3 Star Discount State Farm PDF Details

In the complex world of insurance, understanding specific policy details can significantly impact a policyholder's financial obligations following traffic incidents. The 3 Star Discount State Farm form offers a comprehensive overview of accident/violation discounts and surcharges, a critical aspect for vehicles rated as private passenger cars. Recognized for promoting safe driving, State Farm extends two levels of discounts: the 3-Star for those without at-fault accidents or minor violations in three years and no major violations in five, and the 2-Star for compliance with insurance requirements over the past year but with a costlier premium. Drivers not qualifying for these discounts face surcharges based on their record of accidents and violations, which can substantially increase their insurance costs. Importantly, the document details criteria for accidents to be considered at-fault or chargeable and lists what constitutes major and minor violations. It also outlines how each driver's record influences their Driver Record Level, affecting premium surcharges. With such measures, State Farm's policy intricately balances rewarding prudent driving while imposing penalties on risky behaviors, highlighting the financial benefits of maintaining a clean driving history.

QuestionAnswer
Form Name3 Star Discount State Farm
Form Length5 pages
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Avg. time to fill out1 min 15 sec
Other namesdoes state farm have accident forgiveness, accident discount state farm, state farm two star discount, is a three star discount good for state farm

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ACCIDENT/VIOLATION DISCOUNTS฀AND฀SURCHARGES

State฀Farm฀Fire฀and฀Casualty฀Company

Applicable฀to฀Vehicles฀Rated฀ As฀Private฀Passenger฀Cars

Effective฀July฀15,฀2005฀New฀Business Effective฀August฀15,฀2005฀Renewals

(continued฀inside)

Like฀a฀good฀neighbor,฀State฀Farm฀is฀there.®

STATE฀FARM฀FIRE฀AND

CASUALTY฀COMPANY

Home฀Office:฀฀

Bloomington,฀IL฀฀61710-0001

7/05฀(C)฀฀฀ ฀

฀฀฀฀฀฀

฀฀฀฀฀฀฀฀฀฀฀153-4255฀MN.7

The฀following฀discounts฀and฀surcharges฀apply฀ based฀upon฀the฀drivers’฀chargeable฀accidents฀and฀ violations.฀฀฀

3-STAR฀DISCOUNT฀–฀The฀3-Star฀Discount฀applies฀ if฀the฀assigned฀drivers฀have฀had฀no฀at-fault฀accidents฀ or฀minor฀violations฀during฀the฀past฀three฀years฀ and฀no฀major฀violations฀during฀the฀past฀five฀years.฀ There฀must฀also฀be฀at฀least฀one฀driver฀who฀has฀ been฀licensed฀for฀three฀years฀and฀the฀household฀ vehicles฀must฀not฀have฀been฀driven฀without฀liability฀ insurance฀in฀violation฀of฀any฀financial฀responsibility฀ or฀compulsory฀insurance฀requirement.฀฀

The฀3-Star฀Discount฀will฀continue฀to฀apply฀as฀ long฀as฀the฀drivers฀do฀not฀have฀any฀violations฀or฀ chargeable฀accidents.฀฀Otherwise,฀the฀smaller฀

2-Star฀Discount฀will฀apply,฀and฀a฀surcharge฀may฀ also฀apply.

2-STAR฀DISCOUNT฀–฀If฀the฀3-Star฀Discount฀ doesn’t฀apply,฀the฀2-Star฀Discount฀applies฀ if฀the฀insured฀vehicle฀has฀not฀been฀driven฀ without฀liability฀insurance฀in฀violation฀of฀any฀ financial฀responsibility฀or฀compulsory฀insurance฀ requirement฀during฀the฀past฀year.฀฀The฀premiums฀ for฀the฀2-Star฀Discount฀level฀are฀20%฀higher฀than฀ the฀premiums฀for฀the฀3-Star฀Discount฀level฀for฀ Liability,฀Personal฀Injury฀Protection,฀Compre– hensive,฀and฀Collision฀Coverages,฀36%฀higher฀ for฀Uninsured฀and฀Underinsured฀Motor฀Vehicle฀ Coverages,฀and฀59%฀higher฀for฀all฀other฀coverages.

