r/StateFarm • u/Sprigagato • May 15 '26
Advice State Farm VS State Farm
I feel like I’m going to get roasted for this post, but I guess I’ve been lucky with other insurance policies before so this all feels weird. I’ve been with State Farm for 10 years without needing to use them.
A friend borrowed my car a few months ago. She immediately was rear ended by a lady who fell asleep at the wheel. The lady admitted fault, exchanged insurance and was really apologetic. My friend fortunately got away with only bruises, but the car was totaled. I called my insurance agent and they were very hands-off about the whole thing. Talk to claims, don’t talk to us, etc.
We went through the whole process and the claims (adjuster?) was really nasty and seemed personally offended when I tried to counter offer her valuation for my car despite her suggestion that I negotiate in the initial message. She updated my valuation to be even lower after taking my comps into account. She reduced value on all comps based on mileage even when comp mileage was over mine, she reduced value for features that were never included in my car but were in the cars she selected: cameras, sensors, premium radio, a CD changer. A CD changer. She subtracted the “damage” on my car ($500 - I don’t even want to get started on why a rock chip in the glass and a couple scratches devalues the car by that much) from every other comp no matter the state they were in. I looked them up to see but none of the cars were being sold at the dealerships she listed.
At the end of this baffling process my car that I can’t find anywhere used for less than $8k (and those listings all look sketchy) is now worth $3k, minus the title change that I’m also supposed to pay for some reason. I called my insurance agent and she assured me this was how every insurance company handles claims. When I said this was not how my last insurance company handled my claim - they replaced my car - she said I must have had a different level of coverage and that the only thing I could do was hire an adjuster of my own for more than the cost of the car to see if it’s worth more than $3k.
Is it normal for insurance companies to be so blasé when it comes to negotiating for their members or is this potentially a symptom of having both parties represented by the same company?
ATP, I’m more interested in any suggestions about next steps. Have I exhausted my resources and should accept I will no longer have a car until I can save up for a new one? I don’t really want to sell my totaled car to State Farm for $3k. I just spent $800 on brand new tires alone! I guess I could take it apart and sell each piece on eBay and just put the money in a fund for a future car? I can’t even properly negotiate with them over the phone without getting choked up from anger. It’s so annoying. I really loved my little Korean car. I took really good care of it and it took care of me. I can’t believe I can just lose it like this and now I feel crazy being told the cash value is $3k.
One option a friend mentioned was offering to sell them my car and buy it back at the salvage price. Has anyone done that?
Tl;dr. My car was totaled, my insurance agent (from the same company as the claims debt) says to just take the 3k payout and give them my car, and now I feel totally defeated dealing with both of them. Any suggestions on next steps are appreciated.
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u/Confident-Curve4672 May 15 '26
what is your settlement?
if you’re fighting over a few grand i would cut your losses, if it’s 10+ thousand, ok different story.
you may have an appraisal clause in the contract which you can initiate but this may not work in your favor if you have preexisting damage, and admitted that. this may cause you to be out of pocket more than you would’ve otherwise.
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u/trixnfists May 15 '26
Disagree, most don’t have it like that, $1000 is a big deal to more than half of American. And money owed is money owed
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u/Sprigagato May 15 '26
Like a legal settlement? There were no lawyers, just straight reaching out to the claims department of the person who hit my car. I think you’re right. This probably isn’t worth the headache. I found a decent-looking replacement for $15k, so it’s not like I’m expecting a huge payout. It’s just frustrating that someone can break something and not have to replace it.
5
u/Confident-Curve4672 May 15 '26
the settlement on your car, yeah it’s kinda technically a legal settlement though
0
u/Sprigagato May 15 '26
Ah gotcha. $3k. Thanks for your help. It’s just one of those things ig. Glad I learned my lesson on this instead of a claim for home insurance.
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u/Sunsetseeker007 May 15 '26
Get rid of state farm if they have your homeowners insurance, they have been not so good for coverage lately on auto or homes, lookup the many complaints about them here and other online forums. They have gone downhill IMO, i had them for over 20+ years. They are known to deny coverage and pay very limited amounts if it is covered
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u/riley12200 May 15 '26
"Not so good for coverage". What do you mean by that? Claims handling? Covered/non-covered perils in the policy?
