State Farm canceled me today

[Marko9219]

Typical, want to take your premium but not keen on paying out when it all goes wrong!

Say "HUH"?? I read it as they did in fact pay out. I interpret this as "You crashed your drone. You must be a bad pilot. You then, are a bad risk to us. You are therefore cancelled."
I'd do the exact same. Smart business. Remember, they in fact are a business. Not a charity.

 

[floyd]

( mod removed ) for doing as they promised!

Wondering where they promised to cancel a solid customer because he used their service as it was intended. I wonder if State Farm cancels everyone who dares, has the audacity, the gall to make a claim. I'll bet they're on the verge of bankruptcy. Oh wait, they posted record on top of record on top of record profits last year. Yeah, I can see why a $1000 claim is worth dumping a customer. Raise his rates... sure. Drop him... bad business.

I've got their drone insurance too. Tomorrow I'll be calling them to see how they'll react if I, too, have the temerity to use their service as it is intended and put in a claim. So much for loyalty these days...

 

[floyd]

You obtained a policy for (I'll make up the number) $1000 worth of coverage for $60. You filed a claim and the company paid $1000. They have now fulfilled the terms of the policy. So it should be terminated. It makes no sense for them to then give you another free $60 for another $1000 worth of coverage. Make sense?

What makes no sense is State Farm offering a policy for $60 year to cover a $1000+ piece of equipment. Why should it be terminated? Why? Because he put in a claim? Don't people put in claims everyday? Are they all cancelled too? Of course not. Here's an idea... raise the rate or stop offering such a stupid policy.

 

[tcope]

Wondering where they promised to cancel a solid customer because he used their service as it was intended.

If I sell you my Mavic and am selling another, do I need to sell you this one as well just because you bought the last one? State Farm and the person had _one_ contract. When that contract is done neither is obligated to do any further business. It's State Farms choice and the person has a choice as well. The person agreed to pay $60 for State Farm to assume $1000 in exposure. State Farm then honored the contract and paid out $1000 for a $60 premium. This does in no way obligate them to take the same risk again.

Raise his rates... sure. Drop him... bad business.

State Farm is an admitted carrier. They are restricted as to how much they can raise rates. But also, as mentioned above, they have the _right_ not to assume a risk. You make it sound like they screwed the OP over by paying out $1000 for $60. Think about this... if they thought that they could make the $940 back in premium, why would they not do it? They made money by being smart. You don't think they know when they are going to lose money on a policy?

 

[tcope]

Here's an idea... raise the rate or stop offering such a stupid policy.

So you you think they would not do that if it meant making money? Trust me, insurance companies know when it's a losing battle. When someone pays them $60 and they pay out $1000 in less then a year, they know statistically it's time to move on. As a business are you saying that they should be obligated to assume risk that they don't want?

 

[MnDroner]

I'm not mad, hey I got new drone for 30 bucks. I find it funny however that they wouldn't want to make back some of that money by renewing the policy. I try to be pretty responsible with valuable stuff. First claim I had made in years on anything. BTW the drone crashed due to what I consider DJI's fault. It was first flight after the 104 firmware update. The drone took off flew for maybe 30 seconds and then the controller said disconnected, I had no more control over it, and I watched it fly away 200 feet before it hit a tree and came down 50 feet into the road. But that's now fixed on the new drone with 700 firmware permanently on it, and no more DJI updates Plus my auto and business is moving off State Farm this week to another company (with lower rates after calling around). Money I have now saved switching 2 cars and a small business policy would cover a new Mavic Guess its a loss for them. Kinda funny that the one time price of a drone replacement is more of a concern to them then the 1000's they were making off my other policy's

 

[Britcopinaz]

"my auto and business is moving off State Farm this week to another company (with lower rates after calling around). Money I have now saved switching 2 cars and a small business policy would cover a new Mavic Guess its a loss for them."

 

[Bendsum]

Filed a claim a few weeks ago. The agent that wrote my policy called me and asked if I was goin to buy another. I told her yes she said ok send me the info when you get it and we will update your policy. I guess I will find out soon if they keep me or drop me.

 

[BossBob]

State Farm can only afford to replace 1 drone for every 16 or 17 premiums they take from drone pilots, (and that’s not allowing for any profit or costs in setting up the policy), before this part of the business starts to take a hit. If someone has lost one drone chances are pretty good they’ll lose another unless they become more risk averse.

 

[tcope]

I find it funny however that they wouldn't want to make back some of that money by renewing the policy.

Like it or not, statistic show that people who have a loss such as this are more likely to have another. Think about it... how long did you have the policy before filing a claim? That puts you in a very high risk pool.

Plus my auto and business is moving off State Farm this week to another company (with lower rates after calling around). Money I have now saved switching 2 cars and a small business policy would cover a new Mavic Guess its a loss for them. Kinda funny that the one time price of a drone replacement is more of a concern to them then the 1000's they were making off my other policy's

The policy that you had on your drone is in no way related to your other policies. If _you_ choose to move those policies, that is on you. SF has no guarantee if they renewed the drone policy that you'd then keep your other polices with them. People move their auto policies all of the time. They lose one policy and gain another. What they could easily be left with is a very high risk drone policy and no other premiums from you. Would you pay extra on your auto polcies (more than $60?) just to keep a drone policy with State Farm? Take that auto savings and get a Personal Article policy with someone else. Though, this now may be difficuly as State Farm reports these losses to a database. In the end, you got $1000 for $60 and are no worse for wear.

