State Farm Insurance and Onstar = 1 yr Free

[ChicagoDave]

I just received a postcard from Onstar - they are teaming up with State Farm Insurance and offering a free 12 Month Safe and Sound Package ($199 value). VERY COOL!

If you have State Farm - and don't have Onstar activated - give Onstar a call and see if they will give you this offer.

 

[Anthony Cundari]

There's never a free lunch. There's a reason why it is being offered and we don't know what it is. I don't know what the fine print is and I got the same offer.
Last year State Farm offered the new Safe & Save Program that was linked to having an OnStar Subscription. Let me quote the last bullet and a few lines from the State Farm Drive Safe & Save Program / OnStar offer from last year: "Authorize OnStar to provide State Farm with odometer information from the vehicle. The Drive Safe & Save Program savings will be based on the number of miles the vehicle is driven. Your premium will be adjusted at each renewal as odometer readings become available. The less you drive the more you save." Without it being stated I would believe the if you drive more, your premium would be increased.
SO what is behind this offer? Buyer beware!

 

[Popbigguy]

About once a year,,,,,, my insurance sends me a post card to fill out the mileage on my cars. I send it in or they get it from Onstar,,,,, What's the difference?

 

[Lola's Mom]

Yes - at least in CA your car is rated on how many miles you drive it per year. When I was an agent when we were in contact with a member, it was part of our job to ask for the odom readings so that the billing dept could - most often - raise their rates. In CALIFORNIA (you have to check your own state law) we are NOT required to give the odom reader even if requested. Those forms that are sent to us do not need to have that filled in - of course very few people know that so they fill in the readings and their policy is 'adjusted'. All companies require that information when you first take out your policy and when you add vehicles. There is a HUGE difference between your car being rated as for pleasure (usually under 3k mi), or for work or school. That's why motorhomes are so cheap to insure .... they are hardly ever on the road.

 

[Anthony Cundari]

This is my perspective on it. The difference is 12x as much information about you. Now there is a single annual data point. Under this program you will be reporting monthly data points on your mileage.
Insurance is a business that makes a profit by charging premiums that exceed the probable payout of claims. Insurance is data and analysis of data. Let’s take the example of a 12,000 mile a year policy on a XLR. The insurance company thinks you are driving it 1000 miles a month with a corresponding risk. But, it sits in storage from November to April being driven a total of 500 miles in the 6 months. Then, you hit the road. May = 1500, June =2500, July =2500, August =2500, Sept = 2000, October =1000 Total = 12,500. The insurance company probably has an average for 12,000 miles policies where they give you a grace amount to 12,600 based on statistical data from all their 12,000 mile policies before flagging it for further analysis. Why tick off a good paying customer for being slightly over? They don’t want to lose your business. Now, they accumulate monthly data from Onstar instead of the single annual data point from their letter. The average they expect is 1000 with a max of 1300. Anything over 1300 gets flagged for further analysis. The summer months indicate that you are driving the car at a 30,000 mile a year rate versus the 12,000 mile policy that you are paying for. Next you’ll get a call from your friendly agent increasing your premium.
Interestingly I didn’t get a letter with the Onstar offer for my CTS.

 

[ChicagoDave]

This is my perspective on it. The difference is 12x as much information about you. Now there is a single annual data point. Under this program you will be reporting monthly data points on your mileage.
Insurance is a business that makes a profit by charging premiums that exceed the probable payout of claims. Insurance is data and analysis of data. Let’s take the example of a 12,000 mile a year policy on a XLR. The insurance company thinks you are driving it 1000 miles a month with a corresponding risk. But, it sits in storage from November to April being driven a total of 500 miles in the 6 months. Then, you hit the road. May = 1500, June =2500, July =2500, August =2500, Sept = 2000, October =1000 Total = 12,500. The insurance company probably has an average for 12,000 miles policies where they give you a grace amount to 12,600 based on statistical data from all their 12,000 mile policies before flagging it for further analysis. Why tick off a good paying customer for being slightly over? They don’t want to lose your business. Now, they accumulate monthly data from Onstar instead of the single annual data point from their letter. The average they expect is 1000 with a max of 1300. Anything over 1300 gets flagged for further analysis. The summer months indicate that you are driving the car at a 30,000 mile a year rate versus the 12,000 mile policy that you are paying for. Next you’ll get a call from your friendly agent increasing your premium.
Interestingly I didn’t get a letter with the Onstar offer for my CTS.

