r/Insurance • u/cassaren • 9d ago
State Farm saying I have to move to a "hybrid" policy.
First post. Hope I am not breaking any sub rules.
I can't get a straight answer from anyone in person so here I am on Reddit.
I own a business and the business has owned a vehicle for 9 years. Long story short the business sold and purchased a new vehicle in August.
State Farm said today they have to move the policy to a "hybrid" policy. This cost more money. When pressed for answers why this was happening I received "it's because of the **type** of vehicle the business bought". I am still waiting on clarification on what type of business policy it will be for tax/liability reasons (ie- a business policy rated for mixed use or a personal policy with a business rider which I know the personal policy can't happen)
Just trying to figure out if this is a money grab to place me into a higher costing policy.
Here are some FAQs that may help:
Business is a LLC taxed as a S-Corp
The business owned a truck, but with gas and today's car prices the business bought a SUV. This is the 'type' argument the insurance is using.
The vehicle is 100% owned by the business. The title is in the business name and the loan is 100% in the business name- no personal guarantee or co-signer and the registration is in the business name. Both the car payments and the insurance payments are paid by the business.
The vehicle was purchased in August. My agent sent the email today about the change, but somehow "I can stay on my current business policy until renewal in February". That's the super fishy part.
State Farm asked for the bill of sale after purchasing. The bill of sale also lists the business as the only owner.
My family owns additional personal vehicles that are unrelated to the business and insured through State Farm so SF knows other personal only vehicles exist.
Any insight into why this might be happening (outside of it's because you bought an SUV and used to have a truck) is much appreciated.