Premium misquoted 5 months ago now they are raising it $300/month

[adonai1]

I was quoted $194/month to add a 2018 VW Golf R with my 17 year old son as the primary driver to our existing State Farm policy.
In case it matters, we have 6 other vehicles as well as HO on this policy. He’s been paying that since September 2023. A few days ago I noticed his premium jump up to over $500 a month!
The reason Stare Farm is giving me is that the computer made an error when the policy was quoted and they’re sorry but there’s nothing they can do and I’m lucky it’s not been back dated to the initiation of the coverage!
I’m waiting for a call today from the office manager, who, incidentally, was the one who gave me the quote!

Is it legitimate that they can do this when they have admitted the mistake was on them??
I appreciate any amount of advice on this!

 

[saywhat1]

@adonai1 Yes, they're allowed to correct rating errors. And, yes, I agree that it was lucky they didn't backdate the error.

 

[adonai1]

@saywhat1 Thank you! I was fairly sure I had no recourse but was still hopeful. He can afford to pay the premium, thankfully, but is super bummed about the increase.

 

[toast19]

@adonai1 Every answer is state dependent. Different state different rules.
Computers don’t make errors. People entering the incorrect data do. So make sure you find out what the error was.

 

[adonai1]

@toast19 Thank you!

 

[wenura]

@adonai1 If I had to guess what happened (i did this by accident with State Farm when I first started) is they got your son listed in the house but never “assigned/made primary operator” on the VW.

I had an 18 year old co-sign with grandma so both were listed on the policy but I submitted app with grandma as main driver and the 18 year was in the system just not assigned to a car. It did not get caught for over a year when the 18 decided to buy a new car.

In your case looks like at renewal the system caught it.

 

[adonai1]

@wenura Thank you!

 

[dsal]

@adonai1 put him as a name driver and select limited mileage and blackbox

 

[lindseyt]

@adonai1 A 17-year-old driving a Golf R... yep, that's an appropriate premium, because actuarial tables say he's going to wrap it around a tree. The loss numbers for young drivers in high-performance cars are not good, and insurance is priced accordingly.

All you can do is shop around to other carriers and see if he can get a better deal from one of them. There's no benefit to loyalty, it's always worth getting different quotes at every renewal.

 

[adonai1]

@lindseyt Thank you!

 

[tlk71]

@adonai1 Make him secondary driver it’ll lower the premium and say it’s used for pleasure/leisure. Simple.

 

[wenura]

@tlk71 While you can do this, every driver needs to listed on a car. Putting him on an older cheaper car does save money but it does mess with corporate as you are not paying for the risk your house has.

State Farm expects and budgets for every $1 you give them they expect to pay out $1.07 in claims. By not assigning your son the right car mess with amount of money taken in vs what gets paid out. On a small scale it is nothing burger but if 1000s of households do this State Farm and insurance companies will raise rates.

With all that said do what’s best for your family and don’t worry about a trillion dollar insurance company too much

 

[adonai1]

@tlk71 Thank you!

 

[toast19]

@adonai1 Every answer is state dependent. Different state different rules.
Computers don’t make errors. People entering the incorrect data do. So make sure you find out what the error was.