DRIVER฀RECORD฀SURCHARGES฀–฀Major฀ violations,฀minor฀violations,฀and฀chargeable฀ accidents฀incurred฀by฀the฀drivers฀of฀the฀vehicle฀ may฀result฀in฀surcharges฀applied฀to฀Liability,฀ Personal฀Injury฀Protection,฀and฀Collision฀Coverage฀ premiums.฀฀The฀surcharge฀depends฀on฀the฀number฀ and฀timing฀of฀the฀accidents฀or฀violations,฀and฀will฀ remain฀in฀effect฀for฀up฀to฀three฀years.

–฀1฀–

–฀2฀–

At-fault฀accidents฀are฀those฀for฀which฀State฀Farm®฀ made฀payments฀under฀the฀Property฀Damage฀ Liability฀or฀Collision฀Coverage.฀฀In฀the฀event฀of฀ a฀multiple฀vehicle฀accident,฀a฀property฀damage฀ liability฀payment฀must฀have฀been฀made.฀฀An฀at- fault฀accident฀is฀considered฀chargeable฀when฀ the฀Company฀has฀paid฀$750฀or฀more฀under฀ the฀Property฀Damage฀Liability฀and฀Collision฀ Coverages฀combined.฀฀(For฀accidents฀occurring฀ prior฀to฀April฀1,฀1999,฀payments฀of฀$400฀or฀more฀ under฀Property฀Damage฀Liability฀or,฀in฀the฀event฀of฀ a฀single฀car฀collision,฀under฀Collision฀Coverage.)฀

An฀accident฀that฀occurred฀within฀the฀three฀years฀ prior฀to฀the฀date฀of฀application฀will฀be฀considered฀ at-fault฀if฀it฀resulted฀in฀death฀or฀bodily฀injury฀ or฀damage฀to฀any฀property.฀฀An฀at-fault฀accident฀ is฀considered฀chargeable฀if฀it฀resulted฀in฀death฀ or฀bodily฀injury฀or฀damage฀to฀any฀property฀in฀ the฀amount฀of฀$750฀or฀more฀($400฀or฀more฀for฀ accidents฀which฀occurred฀prior฀to฀April฀1,฀1999).฀

A฀multiple฀vehicle฀accident฀will฀not฀be฀considered฀ at-fault,฀nor฀chargeable,฀if฀the฀driver฀was฀less฀than฀ 50%฀liable.

For฀accidents฀that฀occurred฀prior฀to฀the฀date฀of฀ application,฀the฀accident฀will฀not฀be฀considered฀ at-fault,฀nor฀chargeable,฀if:฀(1)฀the฀accident฀was฀ caused฀by฀contact฀with฀birds,฀animals,฀missiles,฀or฀ falling฀objects,฀or฀(2)฀the฀car฀was฀lawfully฀parked,฀ or฀(3)฀the฀operator฀of฀the฀car฀has฀been฀reimbursed฀ by,฀or฀on฀behalf฀of,฀a฀person฀responsible฀for฀the฀ accident฀or฀has฀a฀judgment฀against฀such฀person,฀ or฀(4)฀the฀car฀was฀struck฀in฀the฀rear฀by฀another฀ vehicle฀and฀the฀operator฀of฀the฀struck฀vehicle฀has฀ not฀been฀convicted฀of฀a฀moving฀traffic฀violation฀ in฀connection฀with฀the฀accident,฀or฀(5)฀the฀car฀was฀ struck฀by฀a฀“hit-and-run”฀vehicle฀if฀the฀accident฀is฀ reported฀to฀the฀proper฀authorities฀within฀24฀hours,฀ or฀(6)฀the฀operator฀was฀not฀convicted฀of฀a฀moving฀ traffic฀violation฀in฀connection฀with฀the฀accident,฀ but฀the฀operator฀of฀the฀other฀vehicle฀involved฀in฀the฀

accident฀was฀convicted฀of฀a฀moving฀traffic฀violation,฀ or฀(7)฀the฀operator฀was฀operating฀a฀vehicle฀of฀a฀type฀ not฀eligible฀for฀rating฀under฀this฀Plan,฀or฀(8)฀the฀ insurer฀recovered฀80%฀or฀more฀of฀the฀insurer’s฀loss฀ through฀subrogation฀when฀it฀was฀a฀collision฀loss,฀ or฀(9)฀the฀accident฀resulted฀in฀a฀payment฀under฀ Personal฀Injury฀Protection฀or฀Additional฀Personal฀ Injury฀Protection฀Coverage฀and฀no฀payment฀is฀ made฀under฀the฀Liability฀or฀Collision฀Coverages,฀ unless฀the฀accident฀is฀a฀single฀vehicle฀accident฀in฀ which฀damage฀to฀property฀occurs.

