Insurance policy issues

[Dianoetic]

So, here's my situation:

I went to sign up for insurance at State Farm because they were giving me the best rate possible. Whilst applying at the office, the agent realized I didn't have a driver's license and said I wouldn't be able to get my motorcycle insured. In a hasty decision, since I needed to go to the DMV and register my motorcycle, my parent's insurance policy came into play since I asked them if it'd help at all. They ended up using my mom's State Farm number (with her consent) and put in on my application. The main office said I'd be covered even though it wasn't normally allowed. I also got a loyalty discount of more than 25%.

Later, my mom spoke with her insurance agent and we found out the hard way that she has an umbrella plan. Her agent is telling her that her premium will go up and I'll pay more, even though I'm getting more coverage (the same they have), whereas my agent is telling me if I go to another insurance company, my parents will have an increased premium since State Farm now knows the motorcycle is under this household. I believe they said her premium will increase at least 50% if I go with another company.

There's a lot of conflict between both agents since her agent is dumb and my agent isn't as experienced. Her agent told me I should've bought a 600-650cc motorcycle rather than a 250 and he also told me to go to AllState and gave us an agent to talk to. He's also had some bad history with my brother who used to have insurance under my parents. My agent has been helpful throughout but my mom doesn't want to listen.

I was wondering if anyone had any useful tips or suggestions or ever been in a similar situation. I'm confused as to what I need to do. My mom is threatening to cancel her umbrella plan which makes no sense since my coverage would've been flawless and it wouldn't have hurt their insurance history. Not quite sure if I should move insurance companies or if I should discuss it further with State Farm.

 

[TheRiddler]

Later, my mom spoke with her insurance agent and we found out the hard way that she has an umbrella plan. Her agent is telling her that her premium will go up and I'll pay more, even though I'm getting more coverage (the same they have), whereas my agent is telling me if I go to another insurance company, my parents will have an increased premium since State Farm now knows the motorcycle is under this household. I believe they said her premium will increase at least 50% if I go with another company.

There's a lot of conflict between both agents since her agent is dumb and my agent isn't as experienced. Her agent told me I should've bought a 600-650cc motorcycle rather than a 250 and he also told me to go to AllState and gave us an agent to talk to. He's also had some bad history with my brother who used to have insurance under my parents. My agent has been helpful throughout but my mom doesn't want to listen.

There's so much wrong with this it's astounding.

How old are you? I ask because it seems like you're young, and they're trying to rip you off based on your ignorance (not an insult, you just don't know about insurance yet).

This line:

my parents will have an increased premium since State Farm now knows the motorcycle is under this household

actually makes me angry. State Farm has no reason to charge more for insurance for a vehicle THEY DON'T INSURE. I'd drop them on the principle of that issue alone. Unless they're still keeping you on the policy but taking the bike off.

Secondly, State Farm wants to keep your parents' business. They tend to say go anywhere else and you'll pay more. There's a very good chance that you can find a cheaper agent with another company. They don't know the rates of other companies; no one does until you get a quote from them. My experience with State Farm had them quoting me...wait for it...8 times more than the other guys. I was going to pay $5000 a year, versus $600 with who I settled on.

And the agent telling you to get a bigger bike is an idiot.

Search around. Markel, Progressive, Geico, AAA...and have your parents do the same. But honestly, nothing will be cheap for you (new rider new bike).

 

[Dianoetic]

There's so much wrong with this it's astounding.

How old are you? I ask because it seems like you're young, and they're trying to rip you off based on your ignorance (not an insult, you just don't know about insurance yet).

I'm 21 and no offense taken. I've never been insured and I don't care much for insurance. If they want to tell me a million facts about an umbrella policy, that's fine, but I just want to know what's important for my situation, something both sides are lying about.

actually makes me angry. State Farm has no reason to charge more for insurance for a vehicle THEY DON'T INSURE. I'd drop them on the principle of that issue alone. Unless they're still keeping you on the policy but taking the bike off.

Secondly, State Farm wants to keep your parents' business. They tend to say go anywhere else and you'll pay more. There's a very good chance that you can find a cheaper agent with another company. They don't know the rates of other companies; no one does until you get a quote from them. My experience with State Farm had them quoting me...wait for it...8 times more than the other guys. I was going to pay $5000 a year, versus $600 with who I settled on.

