The consumer's point of view
State Farm and Allstate seems to have a tough competition between them where they have almost equal votes in their favor. Both State Farm and Allstate share the same amount of criticism too from agents as well as consumers. Individuals have accused one of the 2 companies of denying claims for absurd reasons and the other of not paying claims again for absurd reasons.
The community has a State Farm agent putting his vote in favor of both the companies. The agent says that State Farm gives more importance to professionalism and a sense of healthy competition.
Complaints against State Farm
- This company is accused of not being clear in their contract with the agents.
- They have the reputation of overcharging consumers.
The fact of the matter is that, all insurance companies seem to have unhappy customers or employees. Each company has different policies and hence they may or may not suit a customer or an individual looking for employment with that organization.
- Creating an agency through State Farm or Allstate?
- Who provides better auto insurance rates?
- Becoming an Allstate independent agent
- What consumers say about State Farm
- Consumer views on Allstate
- Pros and cons in State Farm
Total Comments: 91
Posted: Sun Dec 15, 2013 11:38 am Post Subject:
Let's see. Your vehicle was totaled and you want to keep it, and the insurance company has said you can purchase it for $1300. That amount will be deducted from what they are willing to pay for your totaled vehicle according to its Actual Cash Value (ACV).
ACV is the replacement cost minus depreciation.
You are asking about being paid the depreciated value plus the cost to both purchase and maintain the vehicle in working order. There is nothing in your or anyone else's auto insurance policy that offers to make such payment. Asking the insurance company to pay you $25,000 is absurd.
So let's try this another way. Over time, you buy $25,000 worth of milk, eggs, butter, bread, meat, cereal, fruit and vegetables over the years to feed yourself. On top of that, you pay $300 per month for electricity, gas, and water utility services. And you pay a gardener $100 per month to mow your lawn. So maybe that adds another $25,000 to the total. Not to mention the $100,000 in home loan payments you have made.
Your home unexpectedly burns to the ground one day. The insurance company writes you a check for $350,000 . . . the amount you chose to cover the repairs to the home and your personal property within it.
But now you want them to pay you for the food you ate and the utilities you consumed, and the grass that was cut. Is that reasonable? Of course not.
How is this right or lawful?? Am I missing something here?
Yes, you are certainly missing something. You are confusing the cost of maintaining and operating your vehicle with its value. If the value of your vehicle included those elements, you would never have to pay for a new car again in your lifetime.
You would take the vehicle to a new car dealer and say, "Yessir, I've driven this vehicle over 200,000 miles, put $5,000 into for tires, $7,500 for oil changes, $35,000 in gasoline. Oh, and a few years back, I had to replace the engine because I ran it without water in the radiator. That set me back $3,500. And, of course, I paid $25,000 in loan payments. So, you see, the value of my vehicle is $75,500 plus another $1,300 in salvage value. You're asking $30,000 for this new car today. The way I see it, if I buy that car, you will owe me $46,800. Where do I pick up the check?"
That, too, is absurd.
What are you missing? The definition of ACV that controls your policy.
REPLACEMENT COST MINUS DEPRECIATION.
That's what you agreed to accept, and that's what the insurance company is offering. Next question.