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State Farm Ins scam

Discussion in 'Off Topic Threads' started by dirk, Jan 11, 2012.

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  1. dirk

    dirk Member

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    Verizon Wireless and Bank of America caused a whirlwind of trouble for attempting to add "service" fees to customers bills. These fees were nothing more than processing fees and the public had a right to be upset. Well guess what boys and girls, State Farm has been doing it and gotten away with it without even a whisper. On their Notice of Payment Due there is a $3 service charge that is nothing more than a processing fee. Where's the outrage? Is it because no-one checks their statements anymore? Check your next bill for the "Service Charge".
     
  2. stokinpls

    stokinpls Well-Known Member

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    I like the one on my electric bill. 3 years ago it was $16 a month, then it was raised to $24. And they continually send you magazines telling you how to cut back on power usage. Natural gas is from a separate company and their "customer charge" is $19.72 per month. Nothing like a built-in wage increase I guess. ;-)
     
  3. halfmile

    halfmile Well-Known Member

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    Don't confuse service charges with minimum charges. A minimum charge is to maintain the account and billing info whether you use any gas/electricity or not.

    Lots of people with hunting shacks here keep the electricity on and pay the minimum rather than disconnecting and reconnecting, which would cost more.

    I would bitch about service charges but minimums are a necessary evil.

    HM
     
  4. mixer

    mixer Well-Known Member

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    No service charge on my State Farm auto insurance bill. Could be because I get the bill on line and pay on line.


    Eric
     
  5. Basfshmn

    Basfshmn Member

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    southern ohio
    No service charge on my bill either, maybe thats why there is no outrage from me. Rick
     
  6. grntitan

    grntitan Well-Known Member

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    I have had State Farm for over 25 years. I pay mine online and see no service charge. I double checked after reading this thread. I can't remember seeing one before we started using electronic billing but maybe that is the difference. As stated above though, a service charge is not the same as what Verizon was trying to pull.
     
  7. 870

    870 Well-Known Member

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    Are you possibly not paying the entire premium on the original due date? I believe they allow you to pay half of the premium when initialy due, with the balance due sometime later. There is a small service charge for using this option.
     
  8. tom berry

    tom berry Active Member

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    A service charge for monthly billing is hardly a scam and $3 is really low for a monthly billing service fee.

    Pay the bill in full and save yourself $33 per year. Better yet, cancel your policy and go without insurance.

    My company provides a 10% discount if paid in full. I chose that option. The first check kind of hurt, but then you budget for it and now it's painless.
     
  9. BIGDON

    BIGDON Well-Known Member

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    Why don't you try sending out a bill and then getting it back process it and do all this for $3, how many times a year. In addition toss in how many reminders because you didn't pay the original bill.

    You are paying for the option of making payments. Every company I know of does the same thing and some charge more and others less. Why should you pay the same as the insured who pays once.

    Don
     
  10. TOOLMAKER 251

    TOOLMAKER 251 Active Member

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    My auto insurance co. will do the same if you decide to start paying off the premium in quarterly or monthly payments. Pay it once a year and be done with it.
     
  11. Itchyb

    Itchyb TS Member

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    Service fee, billing fee, most carriers do it. Independent agent 14 years.
     
  12. John Galt

    John Galt TS Member

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    My electric company reduced their minimum charge by $7 per month if you receive your bill electronically and pay it online. Amazingly, the vast majority of people don't take advantage of this great deal. Go figure.

    From my experience, most insurance companies charge a fee if you choose to pay the bill monthly instead of all at once. The choice is yours so don't complain if you choose to pay the fee. USAA is the only one that doesn't as far as I know and they just stopped charging a fee a few years ago.
     
  13. grntitan

    grntitan Well-Known Member

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    Your right Galt.

    We pay all but one bill on-line. The only one we don't pay on-line is simply because they are not setup for it yet. Its great being able to pay 24hrs a day 7 days a week and the payment is made instantly as well as confirmed instantly. No waiting for the mail to deliver it and then the chance of whoever processes a chance of misplacing it. As Galt pointed out, there are also several of ours that are cheaper because we pay on-line. It's amazing the people who will not take advantage of the great advancements in bill paying and on-line banking in general. As i say though, to each his own.
     
  14. cubancigar2000

    cubancigar2000 Well-Known Member

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    If you have State Farm you are already paying too much anyway
     
  15. X Trap 2

    X Trap 2 TS Member

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    I remember well the loss my neighbor had and State Farm did not cover as attorney said they should have covered. Seems they made the news here lately for some other thing.

    Someone also posted that there was a bumper sticker people in this town had made that said. " IF YOU HAVE STATE FARM INSURANCE PLEASE DON'T HIT ME " Ray
     
  16. b12

    b12 Well-Known Member

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    When I am sent a bill if figure they factord in their profit. Now they want to add a fee to charge me. I don't think so. I have been in business myself for many years before I sold. I never charged my customers a fee for charging them.When I was charged a fee for processing I also deducted the same fee for taking my time to make out the check.
    I don't do any online payments of anykind. Call me old fashion but everday I hear about peoples bank accounts being stolen. credit card accounts stolen. If they want my money they they will get it my way.
    Oh by the way State farm has been a scam for 30 years thats why I dropped them 30 years ago. Wild Bill
     
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