Gotten insurance with State Farm? If so please read!

[paturnpike]

Do progressive cover drone insurance? I want to know if Flo has my back if I have an unforeseen Mavic accident.

 

[_milo_]

Yeah how would they know, let's say you go with state farm then you go to geico... is tied to your ssn?

Not sure about the SS#, but its tied to you like a credit score.

 

[Saltyflyer]

Question from anyone that purchased the drone through the DJI website and has gotten this State Farm Insurance

For a receipt, did you just print out your Order Summary page? This shows the price and date and order completed. But I wanted to make sure this would suffice for a receipt.

Thanks.

 

[cactus683]

Are you able to do this right online or do you have to actually got to the state farm shop?

 

[Andrew F]

Does anyone actually have a positive claim story? It's easy for an insurance company to take your money and make a promise. It can be quite something else to actually make a claim on that insurance. Just sayin . . . State Farm is on my "no fly zone" list . . .

 

[pjd900]

I predict that, as soon as the "Mavic 2" comes out, State Farm will be inundated with claims of mysterious crashes from their original Mavic policy holders...
Seems way too good to be true.

 

[Foxtrot Uniform]

The people that are jumping on this $60 insurance are not thinking big picture...

 

[Merlin23]

I can't find a State Farm person here in Southern CA (Orange County, CA) if anyone has an agent and gotten insurance...please post their information on this blog.

 

[makg]

I predict that, as soon as the "Mavic 2" comes out, State Farm will be inundated with claims of mysterious crashes from their original Mavic policy holders

Hmm insurance fraud on a serial number tracked drone? I wouldn't want to dabble in that.
My experience with State Farm has been great so far, If I had an honest claim I wouldn't doubt they'll take care of me.
The peace of mind is easily worth $30 IMO.

 

[Saltyflyer]

The people that are jumping on this $60 insurance are not thinking big picture...

Please educate... expand on this.. I agree with makg , $30 for peace of mind is easily worth it.

 

[Andrew F]

Hmm insurance fraud on a serial number tracked drone? I wouldn't want to dabble in that.
My experience with State Farm has been great so far, If I had an honest claim I wouldn't doubt they'll take care of me.
The peace of mind is easily worth $30 IMO. View attachment 9160

I was in a "totaled" collision where both drivers were State Farm clients. The police and the insurance company and the other driver all said he was 100% responsible. State Farm tried to nickel and dime my payout for weeks. The car had JUST be bought and I could easily prove how much it was worth and they fought and fought to give me less. They went so far as to claim that the airbag that saved my life also damaged the car (by burning the seat fabric) and therefore diminished it's value. Imagine the insanity in that position (I have this documented.) It was a nightmare dealing with them - even though they were also my vendor. Once they finally paid out (I got what I was asking for), I switched carriers. I am very skeptical of this insurance policy so I will wait to see how they actually pay out when someone "loses" their Mavic - whether through negligence or no-fault. The cost of the insurance does not align with my expectation of the size of the potential pay out. There must be something else going on for this to pencil financially for State Farm. Sorry. Done venting.

 

[erkme73]

Yeah how would they know, let's say you go with state farm then you go to geico... is tied to your ssn?

Just like with Equifax and Transperian for credit scores, there is a risk rating database that all underwriters use. It's called LexisNexis (ChoicePoint). If you file a claim for any loss, regardless of carrier, it becomes part of your record.

Not sure about the SS#, but its tied to you like a credit score.

Not quite. See above.

Please educate... expand on this.. I agree with makg , $30 for peace of mind is easily worth it.

I was eager to jump at the piece of mind. But instead of just jumping, I sent a list of questions to the SF agent about the potential for a claim to affect my home or auto insurance rates. Here's her response:

A personal articles policy (PAP) policy is considered a “fire” policy. Under the fire category is home, PAP, and inland marine policies. If there is a claim on any of these policies, it is recorded in Lexus Nexus and does affect your future rating if you intend to get any of those policies started as new business.

With State Farm (I can’t speak for other companies) if you do a PAP claim during a time where you have an existing home policy, it will not affect your rate. As I mentioned before, however, if you start a new home policy, it does have the potential to affect that..

Any claim on any property policy could be considered during underwriting for rating purposes by any carrier, so it’s no different than having an auto claim and then shopping your auto policy after.​

Each person's LexisNexis is accessed regularly by much more than the insurer you currently have. Having losses recorded in that database can be significant - especially if you regularly shop for new insurance to obtain the lowest rates.

So, for those that are loyal to their current insurers, and have established histories, a claim on at SF policy likely will not affect your rates. But if you shop around for best rates when renewals come around, filing a claim for a loss on your Mavic will prove costly - as you will no longer qualify for the best rates.

 

[geofox784]

Add Utah to the list as well. An agent in Park City has agreed to cover mine and has written this policy up a "few" times before.

On another note, has anyone had any luck insuring theirs through Farmers? That would be ideal for me as they already insure me on home and auto.

Please use the link for the form in the original post to add the contact info for the Utah agent to the list. Should only take a minute. Thanks!

 

[geofox784]

Just like with Equifax and Transperian for credit scores, there is a risk rating database that all underwriters use. It's called LexisNexis (ChoicePoint). If you file a claim for any loss, regardless of carrier, it becomes part of your record.