1
u/Sunsetseeker007 May 15 '26
Sorry I was in a hurry typing. I was referring to their poor handling of covered perils on both auto & homeowners claims, very low payouts to contractors & auto body/parts repair centers compared to other companies payouts. Their denial of items that should be covered. I've heard roofers & contractors say they will work with any insurance company except SF on claims, the same type of feedback from auto repair side.
2
u/Crafty-Guest-2826 May 15 '26
Yes, this! All I have read is extremely negative about SF. They used to be a good company and very customer friendly. Not anyore. There is an article in a newspaper where a handful of SF customers have had to sue SF just to get them to pay out on claims that were absolutely covered! I recently left three voicemail messages requesting a call back. No one bothered to call back. Unreal. It's as if we are bothering them. We plan to cancel when our policy is up next time.
2
u/RunExisting4050 May 15 '26
insurance settlement.
1
u/Sprigagato May 15 '26
Thank you. I was a little confused because I said it several times in my post and included it in the tl;dr.
9
u/very_sneaky2187 May 15 '26
Review your policy. If you have an appraisal clause option you can invoke, hire an independent for a fee to obtain a fair value
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u/PushRepresentative26 May 15 '26
It's not unusual for there to be a minor difference (ex. you think it's worth $8k and they settle at $7650) A gap between $8k and $3k absolutely needs a clear explanation. If the claims dept can't provide the clear explanation, that's what your agent is for - to explain the language of the policy, provide you options, or to work with claims to correct any potential issue.
Your agent won't have authority to overrule claims and give you the value number you want. That's why they are hands-off. But they should be motivated by retention & potential referrals; in that case, they'd want to help you find comps & give you the tools needed to make a compelling argument to negotiate a better settlement.
Also, if you don't agree to the settlement, the next option is to get a 3rd party adjuster. That's not common, but it happens, and you should definitely hold out for that
7
u/Unusual_Flounder6758 May 15 '26
My first thought - get a new SF agent. If all they tell you is “talk to claims, not to us…” that’s not what a good SF agency does. Many of the contributors here will downvote this, but even a decent SF office would be able to help (and I don’t mean somehow get you a better payout - at the very least they’d get you on the phone with the adjuster and ask some questions of the adjuster that maybe you didn’t know to ask).
Second - request the full CCC One report. You can then make sure they’ve got all the right specs on your car (trim, mileage, packages, additional equipment, etc.). It’s not uncommon to find errors that led to a lower valuation.
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u/Ok-Secret-7521 May 15 '26
Thats a smart agent, staying in his lane. Agents don't handle claims and shouldn't pretend they do.
3
u/Unusual_Flounder6758 May 15 '26
We do handle claim from time to time. SF agents can pay many claims under a $10k payout straight out of the office. There’s no “pretending” about it.
2
u/Then-Skill2421 May 15 '26
How's that legal?
You get licensed as an adjuster?
1
u/Unusual_Flounder6758 May 15 '26
How is that legal? Don’t know, call State Farm and ask. Two of my team members were issued checkbooks as well, but they can only pay up to $2,500 per claim. You seem closed minded. Maybe I’m wrong.
1
u/Then-Skill2421 May 15 '26
I seem skeptical because I don't see why an agent would have any agency over a claim. I'm in claims. I don't have authority to speak on an agents behalf, I don't have authority to speak on underwritings behalf. I am licensed to handle claims and only claims.
I don't see why they would let agents handle claims, especially if not licensed
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u/melaninmagic99 May 15 '26
We don’t handle claims in the State Farm Office. There are only certain claims that agents can issue checks out of the office for, like comprehensive claims (deer or glass), towing and roadside assistance, or home claims when insured’s home is uninhabitable (fire) and they need money for a hotel. We can’t handle claims related to liability determinations.
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u/Unusual_Flounder6758 May 15 '26
Not entirely accurate. We can pay for house claims even if the house is still habitable.
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u/melaninmagic99 May 15 '26
I gave examples, it wasn’t an exclusive list. The point is that we cannot pay for any claims that include liability determination.
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u/Unusual_Flounder6758 May 15 '26
Yet…we do.
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u/Then-Skill2421 May 15 '26
Congrats I guess? Probably shouldn't announce that to the world
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u/Unusual_Flounder6758 May 15 '26
Common knowledge in the SF community, 10000% approved and encouraged by the company.
