Kramminn
Well-known member
I am sharing my story with you guys not only to educate but also make you aware of how some of these agents are doing business and making money.
I bought my GSXR back in Sept/14, I got a quote from my State Farm agent for 123/M and loved the rate so I took it. He later told me that I had to pay in full... I asked do you not do
month - month payment options on bikes? He said " Ahhh no, state farm wants to have a second policy in place for you to have that option", he explained the cheapest policy to tie to the bike would be
life insurance. So I said okay cool, I dont have life insurance right now and given the nature of the bike its probably a good idea. My rates just went from $123 - $173/M just to ride my bike.
Fast forward a little but... I work in the insurance business now so naturally I am learning more and more about the industry. I soon learned that it is not mandatory to have two policies set up with state farm to have a month-month payment option. I found this out from a co-worker of mine who use to work for state farm and looked at my policy and asked me why I got a term 5 life insurance policy- being uneducated at the time I told her I didnt really think about it and thats that the agent gave me and told me I had to have 2 polices with state farm to go month-month. She told me that was a crock of **** and they are scamming me and what they are doing is called Tied selling and it is illegal and that the policy for life I have is garbage to expensive and we can get a better plan within our office.
I called my agent and asked him if it was necessary to have that second policy, he said yes because State Farm wants two pieces of business to allow that payment option. I said to him okay find out and confirm just to be sure and I was going to make a call. I called SFPP - State Farm Head Office, I explained to woman on at HQ what was going on her reply was that this is not true and client of State Farm has that option and it is not required to have a second policy to have that payment option and emphasised that if my agent is doing that I need to report it because that is illegal, they do not condone that type of business, and they will shut that office down. I told her okay, not a problem, told her id get back to her.
I called back my agent, and asked him if he had a answer? Told me yeah he asked his boss and confirmed that I needed that second policy.... Are you sure? I asked?... yeah man Im sure...
Okay... AWESOME... Well Mr. Agent... I just got off the phone with Mr. HQ State Farm and asked them if this was true and she confirmed I do not need this "second policy" to have another another payment option and that what your doing is illegal... So I want you to cancel that second policy and refund me money back on the life insurance. Your lucky im not reporting you HQ and have your licence taken away and having your office shut down.
With all this said I am in the process of getting my money back, the life insurance policy is off and I am shopping for Whole Life insurance policy within my office at half the cost of what state farm was charging me on a Term 5.
I really hope this helps new riders and other experienced riders when shopping for insurance. That whole paying in full is a scam, the only way market that wants payment in full is Facility Associated. Even Intact, Pembridge- any one more offers month/month payment options.
unfortunately I can't transfer my account to another office but what I will do is when my policy expires I wont renew and will transfer my business to another office.
I bought my GSXR back in Sept/14, I got a quote from my State Farm agent for 123/M and loved the rate so I took it. He later told me that I had to pay in full... I asked do you not do
month - month payment options on bikes? He said " Ahhh no, state farm wants to have a second policy in place for you to have that option", he explained the cheapest policy to tie to the bike would be
life insurance. So I said okay cool, I dont have life insurance right now and given the nature of the bike its probably a good idea. My rates just went from $123 - $173/M just to ride my bike.
Fast forward a little but... I work in the insurance business now so naturally I am learning more and more about the industry. I soon learned that it is not mandatory to have two policies set up with state farm to have a month-month payment option. I found this out from a co-worker of mine who use to work for state farm and looked at my policy and asked me why I got a term 5 life insurance policy- being uneducated at the time I told her I didnt really think about it and thats that the agent gave me and told me I had to have 2 polices with state farm to go month-month. She told me that was a crock of **** and they are scamming me and what they are doing is called Tied selling and it is illegal and that the policy for life I have is garbage to expensive and we can get a better plan within our office.
I called my agent and asked him if it was necessary to have that second policy, he said yes because State Farm wants two pieces of business to allow that payment option. I said to him okay find out and confirm just to be sure and I was going to make a call. I called SFPP - State Farm Head Office, I explained to woman on at HQ what was going on her reply was that this is not true and client of State Farm has that option and it is not required to have a second policy to have that payment option and emphasised that if my agent is doing that I need to report it because that is illegal, they do not condone that type of business, and they will shut that office down. I told her okay, not a problem, told her id get back to her.
I called back my agent, and asked him if he had a answer? Told me yeah he asked his boss and confirmed that I needed that second policy.... Are you sure? I asked?... yeah man Im sure...
Okay... AWESOME... Well Mr. Agent... I just got off the phone with Mr. HQ State Farm and asked them if this was true and she confirmed I do not need this "second policy" to have another another payment option and that what your doing is illegal... So I want you to cancel that second policy and refund me money back on the life insurance. Your lucky im not reporting you HQ and have your licence taken away and having your office shut down.
With all this said I am in the process of getting my money back, the life insurance policy is off and I am shopping for Whole Life insurance policy within my office at half the cost of what state farm was charging me on a Term 5.
I really hope this helps new riders and other experienced riders when shopping for insurance. That whole paying in full is a scam, the only way market that wants payment in full is Facility Associated. Even Intact, Pembridge- any one more offers month/month payment options.
unfortunately I can't transfer my account to another office but what I will do is when my policy expires I wont renew and will transfer my business to another office.