And the agent telling you to get a bigger bike is an idiot.

Search around. Markel, Progressive, Geico, AAA...and have your parents do the same. But honestly, nothing will be cheap for you (new rider new bike).

Hm, well under the umbrella policy, they say I'd get my parent's coverage which would make it astronomically cheaper compared to similar coverage from other insurance companies (I have shopped around several places). I'm paying less than minimum coverage would cost, mainly because of the loyalty discount. I do agree it sounds dumb that my parent's premium would increase if I don't insure my motorcycle with State Farm, but they explained it as one household and since my application has already been filed, State Farm is aware that my motorcycle belongs to this household which is protected by an umbrella policy, therefore, there's an increase in their premium because any liability not covered by my other insurance company falls back on my parents.

I suppose I should shop around. Both sides are standing firm in what they're saying, so it's become more of a conflict than coverage.

 

[Sane_Man]

So, here's my situation:

<snip>

There's a lot of conflict between both agents since her agent is dumb and my agent isn't as experienced.

There's a lot of that going around.

Wasn't you told in another thread that you needed a drivers license or permit to ride a motorcycle and to get insurance? I may be getting you mixed up with another young person, but there is a process in the way vehicles , license, and insurance works, and you are doing it in a out of sequence way.

 

[TheRiddler]

I'm 21 and no offense taken. I've never been insured and I don't care much for insurance. If they want to tell me a million facts about an umbrella policy, that's fine, but I just want to know what's important for my situation, something both sides are lying about.

I love insurance. Say you crash and you put someone in the hospital. Police find you at fault. That person spends 3 days in the hospital from a pelvic fracture (or something). You're on the line for their hospital bill, which will be around $50,000. I don't have that money in the bank, but by paying $50 a month to my insurance company and having enough coverage, my insurance pays that bill and I'm not making payments for that hospital bill for the next 20 years.

Hm, well under the umbrella policy, they say I'd get my parent's coverage which would make it astronomically cheaper compared to similar coverage from other insurance companies (I have shopped around several places). I'm paying less than minimum coverage would cost, mainly because of the loyalty discount. I do agree it sounds dumb that my parent's premium would increase if I don't insure my motorcycle with State Farm, but they explained it as one household and since my application has already been filed, State Farm is aware that my motorcycle belongs to this household which is protected by an umbrella policy, therefore, there's an increase in their premium because any liability not covered by my other insurance company falls back on my parents.

I suppose I should shop around. Both sides are standing firm in what they're saying, so it's become more of a conflict than coverage.

Do your parents have more than just vehicle insurance through State Farm? I've only ever bought insurance for myself so I've never dealt with an umbrella policy. That explanation makes it sound like it's for more than simply vehicles and is to protect the inhabitants in general against litigation.

That is another good point: if you fuck up and you're on your parents' policy and they don't have sufficient coverage, THEIR assets are up for grabs in case of a lawsuit. On your own policy that theoretically wouldn't be the case, but I don't know the extent of that umbrella policy.

 

[TurboTiger]

Umbrella policy covers more than insurance. Almost everything gets covered under the "umbrella" House / cars / I believe life insurance as well.

 

[genevo]

Sounds complicated. But I had a good experience with State Farm when I had to make a claim... Much better than AAA.

 

[clutchslip]

So, here's my situation:

I went to sign up for insurance at State Farm because they were giving me the best rate possible. Whilst applying at the office, the agent realized I didn't have a driver's license and said I wouldn't be able to get my motorcycle insured. In a hasty decision, since I needed to go to the DMV and register my motorcycle, my parent's insurance policy came into play since I asked them if it'd help at all. They ended up using my mom's State Farm number (with her consent) and put in on my application. The main office said I'd be covered even though it wasn't normally allowed. I also got a loyalty discount of more than 25%.

This whole thing is just amazing to me.
So, someone in your family is smart enough to make enough money to need an umbrella policy. And that someone is even smarter to buy an umbrella policy. BUT, there is no one smart enough in your household to realize that YOU should have a DAMN license to ride a motorcycle. The whole thing is insane. And you get a discount??????

If I was the insurance agent, I would have either laughed my ass off, or quit before I gave you a dime in insurance.

Not practical - but real.