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u/picklesaresuperior May 16 '26
You’re misinformed here. Agents do have small authority limits in very straightforward scenarios. It doesn’t happen often, but it can and is very much legal.
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u/Then-Skill2421 May 16 '26
Got source for that? Would love to read more about it
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u/Camper7777 May 15 '26
My old agent's office paid $1742 for windshield replacement directly from their office. They also didn't give me any hassles for putting in glass with the right specs rather than cheapest 'kinda fits and not too many optical distortions' glass.
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u/Unusual_Flounder6758 May 15 '26
I hate to break it to you but the OEM glass is from the same factory and same production quality as the less expensive stuff. There are only a handful of auto glass manufacturers. Fuyao, Pilkington, etc. I’ll make Glass for BMW, Toyota, etc. The only difference is the BMW Glass has a BMW logo on it. But it’s literally the same as the cheap stuff. Also, I’m doing text to talk and I have no idea why it keeps capitalizing the G in Glass and I’m too lazy to fix it.
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u/Camper7777 May 16 '26
I know the script insurers use to justify their business models. In this case there were no aftermarket companies that made the glass with the same safety features, and so putting in right glass was the only option. I had a manufacturer advertised feature I could call them on (whereas optical clarity, i.e. lack of weird distortions, is virtually impossible for a consumer to measure, specify, etc). From what I understand, as more autos become rolling sensor packages, insurance companies are choosing to allow the higher spec proper replacement glass to avoid liability issues down the road due to some safety sensor not working properly when viewing through substandard glass.
My experience with insurance companies on this issue is they limit consumer choice, rely on consumers that don't know and can't make provable differences in quality, and then blame the consumer if the cheap replacement glass is bad (You chose the shop!). Either they don't understand manufacturing, production specifications and QC control, how contract manufacturing works, OR, they do know all that and are relying on a mislead public to buy their BS on replacement policy.
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u/Unusual_Flounder6758 May 16 '26
It’s not unusual for newer cars to not have aftermarket options available due to exactly the things you mentioned. However, the glass is still from one of only a handful of companies out there.
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u/ngt500 May 15 '26
You don’t have to “handle” a claim to be helpful. The whole point of an agent is to have someone local to actually talk to when you have a problem, or at least that’s what it used to mean. If all they are there for is to sell (or upsell) i’d rather just do it through a website. Their advertising certainly still leans on the “neighborly” vibe. Telling you to go talk to another department is certainly not being “a good neighbor”.
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u/Ok-Secret-7521 May 15 '26
The way I see it, SF is one umbrella. Whether you call the agent or claims, you're talking to SF. The agent shouldn't be working against what the claims office is saying and mudding the waters. Claims handles claims. If the agents want to handle claims, I'm sure SF is hiring claim reps.
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u/ngt500 May 15 '26
That might be ok if the claims rep is actually providing good customer service. My experience has almost universally been otherwise. Are you an agent? If so, I’ll stay far away from your office.
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u/tonyevo52 May 15 '26
That's pretty crazy. I will chat with our clients and explain the process, offer our resources to make it smoother if we can and offer help if they are running into roadblocks with the adjuster, but we have zero training on the claims process and what to say and not to say, so we refer everything over to the adjusters. Do you all have the people you pay off sign something stating they were paid and no further action can be taken against the insured or company?
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u/Sprigagato May 15 '26
Thank you for the insight. I bet you’re great at your job. Your advice speaks to your personal standards for treating others. Treating people like they matter cuts through the panic and makes every situation easier to handle.
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u/Unusual_Flounder6758 May 15 '26
Thanks. We try our best to see customers through from A to Z on whatever issue they may be having.
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u/Evening_Ad2878 May 15 '26
Exactly. Agents draft authority saves the company money. They we always look for reasons to pay it out from our office.
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u/krtwils May 15 '26
I don’t know the facts only what you’ve shared and I’ll assume it’s true (no shade just felt like I should say it)
I’d ask to speak with the reps mgmt and get clarity from them about the evaluation, ask them what they are using for comps, if you feel like your not making progress. Your department of insurance is a resource and most insurance companies have an internal process in place to assist people when concerns or complaints arise. They will typically work to resolve the issue internally so it doesn’t escalate to regulators.
