New CA mileage law made my rates go up, but I don't drive much.

[waveform]

This is crazy. I have State Farm Southern California. Last year I was submitting my mileage and getting a discount. My latest bill however is $260 more then my last bill for (for 6 month payments). My sister's went up $700 also. State Farm said they scraped their mileage program because the state of CA has now implemented a new state mileage tracking program that was passed into law. But I have not submitted my mileage to them in over a half a year and I rarely go anywhere in my car anymore. I've been staying home on the weekends studying, I don't have many friends here, I just go to work which is only 20 mins away and to my parents on the weekends sometimes, but they live on the way home to my place.

State Farm said it went up based on my mileage driven. I don't know where State Farm is getting their data. They keep telling me, "they don't know why my mileage went up, that it's generated by the system"

I don't know what state law this so called mileage program is from, can't find anything on google, but if it's true, it's not fair to all the people who have to work far away from home. Not only are consumers in CA getting nailed on California's extremely high gas prices, but now they're going to get screwed on their insurance rates if they have to drive far while people who work close to home are getting discounts. State Farm and All State are the first company's to implement this new mileage program according to the agent I spoke with. I've been with State Farm since I was 16 years old, I'm 45 now.

 

[fed up]

Most insurers take a stated base rate, say 8000 to 10,000 per year and base their premium on the statistical average number of accidents which occur within that mileage. The new Mile programs charge a daily base rate (a dollar or so per day), a mileage use rate (a dollar or so per mile used) and I have seen premiums cut drastically. However, if you exceed YOUR stated use the premium will jump. Even on a regular policy if you state you only drive 4000 miles per year ( a short rate) you could lose that rate if you can't provide records to show that the vehicle isn't used much. Monthly oil changes with mileage are a good way to prove use. Just saying that you don't drive much is not enough proof. So if you short rated your use and can't back up the information you have probably been re-rated by State Farm.

 

[DI Guy]

Holy Cow! I have a 40 mile commute!
Soo. Move and take a drastic hit on my quality of life or stay where I live and eat cat food.
Does Sacramento understand that they can't function without a middle class?
My low-cost option is rapidly becoming "move to a different state".
Jeez!

 

[fed up]

Holy Cow! I have a 40 mile commute!
Soo. Move and take a drastic hit on my quality of life or stay where I live and eat cat food.
Does Sacramento understand that they can't function without a middle class?
My low-cost option is rapidly becoming "move to a different state".
Jeez!

40 miles each way? adds up to over 20,000 per year and I am willing to bet that your policy is rated at 12,000 which was the old way to do insurance. With the use of public transportation and Uber companies and consumers are finding ways to lower the cost on a vehicle which is not used daily or used for a 5 mile commute

 

[DI Guy]

We checked on public transport when we moved. It would be four or five transfers and take several hours.
Whether they use the current underwriting rules or miles, they are making bank on me since I have less than $2K claims in the past 10 years.
They aren't losing money, they're annoyed that we get to keep some.

 

[LostDollar]

Most insurers take a stated base rate, say 8000 to 10,000 per year and base their premium on the statistical average number of accidents which occur within that mileage. The new Mile programs charge a daily base rate (a dollar or so per day), a mileage use rate (a dollar or so per mile used) and I have seen premiums cut drastically. However, if you exceed YOUR stated use the premium will jump. Even on a regular policy if you state you only drive 4000 miles per year ( a short rate) you could lose that rate if you can't provide records to show that the vehicle isn't used much. Monthly oil changes with mileage are a good way to prove use. Just saying that you don't drive much is not enough proof. So if you short rated your use and can't back up the information you have probably been re-rated by State Farm.

Safeco sends me postcards each year for two of my vehicles, requesting odometer readings. I knew they had a low mileage rate on one, but I suppose the postcard means they have it on two.

Don't know what will happen if I have a spurt on one vehicle and go over whatever "the number" is. I've been a little concerned, but so far they have never asked me for an "external" verification of the readings I've sent in (I'm not fudging on them).

 

[Tahoe Ray]

Holy Cow! I have a 40 mile commute!
Soo. Move and take a drastic hit on my quality of life or stay where I live and eat cat food.
Does Sacramento understand that they can't function without a middle class?
My low-cost option is rapidly becoming "move to a different state".
Jeez!

40 mile commute FROM Sac? Where do you work, Placerville?

 

[DI Guy]

Nope! Oceanside to San Diego in Southern California.
(Placerville looks like it has better gas prices, though)

 

[Tahoe Ray]

Nope! Oceanside to San Diego in Southern California.
(Placerville looks like it has better gas prices, though)

Ahhh...you were referencing Sac as the capital.

That has to be a crazy amount of time in the car with traffic.

 

[DI Guy]

In the morning about 35-45 minutes, in the afternoon from 1 to 1.75 hours depending on what's happening at the Del Mar Fairgrounds.
Right now it's the County Fair, so yeah the evening traffic is pretty impressive.