State Farm Slams Lexus, Raising Premiums

[Bulldog 1]

I'm not sure what forum subsection this should go in, but I just got a shocker in the mail today.
I recently called State Farm to complain about how high my premium was on my 2015 IS250 F Sport, and they dropped it by almost $200 per semi-annual payment because I changed my mileage from 12,000 miles per year to under 7.500 miles per year. Fair enough.
I got the renewal for my 2015 ES350, and it shot up to nearly $1,000 per 6 months. When I called my agent's office and got the Chief Excuse Officer du jour, they blamed it on: DGR has risen from a 23 to a 24. ?
When I challenged them on the fact that an ES350 is marketed to the senior market, safer and more experienced drivers who have considerably less impulses to street race or engage in dangerous driving behaviors, they response was, "Oh, not COLLISION! It's the COMPREHENSIVE!". Meaning, that the incidence of theft, vandalism, property damage etc has risen dramatically. In an ES350. Because all criminals prefer an ES350 as their getaway car in major felonies above other brands. : unamused:
Then they introduced age, neighborhood, other people crashing blah-blah-blah :zzz:
Having actually worked in the automotive industry, I danced around with this Excuse-O-Matic for the duration of my preciously short lunch break and changing principal drivers, dumping the car outright in favor of another make and model, whatever led to no cheaper premiums. Savings of less than $100 per 6 months. Why bother?
I then came home and utilized THEIR own State Farm Vehicle Insurance Ratings website to research just what is so bad about Lexus, them with their 10 airbags and 5-Star safety ratings.
Lo and behold, they did dump a poor score of "D" on the ES350. Across the board, most of the Lexus models received D and E ratings, which equate to higher than standard premiums and much higher than standard premiums, respectively. For perspective, State Farm rates a Chevorolet Corvette Stingray an A in all categories, meaning significantly less than standard premiums. Dizzy yet? See for yourself here: https://learningcenter.statefarm.com/auto/vehicle-rating.html Choose "Lexus" from the drop down menu.
So, now I have to go insurance shopping for a better premium, if I can. The insurmountable factor in all of this is that we live in the insurance fraud capital of the United States, South Florida. Per capita, we have the highest incident of auto fraud, fraudulent medical claims, uninsured motorists, higher than average automobile theft etc.
I traded emails with my VIP Sales Manager at my dealership, which happens to be the number one volume Lexus dealer in the country, and he says I am not the first to report to this to him, though there's nothing they as a dealer can do.
This doesn't bode well for State Farm customer purchasing Lexus moving forward, but I need to somehow negotiate a much lower premium for my second car or it's gone. Cheaper than your beater car payments are amazing and I am so thankful to my VIP Sales Manager for always taking care of me, but if the stigma causing the insane premiums is driving a Lexus, something has to give somewhere.
Has anyone else around the country recently seen your insurance premiums go up suddenly on your Lexus sedan? So disappointed, right now.

 

[Tragic Bronson]

Ask them to "discount double check" the rate again

 

[mikeavelli]

I'm not sure what forum subsection this should go in, but I just got a shocker in the mail today.
I recently called State Farm to complain about how high my premium was on my 2015 IS250 F Sport, and they dropped it by almost $200 per semi-annual payment because I changed my mileage from 12,000 miles per year to under 7.500 miles per year. Fair enough.
I got the renewal for my 2015 ES350, and it shot up to nearly $1,000 per 6 months. When I called my agent's office and got the Chief Excuse Officer du jour, they blamed it on: DGR has risen from a 23 to a 24. ?
When I challenged them on the fact that an ES350 is marketed to the senior market, safer and more experienced drivers who have considerably less impulses to street race or engage in dangerous driving behaviors, they response was, "Oh, not COLLISION! It's the COMPREHENSIVE!". Meaning, that the incidence of theft, vandalism, property damage etc has risen dramatically. In an ES350. Because all criminals prefer an ES350 as their getaway car in major felonies above other brands. : unamused:
Then they introduced age, neighborhood, other people crashing blah-blah-blah :zzz:
Having actually worked in the automotive industry, I danced around with this Excuse-O-Matic for the duration of my preciously short lunch break and changing principal drivers, dumping the car outright in favor of another make and model, whatever led to no cheaper premiums. Savings of less than $100 per 6 months. Why bother?
I then came home and utilized THEIR own State Farm Vehicle Insurance Ratings website to research just what is so bad about Lexus, them with their 10 airbags and 5-Star safety ratings.
Lo and behold, they did dump a poor score of "D" on the ES350. Across the board, most of the Lexus models received D and E ratings, which equate to higher than standard premiums and much higher than standard premiums, respectively. For perspective, State Farm rates a Chevorolet Corvette Stingray an A in all categories, meaning significantly less than standard premiums. Dizzy yet? See for yourself here: https://learningcenter.statefarm.com/auto/vehicle-rating.html Choose "Lexus" from the drop down menu.
So, now I have to go insurance shopping for a better premium, if I can. The insurmountable factor in all of this is that we live in the insurance fraud capital of the United States, South Florida. Per capita, we have the highest incident of auto fraud, fraudulent medical claims, uninsured motorists, higher than average automobile theft etc.
I traded emails with my VIP Sales Manager at my dealership, which happens to be the number one volume Lexus dealer in the country, and he says I am not the first to report to this to him, though there's nothing they as a dealer can do.
This doesn't bode well for State Farm customer purchasing Lexus moving forward, but I need to somehow negotiate a much lower premium for my second car or it's gone. Cheaper than your beater car payments are amazing and I am so thankful to my VIP Sales Manager for always taking care of me, but if the stigma causing the insane premiums is driving a Lexus, something has to give somewhere.
Has anyone else around the country recently seen your insurance premiums go up suddenly on your Lexus sedan? So disappointed, right now.