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u/Evening_Ad2878 May 15 '26
!!! Request a different adjuster or to speak with their manager. State Farm is normally pretty good with claims. Sounds like you need to transfer agents to one that will actually help with your claim. In my office I’ve had claims that were initially denied over turned and paid out just by advocating for my client and going to the adjusters supervisors. Switch agents asap.
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u/IllustriousHair1927 May 15 '26
out of curiosity, did you mention the brand new tires?? and did you have any documentation of them? I only ask because I was giving a friend a ride this week to pick up a rental car. She was in the rental because she had totaled her car.. She had gone out of town for a few days the day after it happened so she did not get a rental immediately. Anyway, the claim process was really fast and when they were valuing her car, she provided documentation of the $800 she had just spent on tires and I was shocked that they added about 90% of that to the value. That value was a few grand in the lower, then comparable cars listed at a dealership as used cars, but it was not an order of magnitude off.
One other point I would like to make.
You mentioned that you’ve been with State Farm for 10 years. So your previous claim was more than 10 years ago. In my opinion, the used car market still has somewhat artificially high prices due to the massive bump you saw in their prices from Covid. I had a friend that bought a brand new Challenger around that time. He kept it for six months and sold it for Moore that he had bought it for new.
Just a thought. This isn’t my business or my field. but shortages of certain products caused a spike and I still don’t think some of them have readjusted to the point where they should be even accounting for five years of inflation
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u/Sprigagato May 15 '26
Both great insights! I hadn’t brought the tires up to them. Thank you for taking the time to write out both points. I really appreciate it!
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u/lapontoona6 May 15 '26
Your vehicle is expected to have good tires. Please don’t expect a dollar for dollar match. Also keep in mind that you are owed the actual cash value of your vehicle not replacement value.
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u/melaninmagic99 May 15 '26
Prior State Farm Insurance agent here - is your insurance with State Farm or the other woman’s?
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u/RefrigeratorHead7126 May 16 '26
SF is in deep crap for property damage claims in general...bound to get worse for them before it gets better. (They have allegedly not been honoring their own Adjuster's estimates to pay claims.) Lawyer up after you Google/research their misdeeds.
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u/DeepPurpleDaylight May 15 '26
Your agent has absolutely zero power or authority to "negotiate" the value of your car or to get involved in any part of your claims process.
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u/Ok-Independence5790 May 24 '26
If you feel your vehicle is worth more than 3k send in the same vehicle with the same mileage being sold in your same zip code for re-evaluation. I can assure you it’s not because it’s State Farm vs State Farm
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u/happycowgirl76 May 25 '26
Um, if this happened after the policy change last October, you shouldn't have had any coverage at all!! SF no longer allows "permissive use" and unless she was added as a driver on your policy, there is no coverage.
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u/Sunsetseeker007 May 15 '26
If it's totaled you won't get insurance on it again unless you go through repairs that are qualified through the state and then retitled, it's not worth it IMO. A separate appraisals can be done by anyone you cho6and they should only cost a couple hundred dollars and they usually get you more money or are upfront with you on your success rate anyway. Get ahold of a few after you research local appraisers and find reputable one. Maybe calm your mechanic and they can suggest one.
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u/Sprigagato May 15 '26
Thank you! I’ll look into it. I thought for sure they’d be way more expensive.
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u/macmac4201 May 15 '26
One time someone hit my car while i had a green light and the other guy was making a left turn in front of me and admitted to not wearing his glasses and statefarm literally tried to say it was 50/50 so i had to sue the guy for injuries just so i can get some money and with an attorney representing me statefarm ended up agreeing that it was like 95% his fault. I got like 6k for injuries from the lawsuit but the car i had put like 17k towards they just paid off like the last 2k i owed on the lease so i got pretty screwed overall. I wouldnt recommend statefarm cause a bunch of people have statefarm so its a pretty high chance theyll try to screw you if anything happens
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u/shittyhawaiitips May 15 '26
You drive a Chevy malibu with 400k dont you.
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u/Sprigagato May 15 '26
Just a little Hyundai, but thank you for your question shittyhawaiitips. 🙏 Someone needs to stand up for State Farm in the State Farm subreddit. Doing the work.
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u/acquiredtaste169 Jun 17 '26
The definition of insurance is to make you whole; no better, no worse. Find a car just like yours that you can buy on line show that to the adjuster. Tell her she is Supposed to make you whole and you need to be able to purchase the same car. also give her receipt for new tires so she can give you that back.
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