “donated” to his campaign, I’m sure you could get advertisement from him too. Do you not understand how political contributions work?

Anonymous said...

Another life long politician

Anonymous said...

I bet Chaney didn't crow about those high rate increases, moratoriums on writing business, dropping people after one claim, and 2% wind and hail deductibles that State Farm has done in the not so distant past.

Chaney, you're fixing to catch an earful for this backroom deal. Guess you need to make some extra cash before retirement. Way to alienate everyone else who you are supposed to be a voice for. #snakefarm

Jake from State Farm said...

I don't see a problem with this. More insurance companies should be giving their customers a break during this crisis.

Put another way - don't hate, imitate.

Anonymous said...

Chaney also crowed about a State Farm rate decrease back in February of 2019. I guess no other company has reduced rates but them...

Anonymous said...

11:28 most of them are, yet elected official Mike Chaney doesn't have a press release for those companies like he does for State Farm(twice now). Many companies have dropped premiums for both Home and Auto in the past and Chaney has been mum. That's the crux of issue.

Anonymous said...

I think you will find that around April 7, 2020, Insurance Commissioner Chaney also announced that several other auto insurance companies, including Geico, Allstate, Travelers and a few others, we giving premium credits to their insured drivers during the COVID-19 pandemic because people are driving significantly fewer miles due to the stay-at-home orders issued by Governor Reeves. He did not single out any individual company at that time, and it may well be that State Farm decided on a rate decrease instead of a premium credit.

Anonymous said...

It's prolly cuz State Farm is eating twice as much cash as the next competitor due to the pandemic.

Granted, they are the largest insurer in the state, so the number sounds better.

Anonymous said...

WHERE are the discounts for April and May they already promised? I have not seen em!

Anonymous said...

king fish......why don't you ever report on the fact that the insurance industry is totally exempt from federal anti-trust law , and laws regulating collusion and price fixing. why do you never report on that?

Anonymous said...

As an agent, State Farm's auto rates were 8% higher than most of my companies and the homeowners was also higher. Be warned a rate reduction of 9.5% may only be 3% for you and their higher rated classes of business may be 10% on the rate reduction. Not everyone gets 9.5%. Everyone does need to be forewarned that some of the companies are putting on 1 and 2% wind and hail deductibles and will not pay for cosmetic roof damage from hail.

Anonymous said...

I have USAA auto insurance and they gave a 20% credit for 3 months as of May.

Anonymous said...

Chaney is trying to create the impression that he had something to do with this. The same as lying. And if you have insurance you already know anyway.

Anonymous said...

dont kid yourselves. insurance rates only go up, they never come down. thats because the entire insurance industry participates in price fixing since they are exempt for all federal regulation . they operate just like the five mob families of new york who routinely meet for a big sit-down in order to divide up territory and the rackets.
insurance companies do not compete for the benefit of the consumer, they all work together to keep insurance premiums as high as possible.
lets see if all the ''independent agents'' commenting on this thread wanna strap this one on.

Anonymous said...

I'm a state farm customer and my rates haven't dropped during this Covid19. Screw over the customers.

Anonymous said...

Its a PR game. State Farm will drop rates, load the books by buying business, then claims will start rolling in and they'll be shedding customers faster than a snakes skin. I bet Dept. Chaney wont tell people to shop because they are taking a rate increase.

Anonymous said...

Even with the rate decreases State Farm will be much higher than other companies.

If you do not shop insurance rates yearly then you are a fool. Being a long term client doesn't get you special treatment it just insures that you are paying more than new clients.

Anonymous said...

I always wonder how politicians like Chaney convince themselves they are doing a great job. Likely they say things like "well, it's the only way we can get insurance companies to write in the state" or " We can't make insurance companies do business in Mississippi".

Whatever bullshit excuse they tell themselves it is clear that rate payers do not have someone looking out for their interest in Mississippi. Auto and homeowners insurance is so much higher here than in most parts of the country.

Anonymous said...

Dickie Scruggs was instrumental in getting Cheney elected. Think about it.

Anonymous said...

State Farm paid most of the cost for my roof replacement two months ago. I was surprised to learn that I no longer have $1000 deductible but a percentage of what the policy covers as the value of my house.

I get so damned much sales and other mail from them, I failed to catch that fine print in a mail-out. Do all the other homeowners' policies do this same thing?

Anonymous said...

@9:45 no. A large majority DO NOT have a percentage wind & hail deductible. Snake Farm has started slipping that into policies starting a few years ago. They don't just come out and tell you overtly. Mayne they should get the esteemed Commissioner to put our a presser stating "All State Farm property policy holders be aware they have gone to a percentage wind/hail deductible. This percentage is a % of your coverage A(dwelling) coverage, not the amount of the claim. 2% deductible with a $200,000 home is a $4000 deductible. Rumor has it that State Farm will be going to actual cash value, not replacement cost on roofs soon. #likeagoodneighbor

Anonymous said...

may 20 @7:13 challenged anyone in the insurance industry to rebut his comment. so far no takers. what does that tell you?
tells me that 7:13 is right.

Anonymous said...

@10:23, hey 7:13.

"insurance rates only go up, they never come down."

-Thanks a lot inflation. I guess the house we insured in 1985 for $75,000 should be cheaper than the same house that's $175,000 today because its older. Or the Cars that have jumped ffrom $15-20k to $50-60k with all the electronics and sensors.