This is a good read, we use state farm as well and swear every month our premiums go up with no incidents. We've been pretty loyal but have considered shopping around. From my understanding another issue is Florida is the worst state for auto insurance so premiums are higher here in general. Blame it on laws that don't protect people like us and some of the worst drivers on the planet.

Going to research this more, thanks for the thread!

 

[Bulldog 1]

Ask them to "discount double check" the rate again

Their only response is to start dropping coverage and start raising deductibles.
They sound exactly like Xfinity cable.
The changes are paltry. Save $50, $60, $70. I need to save hundreds. This is going to be a scramble to find something else before the premium is due. Mike is correct. We get shafted by all forms of insurance because we SHUDDER live in Miami-Dade County, THE most expensive and most fraudulent county in Florida, and on some cases, the country.
Excuse my French, but this "shared risk" $hit is effed up.
Why should I pay more to prop up everyone else? I have NO accidents, tickets, claims so I should have THE cheapest insurance possible.
It is noteworthy that my family has been insured by State Farm continously for over 80 years with as many as four cars at one time in the past, life insurance and formerly homeowners insurance.
But after the epic 2005 hurricane season that slammed Florida from all sides repeatedly, State Farm dropped us among 250,000 policies.
State Farm don't give a f***. But my neighbor next door, who happens to be family through marriage, was robbed, got a new roof, and after all that payout, are still insured by State Farm. Yet....her auto insurance has always been Geico.
We pleaded with State Farm president Edward B. Rust when we were dropped, and it made no difference. We are with the state run Citizens homeowners, a choice of last resort, which TRIPLED our premiums.
We are literally drowning in insurance related debt, and have become that struggling middle class being so carelessly tossed around by presidential candidates.
So why drive a pair of Lexus if we're so cash strapped? No other car maker offers us the deal they do. I haven't bought a car since 2001. All leases. Low or no money down. Our cars go back to Lexus with less than 5000 miles per year average and in nearly showroom condition. What I pay to Lexus for my leases most people pay monthly higher payments to drive junk.
Yes, I'm passionately angry about all of this because this is part of a systemic problem that is wholly allowed by our multi-millionaire Republican governor who always sides with the insurance companies because he was the CEO of one who bailed just prior to criminal charges and multi-million dollar fines against his former employer.
This really hurts, and there is just so little I can do as a citizen consumer. Brief research into alternatives are over a $1,000 higher than State Farm thus far.

 

[Ruksac]

Check your limits of liability too. Lexus and the state of Florida no longer require 100/300/50 limits of liability. You can drop to as low as 10/20/10 if you're comfortable with it. That should put a dent in your premium but it impacts your coverage. Perhaps finding some middle ground might be the best for you.

 

[IS-SV]

I know every state is different, so my input is largely based on decades in CA:

First thing is always raise deductibles as high as legal. In CA having homeowners insurance with car insurance with same company helps significantly too.

I always go with $1000 deductibles and maximum available liability limits. I have an excellent insurance agent/broker to do the cross-shopping for me in CA, currently with Safeco (dumped CSAA and Farmers few years ago). High deductibles, very good driving record with no accidents, cars garaged at home, marital status and age contribute to affordable rates for me.

 

[Bulldog 1]

Check your limits of liability too. Lexus and the state of Florida no longer require 100/300/50 limits of liability. You can drop to as low as 10/20/10 if you're comfortable with it. That should put a dent in your premium but it impacts your coverage. Perhaps finding some middle ground might be the best for you.

Was not aware of that. When leasing, limits have always been 100/300. I'll look into that option.

 

[Ruksac]

Was not aware of that. When leasing, limits have always been 100/300. I'll look into that option.