Major฀violations฀include:฀(1)฀driving฀a฀motor฀ vehicle฀under฀the฀influence฀of฀intoxicants฀or฀drugs,฀

(2)฀manslaughter฀(whether฀or฀not฀“involuntary”),฀ reckless฀homicide฀or฀felonious฀assault฀arising฀out฀ of฀the฀use฀of฀a฀motor฀vehicle,฀(3)฀reckless฀driving฀ which฀results฀in฀an฀injury฀to฀a฀person,฀(4)฀failure฀to฀ stop฀and฀report฀or฀identify฀oneself฀when฀involved฀ in฀a฀motor฀vehicle฀accident,฀(5)฀operating฀a฀motor฀ vehicle฀without฀a฀valid฀operator’s฀license฀or฀during฀ a฀period฀of฀revocation฀or฀suspension฀of฀motor฀ vehicle฀registration฀or฀operator’s฀license,฀and฀(6)฀ operating฀a฀motor฀vehicle฀without฀the฀owner’s฀ authority฀if฀such฀operation฀results฀in฀a฀felony.

Minor฀violations฀include฀traffic฀law฀offenses฀ for฀speeding,฀stop฀sign฀and฀signal฀infractions,฀ improper฀turns,฀failure฀to฀yield฀right฀of฀way,฀and฀ similar฀offenses.฀฀A฀minor฀violation฀shall฀not฀be฀ counted฀as฀a฀separate฀incident฀if฀it฀occurred฀in฀ connection฀with฀a฀chargeable฀accident.฀฀If฀any฀ violation฀is฀subsequently฀dismissed,฀it฀will฀no฀ longer฀be฀considered฀a฀chargeable฀violation.

–฀3฀–

–฀4฀–

Each฀driver฀is฀assigned฀a฀Driver฀Record฀Level฀(DRL)฀based฀on฀their฀chargeable฀accidents฀and฀violations฀during฀ the฀past฀three฀years.฀฀If฀there฀were฀no฀chargeable฀accidents฀or฀violations,฀the฀Driver฀Record฀Level฀is฀Level฀1.฀฀ Otherwise,฀the฀DRL฀is฀increased฀as฀shown฀below฀for฀each฀chargeable฀accident฀and฀violation:

฀฀฀฀฀฀Incident฀

Initial฀Year฀

Second฀Year฀

Third฀Year

 

 

 

 

Minor฀Violation฀

+2฀levels฀

+1฀level฀

+0฀levels

 

 

 

 

Chargeable฀Accident฀

+3฀levels฀

+2฀levels฀

+1฀level

 

 

 

 

Major฀Violation฀

+5฀levels฀

+4฀levels฀

+3฀levels

 

 

 

 

If฀the฀incident฀occurred฀prior฀to฀the฀date฀of฀application,฀the฀DRL฀will฀be฀adjusted฀as฀if฀the฀incident฀had฀ occurred฀within฀one฀year฀prior฀to฀the฀date฀of฀application,฀and฀will฀decrease฀for฀each฀year฀the฀incident฀is฀ surcharged.฀฀However,฀the฀DRL฀will฀not฀be฀affected฀by฀an฀incident฀when฀the฀incident฀occurred฀at฀least฀three฀ years฀prior฀to฀the฀effective฀date฀of฀the฀current฀renewal.

The฀Driver฀Record฀Surcharge฀for฀each฀individual฀driver฀is฀based฀on฀their฀Driver฀Record฀Level,฀as฀shown฀in฀the฀ following฀table:

Driver฀Record฀Level฀

Driver฀Record฀Surcharge

 

 

 

1฀

0%

 

 

 

2฀

0%

 

 

 

3฀

0%

 

 

 

4฀

15%

 

 

 

5฀

50%

 

 

 

6฀

60%

 

 

 

7฀

70%

 

 

 

8฀

90%

 

 

 

9฀

110%

 

 

 

10*฀

140%

 

 

 

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀*฀Plus฀50%฀for฀each฀additional฀level฀above฀10

The฀accident฀surcharges฀apply฀to฀the฀vehicle฀the฀driver฀is฀assigned฀to฀rather฀than฀the฀vehicle฀involved฀in฀the฀ accident.฀฀

Surcharges฀will฀be฀removed฀if฀satisfactory฀evidence฀is฀furnished฀that฀the฀driver฀involved฀is฀no฀longer฀a฀member฀ of฀the฀household฀or฀will฀not฀be฀driving฀the฀car฀in฀the฀future.฀฀If฀that฀driver฀is฀insured฀on฀another฀State฀Farm฀ policy,฀the฀accident฀or฀violation฀will฀be฀considered฀in฀the฀rating฀of฀that฀policy.

