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Will State Farm cancel my insurance after 3 claims?

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The number and amount of your liability insurance claims are kept on record for a period of 7 years. This includes claims against your home insurance as well as auto insurance and any other liability policies you have, such as an umbrella policy. Insurance companies can use this information to determine when a particular customer's risks outweigh the benefits of providing insurance to them.

If you filed 3 claims in a relatively short period of time, or if one or more of those claims was for a relatively high amount, your current insurance company may decide not to renew your policy at renewal time. They could decide to terminate your policy completely, but most insurers will wait until renewal, when the policy comes up for review.

Contact the customer service department and ask them for a reason regarding your cancellation. With that information in hand, you can then decide whether you want to appeal the decision. Unless you have definite reasons for sticking with this company, you may find it easier to simply switch before the cancellation is effective.

To switch insurance companies, or to find a replacement provider if your homeowner's policy has been canceled, start with a brokerage website like this one. You will be able to get quote from multiple leading insurers, to help you get the best rates available. Since the quotes come from different insurance companies, you cannot get this type of comparison when shopping through a dedicated insurance company, only when you deal with a broker.

answered Jun 24, 2014 by anonymous
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