It's pretty new for Lexus. My State Farm coverage has crept up there over the past year. Here at Pembroke Pines, we use that as one of the closing tools.

 

[IS-SV]

It's pretty new for Lexus. My State Farm coverage has crept up there over the past year. Here at Pembroke Pines, we use that as one of the closing tools.

Yieechhs, IMO that's a really unfortunate "closing tool", (advising Lexus customers to opt for minimal liability coverage).

 

[Ruksac]

Yieechhs, IMO that's a really unfortunate "closing tool", (advising Lexus customers to opt for minimal liability coverage).

Let me be perfectly clear, I don't advise on insurance. I'm not a certified insurance rep, but I do keep my customers fully aware of all the options available to them. Here in South Florida, insurance can be crazy high and customers are more payment conscious then ever, so giving them all the options only behooves a salesperson. Besides, we get a lot of snowbirds that are only here for 3-4 months, but leasing a car makes more sense then renting one and then they have the option of alternating their limits for the months they're here versus the ones they're not.

 

[IS-SV]

Let me be perfectly clear, I don't advise on insurance. I'm not a certified insurance rep, but I do keep my customers fully aware of all the options available to them. Here in South Florida, insurance can be crazy high and customers are more payment conscious then ever, so giving them all the options only behooves a salesperson. Besides, we get a lot of snowbirds that are only here for 3-4 months, but leasing a car makes more sense then renting one and then they have the option of alternating their limits for the months they're here versus the ones they're not.

Like I said in response to "Here at Pembroke Pines, we use that as one of the closing tools", that's very unfortunate and hardly an appropriate closing tool. I didn't make up that statement, it's in post #8 regarding liability limits. And let me be perfectly clear as to what I think of somebody at car dealership giving lowering insurance liability limit advice (or tax advice or retirement planning advice for that matter, lol).

 

[spwolf]

Lo and behold, they did dump a poor score of "D" on the ES350. Across the board, most of the Lexus models received D and E ratings, which equate to higher than standard premiums and much higher than standard premiums, respectively. For perspective, State Farm rates a Chevorolet Corvette Stingray an A in all categories, meaning significantly less than standard premiums. Dizzy yet? See for yourself here: https://learningcenter.statefarm.com/auto/vehicle-rating.html

I am sure you checked BMW, Audi and MB and know they get similar ratings as Lexus. So hows State Farm slamming Lexus exactly? What a title.

Looking over the website, you would be much better off with Acura or Infinity or most of Toyota's and Honda's. As to Chevy, interesting that Volt gets E rating but so does Camaro as well.

 

[Ruksac]

Like I said in response to "Here at Pembroke Pines, we use that as one of the closing tools", that's very unfortunate and hardly an appropriate closing tool. I didn't make up that statement, it's in post #8 regarding liability limits. And let me be perfectly clear as to what I think of somebody at car dealership giving lowering insurance liability limit advice (or tax advice or retirement planning advice for that matter, lol).

I don't want to get off on the wrong foot here, but how exactly are you qualified to determine what an appropriate closing tool is exactly? Whether you're selling Lexus, real estate or whatever else, it's a salesperson's responsibility to inform their customers of all pertinent information. Perhaps you've done business with less informative salespeople? I know my real estate broker talks to me about various types of insurances. Even the guys at the electronics stores talk to you about their extended warranties which are also insurance policies. Again, I don't suggest the customer take any type of insurance. I myself carry the 100/300/50 and I tell my customers that. But I didn't pass the laws, and Lexus wouldn't have altered their required limits of liability and not intend on their salespeople to inform their customers.

 

[IS-SV]

^ That's a different response to a different statement than post #8. And what you said in this last post is certainly valid.

Agreed I don't want to get off on the wrong foot or off topic here spelling out my credentials, etc.

 

[mmcartalk]

Give GEICO a call (1-800-841-3000) and see what they will do for you. They are noted for low rates. I've been with them for almost 35 years and have not been disappointed. Of course, though, I've never had experience with them in south Florida.

 

[Riyad Babar]

I had state farm, and when I switched to Esurance, it was about 500 bucks cheaper per year and has only gone down over time. When I first switched I sne the quote to State Farm to see if they could match it, and they said "If that's real, take it"

Never looked back. Quoting above, bundling and discounts through workplace can do wonders too, specially if the company you work for uses a group discount for employees.

 

[Bulldog 1]

I appreciate the helpful, respectful replies. I need to research every possible option. State Farm certainly showed my family absolutely no respect when they dropped our homeowners insurance.

 

[Bulldog 1]

I just took the time to go through the entire State Farm Vehicle Insurance Ratings tables and the only two CARS they award "A" grades to are the Acura TLX and the Chevrolet Corvette Stingray 2D. Drug use must be rampant in State Farm underwriter's offices.