State Farm insurance 2023
Insurance consumer and today we’re talking about State Farms specifically yeah and there are a lot of consumers who consume State Farm Insurance yeah I mean they’re one of the biggest rights yeah they’re the biggest okay they insured I don’t know something like one in every eight households something like that um and so a lot of people have State Farm Insurance you bet so let’s talk about what’s going to be happening with State farmer maybe what has already happened by the time you’re watching this video right.
What does renters insurance cover state farm
I’m guessing there’s a lot of people who searched us up angrily to find the answer to this question so yeah let’s talk to them now to be totally fair this is not a state farm exclusive problem right but we know some of the numbers and we want to point them out to you to help you understand why exactly you have that big sticker shock why you just had to pick your jaw up off the floor when you saw your renewal come through from State Farm and why their agent probably didn’t call you talk about it because there’s nothing they can do about it so we don’t know everything about State Farm.
How to cancel state farm insurance?
But we do go to Insurance conferences and eat the mediocre breakfast and lunch and listen to the inane questions from other insurance agents just so we can come back here and help you understand better what’s happening in this wider world of ours so I think we first have to define a couple of things so that we can help people understand this so we’re going to be talking about two factors today these are just two but they’re two pretty big ones okay so the first is growth and how are we defining growth here growth is going to be the premium growth and the policy holder growth the amount of insurance that they have in their books yeah between policies and force and the premium growth really that’s what we’re looking at in terms of growth and the other factor is what loss ratio carriers call it.
How much is state farm auto insurance?
Combined ratio because that combines the natural disasters that all sounds like Insurance jargon to me what is the loss ratio well yeah so it’s I mean it’s the loss ratio and they call it combined ratio but it’s it’s how much you pay out versus how much you bring in okay so we’re talking about for every dollar they pay out this much how much is going out okay all right every one dollar of Revenue you bring in how much are you having to pay out exclusively for losses we’re not even talking about operating expenses here right this is purely a loss figure okay so State Farm is this what’s what are they they got to be what fifty percent loss ratio well like I said State Farm is leading the pack okay not only in terms of company size but also unfortunately in terms of loss ratio and in terms of growth okay so we’re sitting here in the fourth quarter of 2022 right.
How do i pay my state farm insurance online?
Before the recession hit yeah so we got some numbers uh that were coming out from the beginning part of the year at the end of the second quarter of 2022. okay they had moved from a combined ratio of around 120 121 okay all the way up to 130. so to roughly 113 translate that that means for every dollar they brought in they paid out one dollar and thirty cents in clamps yes before they paid any salaries did any marketing did State Farm do any marketing this year actually as we roll into this last quarter not as much as they used to yeah they’re slowing that down yeah I mean I don’t think you’ll see their ads in the Super Bowl this year that’s for sure so you know so they’re losing a dollar Thirty for every dollar they bring in that seems like a really bad business model call me crazy.
But I think that wouldn’t be sustainable it does get worse it does it okay well do share well because in addition to paying out a dollar Thirty for every dollar they’re bringing in they’re also growing at eight percent right now so they’re bringing more dollars in you multiply that 30 Cent loss by eight they’re losing a bunch of money you bet so what are they gonna do about it I mean I suspect that as I think you’ve searched this up because they raised your rates if they haven’t and you’re watching this to the moment in the last quarter I’d begin shopping and preparing yourself for finding a different company because that’s what’s gonna have to happen they’re going to have to bring those rates up because you know this is this pre-recession time is a weird time because money’s still being spent people are out there having a good time.
What time does state farm insurance open?
They’re living life that’s the other thing we learned from this conference is the more money people have the more claims they’re gonna make it was really weird they showed us this chart and line graph everything and uh at the moments that we got our stimulus checks as a as a country right that is when claims Spike gonna go out and have a good time we’re gonna wreck that car and so you know the insurance companies this is not sustainable State Farm is going to change you know we’re seeing some wild things happen that we’ve not seen before.
State farm renters insurance
Another email from one of the carriers that we’ve written business with for a while and they’ve pumped the brakes and said everything that comes through their rating system has to go through underwriting and that was a few weeks ago we got that right communication and then just today we got a communication that said hey by the way it’s going to take us about two weeks to process all of these uh things that you want us to underwrite so in the meantime if is going to take more than 14 days and that’s not going to work for you you might want to consider other options I think the better way to say it is thanks but no thanks and that’s where things are right now and the State Farm is going to have to get there this just isn’t sustainable I don’t care how much banking they do I don’t care how much life insurance they sell paying at a buck 30 for every dollar they bring in is just not going to work so if you call your State Farm agent about your rate increase okay what are your options that your State Farm agent is going to have for you we can remove coverage yeah that’s pretty much it.
State farm car insurance
You know if you watch any of our other videos we know that there are ways to to mitigate what it costs for insurance but one of the ways is to really work with a good independent agent have that agent help shop you it’s it’s really important that you get away from that captive mindset because they’re not going to be able to sustain this now you might be watching this video because you’ve been with State Farm for a long time and you’re curious what’s going on you might be one of those State Farm clients who has one of the oh so coveted no cancellation guarantee maybe a certificate that’s suitable for framing it was mailed to you at one point in time good news for you.
State farm mutual insurance co
State Farm is probably not going to be able to just outright cancel your policy they are going to raise rates like you wouldn’t believe quickly I know that a lot of companies have also that used to offer 12-month Auto policies are are only now offering six months because that allows them to rewrite they’re changing payment plans requiring more for the first payment you bet um yeah certainly State Farm’s been on six months so they’re not going to be shorter than that that’s for sure.
State farm auto insurance
But they will just do the same things every other insurance company is doing they’ll try and limit how much new business is coming in until they get their rates right they will try and shed some of the business that might be predictably bad right people with high Insurance accidents in the recent past and they’re going to do that by taking giant rate increases for them if you don’t fit just right it’s going to be harder and harder to get insurance with a company whose name you know that’s just the truth of it for how long I don’t know you know I assume it will normalize we went through this once before and things got weird for a little bit but for now if you’re wondering why your State Farm Insurance went up so much or is headed that direction it’s because they are trying to play catch up with the market and that takes a big company like that huge leaps to fix this problem.
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