"Thats because the entire insurance industry participates in price fixing since they are exempt for all federal regulation . they operate just like the five mob families of new york who routinely meet for a big sit-down in order to divide up territory and the rackets."

-Now how I can refute that seeing as I don't have the CEO's schedules to check to see when the meeting was. I ask that you or the poster prove it as well. Otherwise its just opinion. A bad opinion at that. I feel confidant all the CEO's don't meet at Mar A largo or whatever its called and smoke cigars and divvy up the market and set prices. But they do say ignorance is bliss.

"insurance companies do not compete for the benefit of the consumer, they all work together to keep insurance premiums as high as possible."

-Its a contract between you and a private company. They are there to make a profit. Most of the time a good profit is $.03 on the $1. Speaking of contract, you don't have to buy it. You can choose who you do business with or don't purchase if you don't like the terms.

Independent agent calling you and your buddy(assuming you're not the same person) ignorant.

Anonymous said...

I agree with 12:22, I'm an agent and if you don't want to pay for insurance just self insure and run the risk. The difference in now and 30 years ago is that people demand and want everything to be covered and that runs the cost up. I guarantee you that State Farm either sent you a letter, or it was stamped on the front that you now have a 1% deductible. Think about it, your premium is $2,000 for a house that is $500,000, contents $350,000 (70% of bld.) and loss of use $150,000 (30% of bld.). Your house burns $850,000 is paid on bld. and contents and then another $60,000 for loss of use, misc. other expenses $50,000 so $960,000 is paid. If I were you I would just not insure it and pay it out of pocket.

Anonymous said...

wow, 12:22 is some kind of talker. maybe he would like to rebut the facts laid out by may 20 at 12;56.

Anonymous said...

to 12:22 insurance company CEOs dont write down on their schedules their appointments for the sit downs in order to fix prices.

Anonymous said...

goggle the McCARRAN- FURGUSON ACT, a federal statue , passed by the congress back in the 1960s, which totally exempts the insurance industry for all anti trust, collusion , and price fixing practices. thats why the federal government has no department of insurance. its been turned over to the states to regulate. the problem is that 99% of state insurance commissions , mississippi included, dont have the power to regulate so much as a one car funeral. mr 12:22 doesn't want you to know about this.

Anonymous said...

"I have USAA auto insurance and they gave a 20% credit for 3 months as of May. "

Same here. My whole extended family (10 of us) trust USAA.

Anonymous said...

10:59 Have you checked you USAA house insurance deductible for wind and hail? Friend of mines son found out with a $2,300 deductible after the Madison storm. It may only be on new business but it's changing.

Anonymous said...

Mad at the world @9:36, 6:46, 6:57, 10:23, & 7:13

Please tell me, in your professional opinion, why insurance companies should be federally regulated versus governed by the states? It doesn't totally exempt them from anti trust, collusion, or price fixing. If that is to be found, then they would be subject to all of the above as well as wire fraud, etc. It basically says the states can regulate it up to the point the federal government needs to.

"The McCarran-Ferguson Act does not prevent the federal government from regulating the insurance industry. It provides only that states have broad authority to regulate the insurance industry unless the federal government enacts legislation specifically intended to regulate insurance and to displace state law. The McCarran-Ferguson Act also provides that the sherman anti-trust act of 1890, 15 U.S.C.A. § 1 et seq., the clayton act of 1914, 15 U.S.C.A. § 12 et seq., and the Federal Trade Commission Act of 1914, 15 U.S.C.A. §§ 41–51, apply to the business of insurance to the extent that such business is not regulated by state law."

Courts have distinguished between the general regulatory exemption of the McCarran-Ferguson Act and the separate exemption provided for the Sherman Act, which is the federal Antitrust Law. Cases involving the applicability of the Sherman Act to state-regulated insurance practices take a narrower approach to the phrase "business of insurance" and apply the three criteria set forth in the Pireno case. In other cases that do not involve the federal antitrust exemption of the McCarran-Ferguson Act, the Supreme Court takes a broader approach. It has thus defined laws enacted for the purpose of regulating the business of insurance to include laws "aimed at protecting or regulating the performance of an insurance contract" (Fabe). Insurance activities that fall within this broader definition of the business of insurance include those that involve the relationship between insurer and insured, the type of policies issued, and the policies' reliability, interpretation, and enforcement (Securities & Exchange Commission v. National Securities, 393 U.S. 453, 89 S. Ct. 564, 21 L. Ed. 2d 668 [1969]).

The insurance world isn't as rogue as your opinion makes it to be #check

Anonymous said...

to 12:03...................gee whiz!!!........golly gee!!!!!!! you must be a real insurance bad ass. are you chief corporate councel of state farm or allstate?
since you got all those beefy answers, strap this one on................back in the early 2000s when you're precious insurance industry bought and paid for the mississippi legislature, so that they could enact sweeping tort reform measures, thus gutting the civil justice system, the ''reward'' for consumers was supposed to be lower insurance rates.
tell me mr bigshot, how much have your insurance rates declined ?

Anonymous said...

@2:50, probably about as much as our DMV cares about it being mandatory that you have auto insurance to drive. And the answer is called excessive punitive damages. Why should someone be able to scream my neck and back to collect hundreds of thousands of dollars when they were hit from the rear at less than 10mph. Also tort reform legislation hinged largely from medical malpractice lawsuits, not P&C insurance claims. Why do you keep asking more & different questions as you are proven wrong by my answers to your original set of questions?

Also, its "your" not "you're".

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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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