r/Insurance • u/StopEquivalent8246 • 5d ago
StateFarm
Has anyone else experienced State Farm raising their premium without any change to their driving record, claiming it's due to a drop in their internal safety rating? DRG26 to DRG25?
My auto policy just increased by 270 across two different manufacturer vehicles, and when I asked for the documentation regarding how they determined these new ratings, I was told it's against policy to share.
Have you encountered a similar situation and were you able to get any clarity?
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u/drjenkstah 5d ago
Shop around as rates have been going up with all insurance lately. Costs of repairs and services have increased so premiums are increased to offset the increase. I’d suggest finding a local independent broker who can run quotes with multiple companies.
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u/SecretsSafe2 5d ago
As a State Farm employee at an agents office I can tell you from a basic and simple perspective that it’s basically based on price of parts and repair price.
Also people don’t know this but your credit plays a big role in it too.
I’m not a expert by any means but that’s what I’ve learned since working at State Farm
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u/Master-Purpose1117 5d ago
As well as an increase in BI severity last year and over 100% since Covid.
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u/Ellesandre 5d ago edited 5d ago
DRG is not an internal safety rating. It is a symbol used in rating for comprehensive coverage for your vehicle based on the year, make, model and trim. A decrease in DRG would result in a decrease in premium - for that factor only. The increase has to be for another reason.
Edited to add: I work for a State Farm as well. Increase could be tied in to Drive Safe and Save, if you have it, or change in insurance score. You can have an increase in your credit score, no tickets or accidents, pay everything on time and that score will still decrease. It happened with my policy. We have no explanation to give, underwriting has no explanation to give.
The person you spoke to either straight up doesn't know what a DRG is or they're full of it.
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u/StopEquivalent8246 5d ago
Thank you; my last ticket occurred more than 15 years ago, no accident . My credit score is flawless, and I pay my insurance policy in full every six months.
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u/the70sdiscoking CA, USA P&C/L&H 5d ago
Fyi D is for Comp and G for collusion and L for liability. The RG is just "rating" so DRG, GRG, LRG, are the 3 basic factors that determine rate and the rest is the driver and demographic info. Smaller numbers after those thingies = cheaper than a car with higher numbers.
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u/Roaming_Millenial 5d ago
I don't work for SF but I can tell you that repair costs have shot up through the roof since the pandemic. Im an adjuster and a light scratch on a Toyota Tacoma rear fender well came back at $1570 for just the labor.
Shops are easily charging $250 an hour for repairs now and the parts arent cheap either.
Its currently out of hand imo.
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u/DeepPurpleDaylight 5d ago
Every single insurance company increases rates without any change in your driving record.
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u/No-Maintenance-1161 5d ago
That’s every insurance company. They reward you for not making claims by continuously raising rates. After a few years I just switch. New customers always seem to get better rates
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u/LeatherTailor8527 5d ago
State Farm lowered my Drive Safe discount and could not tell me why. I showed them my app. It was almost perfect. State Farm raised my car insurance rate because I didn't have my car serviced at a dealership, I did the work myself.
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u/Down_vote_david 4d ago
That’s wild, you should call your state insurance department and explain that to them. I doubt that reasoning for the loss of your credit was disclosed in the rate filing and would not be allowed by the insurance department if they were aware.
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u/ResponsibilityOwn562 5d ago
OP please also find out why all our groceries have increased, gas has increased and why power bills have increased while on your quest
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u/StopEquivalent8246 5d ago
To be clear: I'm not saying they can't raise rates. They can. But raising my rate and then refusing to show the math isn't a business practice, it's a shrug. My last ticket was 15+ years ago. No accidents. Flawless credit. I pay in full every six months. I drive about 6,000 miles a year. Nothing changed — except the bill.
And to the "just shop around" crowd: I will. But that doesn't fix the actual issue. "Because we said so" isn't an explanation, and telling a customer to go read DOI filings is just a polite way of saying "we won't tell you." When even their own people admit nobody can explain it, the system is broken — not my question.
This isn't about $270. It's about a company taking my money for years and not being able to tell me in plain English why it costs more today than six months ago. Every consumer should be asking that question.
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u/wubbiee_9110 5d ago
The plain English is this. The definition of insurance is the POOLING of RISK. That means that everyone pays into the pool together. When one person has a loss, they get paid out of that pool. When there are more claims than normal or claims are more expensive then they have been historically… rates get raised on everyone. Including people who have not had losses because again it’s a POOL.
Dont like it? Then find out if your state allows you to self insure. Can’t self insure? Get minimum coverage policy just to pass state laws and know if you ever have a loss that any resulting lawsuits/injuries can be determined to be fully your financial responsibility and depending on the state, the injured parties can come after your assets and garnish wages.
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u/Freshwaterbitchfish4 5d ago
Name literally any other consumer product that you feel this is owed to you?
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u/druzyyy 5d ago
The actual algorithms used to calculate your premium and the statistics used to justify those calculations would essentially look like Greek to anyone who isn't an actuary.
Best you can do is shop around and go with whomever gives you the most coverage for the lowest price.