–฀5฀–

The฀following฀chart฀illustrates฀the฀surcharges฀that฀apply฀if฀one฀driver฀had฀the฀listed฀driving฀records.฀฀When฀more฀ than฀one฀driver฀is฀assigned฀to฀a฀vehicle,฀the฀Driver฀Record฀Surcharge฀for฀each฀driver฀is฀added฀together฀to฀determine฀ the฀total฀surcharge.฀฀For฀example,฀if฀one฀driver฀of฀the฀vehicle฀had฀an฀accident฀in฀the฀past฀year฀and฀another฀driver฀of฀ the฀vehicle฀had฀a฀minor฀violation฀the฀surcharge฀for฀the฀initial฀year฀would฀be฀15%฀(=฀15%฀+฀0%).฀฀

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Surcharges

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Driving฀Record

Initial฀Year฀ Second฀Year฀

Third฀Year

 

 

 

 

1฀minor฀violation

0%฀

0%฀

0%

 

 

 

 

1฀chargeable฀accident฀

15%฀

0%฀

0%

 

 

 

 

1฀major฀violation฀

60%฀

50%฀

15%

 

 

 

 

2฀minor฀violations

 

 

 

฀฀฀฀Both฀occurred฀within฀past฀year฀

50%฀

0%฀

0%

฀฀฀One฀within฀past฀year฀&฀other฀one฀1฀year฀ago฀

15%฀

0%฀

0%

฀฀฀One฀within฀past฀year฀&฀other฀one฀2฀years฀ago฀

0%฀

0%฀

0%

 

 

 

 

2฀chargeable฀accidents฀

 

 

 

฀฀฀Both฀occurred฀within฀past฀year฀

70%฀

50%฀

0%

฀฀฀One฀within฀past฀year฀&฀other฀one฀1฀year฀ago฀

60%฀

15%฀

0%

฀฀฀One฀within฀past฀year฀&฀other฀one฀2฀years฀ago฀

50%฀

0%฀

0%

 

 

 

 

1฀chargeable฀accident,฀1฀minor฀violation

 

 

 

฀฀฀Both฀occurred฀within฀past฀year฀

60%฀

15%฀

0%

฀฀฀One฀within฀past฀year฀&฀other฀one฀1฀year฀ago฀

50%฀

0%฀

0%

฀฀฀One฀within฀past฀year฀&฀other฀one฀2฀years฀ago฀

15%฀

0%฀

0%

 

 

 

 

1฀chargeable฀accident,฀1฀major฀violation

 

 

 

฀฀฀Both฀occurred฀within฀past฀year฀

110%฀

70%฀

50%

฀฀฀Major฀violation฀within฀past฀year฀&฀accident฀1฀year฀ago฀

90%฀

60%฀

15%

฀฀฀Major฀violation฀within฀past฀year฀&฀accident฀2฀years฀ago฀

70%฀

50%฀

15%

฀฀฀Accident฀within฀past฀year฀&฀major฀violation฀1฀year฀ago฀

90%฀

60%฀

0%

฀฀฀Accident฀within฀past฀year฀&฀major฀violation฀2฀years฀ago฀

70%฀

0%฀

0%

 

 

 

 

1฀minor฀and฀1฀major฀violation

 

 

 

฀฀฀Both฀occurred฀within฀past฀year฀

90%฀

60%฀

15%

฀฀฀Major฀violation฀within฀past฀year฀&฀minor฀1฀year฀ago฀

70%฀

50%฀

15%

฀฀฀Major฀violation฀within฀past฀year฀&฀minor฀2฀years฀ago฀

60%฀

50%฀

15%

฀฀฀Minor฀violation฀within฀past฀year฀&฀major฀1฀year฀ago฀

70%฀

50%฀

0%

฀฀฀Minor฀violation฀within฀past฀year฀&฀major฀2฀years฀ago฀

60%฀

0%฀

0%

Additional฀surcharges฀apply฀for฀a฀higher฀number฀of฀incidents.

