State Farm is generating controversy with rate hikes affected thousands of drivers
Drivers in Maryland will be facing higher auto insurance rates coming from State Farm. The insurer has had many complaints issued against it over the past year due to rising insurance premiums, with some drivers claiming that their premiums were raised for accidents that were not their fault. Maryland insurance regulators have found fault with some of the premium increases that have been issued by State Farm, with some of these rate hikes hitting drivers that have only been involved in one incident in the past three years.
State organization will be investigating complaints coming from consumers regarding unfair rate hikes
The Maryland Insurance Administration is investigating the matter, looking into the complaints that drivers have issued against State Farm. The insurer accounts for some 20% of the state’s auto insurance market and has been raising rates for some time. Last year, State Farm rates auto insurance rates by an average of 0.8%. While the increase was very modest, other rate increases affecting certain drivers have generated some controversy for State Farm over the years.
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State Farm receives more complaints than other insurers operating in the state
According to the Maryland Insurance Administration, State Farm has received some 17,908 complaints from policyholders over the past 12 months. All of these complaints concern rate hikes coming from the company. By comparison, approximately 16,100 complaints were filed concerning personal auto insurance coverage against all insurers operating in the state from 2011 to 2013. Earlier this year, State Farm was ordered by Maryland officials to refund money, with interest, to some 782 customers that were hit with rate hikes.
Policyholders are worried about unfair auto insurance rate hikes coming from State Farm
Thousands of State Farm policyholders noted that their auto insurance premiums were raised due to a single claim for emergency road services that were issued in the past. While insurers often raise rates in order to recover from the financial losses associated with claims, policyholders believe that State Farm is raising rates in an unfair manner.