As competitive as insurance is - if the premiums exceed what you are comfortable with paying, wouldn't you just go shop a new insurance company? Also, what about the benefits of Onstar? Aren't you gaining the benefits of Onstar, without having to pay their fee for 12 months? My postcard had no mention of sending State Farm any odometer readings, the only fine print was a required purchase of phone minutes (which cost me $4.95 for 60 minutes). My take on it is that Onstar throws out a free 12 mos. promo, with the hope that people like it and continue it (thats just plain simple Marketing, to me).

I just put this thread out there if anyone was interested in checking with their State Farm agent for a possible deal, if they wanted Onstar. That's all.

 

[sschooley]

Dave,

In my view you I think you are a hero to put this out to everyone. I'm sure it's no secret that I am a Hugh on-star advocate. If someone is a State Farm insured and is uncomfortable with a free year that might be used to track auto rates; just sign up for an independent multi-year contract for the Safe & Sound plan or Directions & Connections plan...you will be so thankful if it ever has to kick in to address an emergency. The key is to remember it is there when you need it.......

Just do it...

Steve

 

[Cadiblk]

Is there an offer code or any code that you need to provide the folks at Onstar? I have State Farm, but have not received the post card. May be time to visit my agent.

 

[ChicagoDave]

Is there an offer code or any code that you need to provide the folks at Onstar? I have State Farm, but have not received the post card. May be time to visit my agent.

I just received a postcard in the mail (the postcard was specific to my XLR). The instructions on the postcard just said to press the BLUE button in my XLR and wait to speak to a representative. I'm sure that if you just press your Onstar button in your XLR and speak to a representative, they can tell you if you can get the deal. Good luck.

 

[BoughtTheXLR]

I used State Farm for home and auto for 24 years in Pa, and signed up with them when we moved to Florida. Had one small claim about 15 years ago.

A couple of years ago, State Farm announced they would stop selling home insurance in Florida. They eventually decided to stay but removed nearly every discount, which made them so expensive I took my homeowner policy business elsewhere.

Of course, they then raised my auto insurance rates significantly because I no longer qualified for their homeowner discount.

I'm now with Progressive, paying around $400-500 a year less for the same coverage on our XLR and RX400h. Several other companies also quoted rates significantly below State Farm's.

If you're a State Farm customer and like the idea of saving $200, it might be time to do some insurance rate shopping.

 

[First Robin]

I have been insured with State Farm for 54 years, my Colorado Agent told me about On Star and State Farm agreement and signed up for it right away. On Star does send State Farm the odometer readings but it doesn't matter to me as I never exceed my annual 7500 miles on either car. When I had my homes in Florida I also had State Farm due to the fact I had properties insured in Colorado with State Farm so they insured the Florida homes even though they had stopped writing new business in Florida. I have checked rates with other companies and have not found one that can compete with State Farm. I get a lot of discounts, multiple lines, multiple vehicles, accident free. I pay 468,91 six months on the 2006 XLR, $356.56 six month on the 2011 DTS Platinum, & 789.00 annual on the Colorado Springs home, $718.00 on the AZ home and $182 for my umbrella policy. Total annual premiums=$3349.94. I have the highest coverage you can get on both vehicles so I think these are good rates.

 

[rleonard]

My card showed up. Here is the Gotcha...

"Requires the purchase of prepaid minutes"

Nothing is free......

 

[ChicagoDave]

My card showed up. Here is the Gotcha...

"Requires the purchase of prepaid minutes"

Nothing is free......

My total purchase price was $4.95 for 60 minutes, that are good for a year (that is a special deal, only available when you call to activate the Onstar at that time - from what I was told). $6 (with taxes) for 12 months of Onstar and 60 "emergency" minutes - still sounds like a deal to me.

 

[Comfortzone]

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[Comfortzone]

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