Can Your Auto Insurance Drop You After A Claim?

Your insurance company has a right to drop you after a claim. They have no there’s no legal obligation for the insurance company to keep you as a customer. I’ve had people call us. So, I’ve been with this particular company for 30 years.

I made a claim and they dropped me. That’s how they are. I just told people there are many insurance companies out there. I mean, it’s a competitive market. They want your business. Go out and shop it out to another company. Do they like what would be the reasoning there? Obviously the claim, but after that do they think you’re too high risk?

Well I don’t know insurance companies, each company has their own set of underwriting standards and insurance companies will drop you they could be for various reasons. I mean I’ve seen people drop for no reason. I mean who knows how they operate. To me these are profit driven companies and they’re looking at they’re assessing their risk and it’s a risk assessment type operation and they’re looking at you as a maybe a risk they don’t want to accept.

Maybe you’re into your 80s and they now have data where people you’re just a high risk. You’re 85 or 89 or 90 and you’re a high-risk driver and they just decide they don’t want to insure people who are 90 years old anymore. So they’ll drop you. And that’s legal? That’s legal. It’s a business. It’s a private business and you’re a customer. They don’t want to insure anybody over 90. They don’t have to ensure anybody over 90.