 

[Sane_Man]

This whole thing is just amazing to me.
So, someone in your family is smart enough to make enough money to need an umbrella policy. And that someone is even smarter to buy an umbrella policy. BUT, there is no one smart enough in your household to realize that YOU should have a DAMN license to ride a motorcycle. The whole thing is insane. And you get a discount??????

If I was the insurance agent, I would have either laughed my ass off, or quit before I gave you a dime in insurance.

Not practical - but real.

QFT.

 

[msethhunter]

This whole thing is just amazing to me.
So, someone in your family is smart enough to make enough money to need an umbrella policy. And that someone is even smarter to buy an umbrella policy. BUT, there is no one smart enough in your household to realize that YOU should have a DAMN license to ride a motorcycle. The whole thing is insane. And you get a discount??????

If I was the insurance agent, I would have either laughed my ass off, or quit before I gave you a dime in insurance.

Not practical - but real.

So do you suggest he goes down to the DMV on an un-insured motorcycle to take his license test? Or ride around on his permit un-insured untill he takes his license test?

What do you suggest.

 

[Charles R]

I would suggest he finish the MSF course he mentions in his sig. Gets a ride to the DMV to get his license, since passing the MSF means he doesn't have to ride the lollipop at that facility. Then take his new license, and shop around for insurance quotes.
Buy insurance...
And THEN, ride his motorcycle to his hearts content.

I'd also suggest that he have his parents talk to a more experienced State Farm Rep, because I don't like the inconsistancies, and since it's their money, they should make sure all the rates and policies are solid.

OP...
While GEICO is NOT a favorite around here, I just recently gave State Farm a chance for my business. Their rate was more than twice the amount of my Geico policy... And I've totalled a car under that policy..

 

[nbean16]

Why do you keep posting all of these ridiculous insurance scenarios? Why don't you just get a license? I Don't understand.

 

[MysterYvil]

I had State Farm for 28 years, no tickets, no claims...

However, when I needed them (an insured mook ran into our fully-insured parked car) neither the agent nor Claims seemed to know me. I had to do ALL the follow-up myself.

FUCK State Farm. Take your business elsewhere.

 

[SuperMike]

Why do you keep posting all of these ridiculous insurance scenarios? Why don't you just get a license? I Don't understand.

+1

 

[Dianoetic]

Sorry for the late reply, I've had a long day.

This whole thing is just amazing to me.
So, someone in your family is smart enough to make enough money to need an umbrella policy. And that someone is even smarter to buy an umbrella policy. BUT, there is no one smart enough in your household to realize that YOU should have a DAMN license to ride a motorcycle. The whole thing is insane. And you get a discount??????

If I was the insurance agent, I would have either laughed my ass off, or quit before I gave you a dime in insurance.

Not practical - but real.

Why the fuck do you need a license to ride a motorcycle? Haven't you heard of a learner's permit? Yeah, I get a discount under their loyalty program since my parents have been with them for over 25 years, I don't understand how that's difficult to understand. And if you were the insurance agent, laughing your ass off or quitting before you gave me insurance would be a good reason why your name isn't mentioned because you simply failed to do your job professionally.

I would suggest he finish the MSF course he mentions in his sig. Gets a ride to the DMV to get his license, since passing the MSF means he doesn't have to ride the lollipop at that facility. Then take his new license, and shop around for insurance quotes.
Buy insurance...
And THEN, ride his motorcycle to his hearts content.

I'd also suggest that he have his parents talk to a more experienced State Farm Rep, because I don't like the inconsistancies, and since it's their money, they should make sure all the rates and policies are solid.

OP...
While GEICO is NOT a favorite around here, I just recently gave State Farm a chance for my business. Their rate was more than twice the amount of my Geico policy... And I've totalled a car under that policy..

I understand you guys telling me I shouldn't be shopping for insurance right now, but that's not the issue, the issue is that I need insurance right now. I have a motorcycle, I'm riding, and I want coverage. I had to get insurance to transfer the title to my name and legally, I need insurance. I can't get my M1 license any sooner than the end of August because the DMV only has an open slot at the end of the month. If I shopped for insurance after receiving my license, I would be uninsured for 2+ weeks. Also, there's a reason why State Farm is giving me 10 months to get my M1 (which is ridiculously long) and that's because people get insurance before getting their license.

