State Farm Boat Insurance! DON'T GO THERE!!!

[Bullzeye]

In May a week before the Triton Owners Tournament, I called the State Farm for to get the boat covered...

For an agreed value boat insurance, I paid $422.00 for the year.

At the beginning of November, I received renewals for the car and truck, I have another vehicle that renews in January. For the fun of it I started checking on line with other companies... On the wife's car and truck and the 97 Explorer, all three were costing approximately $860.00 every six months, I found a place that saved me over $140.00 with better coverage on all three. So, I called State Farm, I have been very loyal customer with State Farm for over 20 plus years, house and all vehicles, so I asked why it is so high.

Here is where it went south. Being that I have been a loyal customer for so long, State Farm has granted me "GRP" Guaranteed Renewable Policy, and for that I pay a little more... With the "GRP" they can never cancel me for covering my vehicles. And for that generous "GRP" I get to pay for it generously.

The short story is the conversation went along the lines, I need State Farm more than State Farm needed me. So, I went with the other company, as well as I asked Bob for a quote on the boat, another saving of $112.00 a year. Thanks Bob, I am on my way, just going to take a while, and here is why.

When I cancelled the boat policy, State Farm said nothing other than sign here... So, I received the notice that the boat is cancelled per my request and NO refund of the balance of the year. I called and asked about it. The State Farm policy on boat insurance, it's a seasonal item therefore you will not get a refund for canceling during any part of the year after the policy is issued. It is the opinion of State Farm, boats are only used for part of the year, so when you park if for the winter, the insurance must stay in place. Per the agent at State Farm said they were losing money by customers canceling in the winter only to reinstate it in the useable months, therefore no refund...
Now, the State Farm agent to trying and reinstate the boat policy as a favor, to save me money, because of my loyalty.


Education is valuable and expensive.

Stay tuned to the results...

[M4A1]

Wouldn't have expected that from State Farm.

[wolfman051]

All unused premium should be returned.

[KYSkipper]

Not on a boat. As Bullzeye said, most companies short rate cancel Boats, Motorcycles, and other seasonal items. The premium for a boat is relatively cheap. It's that way because it's already calculated that it won't be used the entire year and it's built into the premium. Some companies will refund unearned premium if the boat is sold but not for other reasons.

[wolfman051]

The company I work for returns all unused premiums for boats, no matter of cancellation reason.

[M4A1]

The company I work for returns all unused premiums for boats, no matter of cancellation reason.

My companies are the same, and I would make sure my customers were aware if they didn't pro-rate cancel. It is not uncommon for a cancellation fee though. I'm shocked State Farm operates this way compared to the others in the top 10 property and casualty companies.

[Nova Kaw 650]

Not on a boat. As Bullzeye said, most companies short rate cancel Boats, Motorcycles, and other seasonal items. The premium for a boat is relatively cheap. It's that way because it's already calculated that it won't be used the entire year and it's built into the premium. Some companies will refund unearned premium if the boat is sold but not for other reasons.

It's the same here. Motorcycles, boats, snowmobiles. No refunds at cancellation unless it's sold.