Man talking(l+r), State farm sign(c)

Ken Wolter/Shutterstock @kyinsurance/Tiktok (Licensed)

‘My insurance has almost doubled’: Expert issues warning about new change to State Farm

‘What do we do about it bro? I’ve heard other insurers are doing the same.’

 

Phil West

Trending

An insurance agent comparing rates from competing companies is hearing from a number of State Farm customers claiming that their rates are going up and expressing concern.

The video comes from Lexington, Kentucky-based creator Kenneth Turner (@kyinsurance), who uses his TikTok account to conduct conversations about home, auto, and renters’ insurance. In this particular selection, which drew more than 800,000 views since going up on May 9, Turner is responding to a commenter on another video claiming to be a 38-year customer of State Farm experiencing rate hikes.

“This is very concerning for State Farm customers in 2024,” Turner said before sharing the comment from the longtime customer, who says they made no claims in that time.

“I don’t even know what to say at this point,” Turner said. “Why is State Farm doing so people? Has anyone else experienced this? This is my third video consecutively just sitting here scrolling through my comments and finding this stuff.”

Turner noted that a few minutes prior to making that video, he happened upon a commenter who claimed that “she went from paying, I think it was like $90, and then it rose up to over $200.”

He solicited comments from other State Farm customers trying to confirm this alleged trend, saying he was experiencing “a loss of words” over the situation.

However, some commenters indicated this is more than just a State Farm issue.

“Yes! All car insurances have gone up in 2024,” one insisted.

Another shared, “We have Geico and our insurance has more than tripled. We’ve only made one claim in over 18 years. we have paid in over $41k and only 1 $3k claim.”

“What do we do about it bro?” another wondered. “I’ve heard other insurers are doing the same.”

@kyinsurance Replying to @DC State Farm customer sees a DOUBLE in their rates. 100% rate increase! Watch out! #2024 #insurance ♬ original sound – Kenneth Turner

An Associated Press story from April says, “Auto insurance rates rose 2.6% in March and are up 22% from a year ago. Premium costs have been marching steadily higher since 2022, even as inflation at the consumer level steadily cooled from its 9.1% peak in the middle of that year.”

That’s in part due to advances in auto technology, with the article noting, “Higher value for cars, along with more advanced technology and intricate parts, has raised the overall cost of repairs. Overall maintenance and repair costs jumped 8.2% in March from a year ago, according to the U.S. Bureau of Labor Statistics. That’s eased a bit over the last year. The rate of increase was as high as 14.2% in early 2023.”

And State Farm, according to MarketWatch, is actually one of the more affordable insurance companies out there. That article, published in April, claims, “Full-coverage car insurance from State Farm averages $1,647 per year or $138 per month, which is 21% cheaper than the national average.”

While Turner advised customers to price shop to get the best deal, acknowledging that rate hikes are an industrywide trend, he also suggested that if you’ve been with a company for a few years and have only seen a slight rate increase, it might be best to stick with that insurer.

“Let’s say, for example, that you switch to a new company, and then within three months, you file a total loss claim, and they pay out $25,000,” he told the Daily Dot. “They’re going to deem you as a very high risk, and they may non-renew you. So then, at that point, you only have six months with a prior insurance company [and] you have a fresh at-fault accident with a high claim payout. What’s going to happen is they may, they may non-renew you, and then you try to shop around and see what else is out there, and you’re gonna be flabbergasted.”

The Daily Dot has reached out to State Farm via email.

The internet is chaotic—but we’ll break it down for you in one daily email. Sign up for the Daily Dot’s web_crawlr newsletter here to get the best (and worst) of the internet straight into your inbox.

 
The Daily Dot