Not quite. See above.



I was eager to jump at the piece of mind. But instead of just jumping, I sent a list of questions to the SF agent about the potential for a claim to affect my home or auto insurance rates. Here's her response:

A personal articles policy (PAP) policy is considered a “fire” policy. Under the fire category is home, PAP, and inland marine policies. If there is a claim on any of these policies, it is recorded in Lexus Nexus and does affect your future rating if you intend to get any of those policies started as new business.

With State Farm (I can’t speak for other companies) if you do a PAP claim during a time where you have an existing home policy, it will not affect your rate. As I mentioned before, however, if you start a new home policy, it does have the potential to affect that..

Any claim on any property policy could be considered during underwriting for rating purposes by any carrier, so it’s no different than having an auto claim and then shopping your auto policy after.​

Each person's LexisNexis is accessed regularly by much more than the insurer you currently have. Having losses recorded in that database can be significant - especially if you regularly shop for new insurance to obtain the lowest rates.

So, for those that are loyal to their current insurers, and have established histories, a claim on at SF policy likely will not affect your rates. But if you shop around for best rates when renewals come around, filing a claim for a loss on your Mavic will prove costly - as you will no longer qualify for the best rates.

Thanks for the further info. It's been established that there is a risk of increasing rates if you are planning on applying for a new policy elsewhere. However I've heard that you would have to have at least a few claims for it to prove that you are a higher risk individual and for it to make a noticeable difference. I'd say its 100% worth it for the vast total difference in cost between SF and DJI care.

 

[SRJ_Mavic_PRO]

Question from anyone that purchased the drone through the DJI website and has gotten this State Farm Insurance

For a receipt, did you just print out your Order Summary page? This shows the price and date and order completed. But I wanted to make sure this would suffice for a receipt.

Thanks.

Salt... I was able to use a screen grab of both my receipts for the Mavic & P4P and that worked for me.

 

[erkme73]

Thanks for the further info. It's been established that there is a risk of increasing rates if you are planning on applying for a new policy elsewhere. However I've heard that you would have to have at least a few claims for it to prove that you are a higher risk individual and for it to make a noticeable difference. I'd say its 100% worth it for the vast total difference in cost between SF and DJI care.

Every two or three days a new thread on this exact same issue is posted, and each time several pages of new dialog appear from new posters. Clearly people are not searching to see that this subject has been discussed repeatedly. That's fine, but each time no one seems to address this potential gotcha.

Underwriting standards are not guaranteed to be consistent or standardized. You assume you need multiple losses before there is an impact on rates, but that is a big assumption for something as important as risk ratings. Perhaps if your 60 years old and have never filed an auto or home claim, yes. But what about someone younger who has no real risk history? Or someone who's had a few benign claims before?

I'm not saying this is necessarily a bad deal. Rather people should go into it with eyes wide open and understand that there is no free lunch. Consider all the consequences.

 

[Hellsbellsidaho]

It doesn't make sense why would a insurance company accept a 60 dollar a year with no deductible policy...and if you crash in 3 months for example, they just say " oh yeah no problem here is your 1000 dollars for a new one sorry about that crash." .... there has to be some catch, like has anyone used a claim through State Farm for their drone? Like is it one crash done no more policy? Or how many crashes do you get?

If you they have a 100 policies at $60 that's $6000 per year and if there is two claims in that year they pay out $2000. They still make $4000. Insurance is a number game.

 

[LuvMyTJ]

Question from anyone that purchased the drone through the DJI website and has gotten this State Farm Insurance

For a receipt, did you just print out your Order Summary page? This shows the price and date and order completed. But I wanted to make sure this would suffice for a receipt.

Thanks.

I purchased mine from an out of state hobby shop. I just forwarded the receipt the store sent me to my agent.
And to clarify, you are not buying "drone insurance", you are buying a "personal article" insurance policy... you can add almost anything to it and the cost of the insurance is based on the value of the property you are insuring. So it could be expensive jewelry, a bag of golf clubs, etc.

 

[erkme73]

If you they have a 100 policies at $60 that's $6000 per year and if there is two claims in that year they pay out $2000. They still make $4000. Insurance is a number game.

That is true. But, consider also there are these factors:

1) Many people who buy the drone insurance will also be successfully marketed and recruited for larger home and auto policies (think of drone insurance as a loss-leader to get people in the store)

2) Those that have a loss are now 'eligible' for higher rates. Whether having a drone claim/loss is actually indicative of an actual increased risk as an insured is debatable. What is not, however, is that now there is a blemish in the risk rating profile that can be justified to demand higher premiums... Just as Geico donates thousands of radar/laser guns to police agencies.

 

[Dronix]

Excellent post OP! I just called Steve at Yates Agency (listed on the spreadsheet) and he was able to insure my Mavic & Spark for $45 / year. I had to supply Steve with paid receipts, serial numbers, my personal information (not including my SSN as Steve didn't ask for that), and he processed a payment of $45. Steve confirmed that Liability isn't included. I told Steve that I was recommended to contact him and he instantly knew it was via MavicPilots.com. From start-to-finish the process of me contacting Steve and having my Drones insured was about 4 hours.