State Farm Agency - Guaranteed Renewal Policy

[NCSU INS GUY]

I am quoting an existing State Farm customer, that I know personally. I came back with a fairly significant savings for them, however they have a young driver in the household and a 15 year old in the household. The wife has been with State Farm since she was 16 and has a guaranteed no cancel policy (or guaranteed renewal policy).

I told them that I thought that the policy was only guaranteed not to be cancelled for the named insureds and that that was how I had seen it done in the past. She had a meeting with her State Farm agent today, who told her that that benefit would carry over to her children as well and that they would not be kicked off the policy under most circumstances.

My thought, was that they could still kick the young drivers off the policy without actually cancelling the policy and thus meeting the requirements of their promise.

Does anyone know if this is really the case?

For the record, the parents aren't worried about the no cancel feature for themselves, but for their young drivers.

 

[best14rates]

I am not sure that I am understanding you correctly, I know that here even if they have a guarantee renewal that is for the policy not the driver and that includes all that are on the policy but my confusion starts with are you trying to keep the kids on one policy and the parents on another? I have taken 100's of clients from statefarm because the rates were high with young drivers I the home in many cases half the price. I actually have a friend that is a state farm agent and when her rates are to high she send he clients to me and visa versa even thought I am a independent agent she is captive we send clients to one another all the time

 

[NCSU INS GUY]

No, I'm keeping the whole family together on my policy as well. Their concern is if one of their kids gets into bad accident and or a small accident and a ticket or something, they want to know that he can stay on their guaranteed non cancel state farm policy. Their state farm agent said that the kid would never be kicked off.

Which I don't think is true.

 

[Chevarian113]

Don't quote me on this, but from what I remember from my time with State Farm, the GRP would only stay on the policy that it originated on, not go to additional policies. If they cancelled a vehicle in the past, it may be added to a new vehicle if present on the old policy. If the named insured changes to the child, I believe they lose the GRP. Don't quote me on this, but fairly certain that was how it worked. Long story short, it's for the named insured, but can help when youthfuls have bad accidents and records under Mom and Dad's policy.

 

[Sales71]

I am quoting an existing State Farm customer, that I know personally. I came back with a fairly significant savings for them, however they have a young driver in the household and a 15 year old in the household. The wife has been with State Farm since she was 16 and has a guaranteed no cancel policy (or guaranteed renewal policy).

I told them that I thought that the policy was only guaranteed not to be cancelled for the named insureds and that that was how I had seen it done in the past. She had a meeting with her State Farm agent today, who told her that that benefit would carry over to her children as well and that they would not be kicked off the policy under most circumstances.

My thought, was that they could still kick the young drivers off the policy without actually cancelling the policy and thus meeting the requirements of their promise.

Does anyone know if this is really the case?

For the record, the parents aren't worried about the no cancel feature for themselves, but for their young drivers.

Good Luck since they are meeting with the state farm agent they will not buy from you. I think you need to leave this alone and move on....I would not spend that much time on it and move on.

 

[blue_wynd]

Is the non cancel guarantee even that viable? State Farm can always rate them so high after an accident or two that they will decide to change carrier on their own?

 

[NCSU INS GUY]

I'm $450 less. My auto policy offers first accident forgiveness. My homeowners product is an HE-7 (they currently have an HO-3).

Going to be a frustrating one to lose.....

 

[Chevarian113]

I'm $450 less. My auto policy offers first accident forgiveness. My homeowners product is an HE-7 (they currently have an HO-3).

Going to be a frustrating one to lose.....

To add a little fuel to the fire, SF doesn't use HO3 in my area... it's called HO-W... their own form, which is named perils both dwelling and personal property.

blue- that's right, Guaranteed Renewable doesn't mean they won't rate sky high and make them want to shop. Truth is SF doesn't do high risk well, so the price for a lot on the record won't be favorable. Some people are very loyal and pay that for the short time of youthful drivers and such, so it's hit or miss still.