–฀6฀–

The฀following฀table฀shows฀some฀examples฀of฀how฀the฀accident฀surcharge฀works.฀฀These฀examples฀are฀not฀based฀ on฀actual฀premium฀amounts฀and฀consider฀only฀the฀effect฀of฀accident฀surcharges.฀฀We฀have฀assumed฀that฀the฀ policyholder฀has฀the฀accident฀records฀indicated฀and฀that฀the฀policyholder฀qualifies฀for฀the฀3-Star฀Discount฀in฀ the฀no-accident฀example.

A.฀ One฀vehicle฀insured.

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀including฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀including฀

฀฀฀฀฀฀฀฀฀฀฀Coverage฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀with฀฀฀฀฀฀฀฀฀฀฀฀฀surcharge฀for฀one฀

surcharge฀for฀two

฀฀฀฀฀฀฀฀฀฀฀฀

no฀accidents฀

chargeable฀accident*฀

chargeable฀accidents*

Bodily฀Injury,

฀฀฀Property฀Damage฀

฀$฀฀80฀

$฀฀96฀

-฀

$110฀

$฀฀96฀

-฀

$163

Uninsured฀Motorist฀

฀฀฀฀฀฀5฀

7฀

-฀

7฀

7฀

-฀

7

Personal฀Injury฀Protection฀

฀฀฀฀40฀

48฀

-฀

55฀

48฀

-฀

82

 

 

 

 

 

 

 

 

Comprehensive฀

฀฀฀฀25฀

30฀

-฀

30฀

30฀

-฀

30

Collision฀

฀฀฀฀50฀

60฀

-฀

69฀

60฀

-฀

102

TOTAL฀PREMIUM฀

$200฀

$241฀

-฀

$271฀

$241฀

-฀

$384

B.฀ Two฀vehicles฀insured.฀฀Accidents฀chargeable฀to฀the฀principal฀operator฀of฀vehicle฀number฀one,฀while฀ operating฀vehicle฀number฀one.

฀1.฀฀฀VEHICLE฀NUMBER฀ONE

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀including฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀including฀

฀฀฀฀฀฀฀฀฀฀฀฀Coverage฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀with฀฀฀฀฀฀฀฀฀฀฀฀฀surcharge฀for฀one฀

surcharge฀for฀two

฀฀฀฀฀฀฀฀฀฀฀฀

no฀accidents฀

chargeable฀accident*฀

chargeable฀accidents*

Bodily฀Injury,

฀฀฀Property฀Damage฀

฀$฀฀80฀

$฀฀96฀

-฀

$110฀

$฀฀96฀

-฀

$163

Uninsured฀Motorist฀

฀฀฀฀฀฀5฀

7฀

-฀

7฀

7฀

-฀

7

 

Personal฀Injury฀Protection฀

฀฀฀฀40฀

48฀

-฀

55฀

48฀

-฀

82

Comprehensive฀

฀฀฀฀25฀

30฀

-฀

30฀

30฀

-฀

30

 

Collision฀

฀฀฀฀50฀

60฀

-฀

69฀

60฀

-฀

102

TOTAL฀PREMIUM฀

$200฀

$241฀

-฀

$271฀

$241฀

-฀

$384

฀2.฀฀฀VEHICLE฀NUMBER฀TWO

฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀including฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀including฀

฀฀฀฀฀฀฀฀฀฀฀฀Coverage฀

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀Premium฀with฀฀฀฀฀฀฀฀฀฀฀฀฀surcharge฀for฀one฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀surcharge฀for฀two

 

฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀฀no฀accidents฀฀฀฀฀฀฀฀฀฀฀฀฀chargeable฀accident฀

chargeable฀accidents

Bodily฀Injury,

฀฀฀Property฀Damage฀

฀$120฀

฀$120฀

฀$120

Uninsured฀Motorist฀

฀฀฀฀฀฀5฀

฀฀฀฀฀฀5฀

฀฀฀฀฀฀5

Personal฀Injury฀Protection฀

฀฀฀฀60฀

฀฀฀฀60฀

฀฀฀฀60

Comprehensive฀

฀฀฀฀40฀

฀฀฀฀40฀

฀฀฀฀40

Collision฀

฀฀฀฀75฀

฀฀฀฀75฀

฀฀฀฀75

TOTAL฀PREMIUM฀

$300฀

$300฀

$300

*฀ The฀surcharge฀decreases฀each฀year.฀฀For฀the฀two฀accident฀example,฀the฀surcharge฀depends฀on฀the฀timing฀of฀the฀accidents.

–฀7฀–

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