Why do you keep posting all of these ridiculous insurance scenarios? Why don't you just get a license? I Don't understand.

How am I continually posting "ridiculous insurance scenarios?" If you can't understand, then you shouldn't be posting in the first place, unless the only reason you post is to increase your post count for some reason that's beyond me. I would love to "just get my license" but I'm not asking why I can't get my license, I'm asking for insurance advice.


@ at the others who posted -
thanks to those who've been helpful or concerned. My situation is unique, but it's where I'm at and I can't change that. I've had a long day and as much as I love being told I'm wrong and ignorant, at least I'm trying to make sense of a situation that'll help enhance my riding abilities rather than hinder them.

 

[Dianoetic]

Do your parents have more than just vehicle insurance through State Farm? I've only ever bought insurance for myself so I've never dealt with an umbrella policy. That explanation makes it sound like it's for more than simply vehicles and is to protect the inhabitants in general against litigation.

Thanks for the help as always. I think that is why State Farm is so concerned, but had I known that from the beginning, I would've gone with another insurance company, but now they're saying they can't ignore the paperwork I submitted. Apparently now that they're aware of the existence of a motorcycle at this household, insurance premiums are going up.

Umbrella policy covers more than insurance. Almost everything gets covered under the "umbrella" House / cars / I believe life insurance as well.

Thank you, I was wondering what exactly an umbrella policy might consist of. I don't know if my parents have life insurance, so I was confused since car insurance would be the only one, but yes, we do have home owner's insurance, so it's probably all State Farm.

So do you suggest he goes down to the DMV on an un-insured motorcycle to take his license test? Or ride around on his permit un-insured untill he takes his license test?

What do you suggest.

Someone who took the time to understand my situation rather than casting blame for the way I'm handling it. Thanks for putting it out there so it's easier for people to understand.

I had State Farm for 28 years, no tickets, no claims...

However, when I needed them (an insured mook ran into our fully-insured parked car) neither the agent nor Claims seemed to know me. I had to do ALL the follow-up myself.

FUCK State Farm. Take your business elsewhere.

I've heard State Farm is decent, but I like hearing the other side as well. They seem to be rather inconsistent. I believe an employee at the office even told me that corporate wouldn't care much about any insurance agent giving the wrong advice and/or policy explanations, which makes me second-guess their professionalism.

 

[TurboTiger]

All the State Farm agencies I've met or talked with are independently owned and operated. They don't work for State Farm, they work for themselves. Thus they don't really get penalized if they give out incorrect information. Don't trust any insurance salesmen (That's what they really are), until you see it written down on paper. Insurance rules and regulation is a complicated mess, especially when your agent is giving out incorrect information. That said, I'm pretty happy with my State Farm agent and their network so far. I've had 2 comprehensive claims with them (Going through the second one right now, stupid dead deer on the freeway) and have been pleased with the process so far.

 

[rritterson]

OP- not to be too much of a dick here, but some of your questions show you have a lot of confusion and are impossible to answer. Like asking which elevator do you take to go sideways.

The best to fix this is to find an agent who will sit down, look at all of your existing coverages, explain what you have and might need, then be patient enough to answer all of your questions. It sounds like both agents you are dealing with are pretty shitty and are only making the problem worse. Find a new agent.

I can answer one of your questions though: why do you need a fucking license? Because the insurance company says so, and the state mandates you have insurance.

 

[UDRider]

So do you suggest he goes down to the DMV on an un-insured motorcycle to take his license test? Or ride around on his permit un-insured untill he takes his license test?

What do you suggest.

Take an MSF, don't ride until he gets a license. Really it's that simple.

 

[ebRider]

Take an MSF, don't ride until he gets a license. Really it's that simple.

From prior posts i've read from the op he has completed the MSF. The issue is he does not have a class C (car) drivers license. Because of this he has to take a special riding test on the motorcycle which does not involve riding circles around a lolipop to get his M1 even though the MSF portion has been completed. This test cannot be taken with an un-insured motorcycle. Based on posts above he can also not just walk into DMV to take this test, it has to be scheduled in advance. If i had to guess the 1 or 3 he refers to is 1. MSF(completed) 2, insurance (not yet) 3. receive M1 (not yet)