In Maryland, complaining about rate hikes is a way of life. In fact, if you want to raise someone’s rates in Maryland, you have to send them a letter explaining the rationale for the increase. And, that isn’t all: you also have to send a complaint form and an envelope to return the form.
Rest assured, these forms get used. Especially if the company in question is
State Farm. According to a NerdWallet report which was based on a Freedom of Information request, during the 12-month period ending in September, Marylanders had filed 17,908 complaints protesting
State Farm increases.
To put that in perspective, during the three years before that, Maryland policyholders filed 16,127 complaints against all insurers combined. Still, the figures speak to State Farm success in the state,w ith about a 20% share of the auto business, trailing only Geico at about 23%.
The Maryland Department of Insurance has ordered refunds to hundreds of State Farm customers in the state. The company voluntarily sent refunds to more than 3,000 additional customers.
At issue, among other things, is that State Farm in Maryland has been raising rates based on a single not-at-fault accident and even on a single roadside assistance call. The company points out that such claims are accurate predictors of future claims, and to not raise rates in these cases would be tantamount to passing these costs on to other drivers.
