I have been a State Farm customer for 60+ years, ever since my first car and apartment. Recently I've noticed a change in their billing policy. I used to get statements for the car, house etc a few weeks before they were due. This week I received correspondence regarding my car insurance, including an enclosed "courtesy remittance slip." It states quite clearly that this is not a bill, but I can use it to make a payment before the next bill arrives.
My next payment is due in two months. I ran the numbers. If I keep my funds in my credit union and wait to pay this in November, I will gain a dollar or two, which is not big money. But if you multiply this by the approximately 100,000,000 policies that State Farm services, it becomes a useful chunk of change for the corporation.
This is all legal. It's not predatory or manipulative. But it adds to my growing dissatisfaction with American corporate business policies. Am I being unreasonable?
Being another frugal slightly younger person then you. I pay my State Farm premium online using my credit card the week before it's due so I get the 2% back from the credit card.
ReplyDeleteThe are currently having to pay out a $6 billion "dividend" to their car insurance customers because claims were well below premiums. The money has to come from somewhere other than the investors.
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