 

[lweekspors]

Kind of inevitable. Considering how many crash and/or lose it, State Farm's probably making a loss.

Insurance companies never take a loss, what chinese don't own, the insurance companies do.

 

[Starz]

have been with st farm over 20 years. The cancellation of policy info was given to me at the start of the conversation when I initiated the policy. If I file a claim in the first year, cannot get renewal for three years after that. It’s possible that different agents just don’t provide all the info needed up front.
You should ask for those kinds of details to avoid the disappointment at a later time. Yes, they are in business to make a buck. If your not willing to participate in that venture,don’t give them your money. Sorry for your loss. I’ve had a similar experience with a truck that magically disappeared from a hotel parking lot in Las Vegas once. Over 3k in personal property lost. Got the truck back,but everything inside was never seen again. Lesson, if you don’t want to lose it,don’t leave it in a car or truck.

 

[chris765_2000]

Yep, had filed a claim this past fall (Oct) when I crashed my Mavic (total loss). Received a payout and bought a new Mavic. I contacted them and gave them the updated serial number of the new drone to continue with the policy. Today I received a letter from State Farm saying that my policy will NOT be renewed due to the fact that I had made a claim. Looks like State Farm is getting smart to the fact that its a no win policy on drones. At least my policy goes till April before I have no more coverage on it. BTW this is the first claim I have made on any Ins.policy I have taken out in 25 years with State Farm.

I'm a commercial lines insurance broker and in my opinion it is ridiculous that they are non-renewing your policy. Most commercial policies I've seen have an exclusion for drones which in some cases can be removed for an additional premium. What gets me is that you had been an insured with them for 25 years for which reason they have collected more than enough premium to pay the claim. I would talk with a manager and see if you can get the non-renewal rescinded if you can't find better coverage elsewhere. I use Geico for my personal insurance. They are a direct insurer and our personal lines department hates Geico because their pricimg is so competitive. You can also get discounts on your insurance if you bundle it meaning that you'd place all your insurance with one company.

 

[chris765_2000]

Kind of inevitable. Considering how many crash and/or lose it, State Farm's probably making a loss.

Then they need to ad an exclusion for drones to their policy. Its as simple as that.

 

[ScubaBob]

Yep, had filed a claim this past fall (Oct) when I crashed my Mavic (total loss). Received a payout and bought a new Mavic. I contacted them and gave them the updated serial number of the new drone to continue with the policy. Today I received a letter from State Farm saying that my policy will NOT be renewed due to the fact that I had made a claim. Looks like State Farm is getting smart to the fact that its a no win policy on drones. At least my policy goes till April before I have no more coverage on it. BTW this is the first claim I have made on any Ins.policy I have taken out in 25 years with State Farm.

I wonder if there would be a way that drone owners could pool their needs and purchasing power and form a group and get insurance only for their drones without having to have a homeowners, renters or auto policy with the same company. There are plenty of safe droners who would never have a claim but would like to have insurance "just in case". Other professions have group policies because individually no one wants to insure them.

 

[ReadyKilowatt]

Did your policy have any liability coverage? I'm not so much worried about insuring the drone because I have a pretty good "rainy day fund" saved up for broken toys. But liability for when the thing flies off and falls down on someone's roof then suddenly their 50 year old shingles are damaged beyond repair concerns me.

I joined the AMA mostly for the liability insurance but it's not really clear if that covers you when flying away from an AMA field. If/when I start flying professionally I'll probably use one of those hourly rate insurance companies but still need to have general liability so that's a whole other ball of wax.

 

[guest1023]

Yep, had filed a claim this past fall (Oct) when I crashed my Mavic (total loss). Received a payout and bought a new Mavic. I contacted them and gave them the updated serial number of the new drone to continue with the policy. Today I received a letter from State Farm saying that my policy will NOT be renewed due to the fact that I had made a claim. Looks like State Farm is getting smart to the fact that its a no win policy on drones. At least my policy goes till April before I have no more coverage on it. BTW this is the first claim I have made on any Ins.policy I have taken out in 25 years with State Farm.

25 years of premiums and a cancelled policy on a thousand dollar payout? Doesn't sound like a good neighbor to me.

 

[wa5tef]

I asked local State Farm about drone insurance and they supposedly checked with higher up management and was told that they did not insure drones! So, I added it to my group of policies with Farm Bureau but it has a $100 deductible. Luckily last year, my P4 suddenly slipped upside down and powered into the ground from 200 feet for no apparent reason and DJI of course ruled pilot error!!! Farm Bureau did indeed pay the claim but the $100 deductible came off the amount. I still retain this policy on the replacement drone.

I will check with State Farm again and see if they give a different answer.

Thanks,
Jim
WA5TEF.

 

[Starz]

I'm a commercial lines insurance broker and in my opinion it is ridiculous that they are non-renewing your policy. Most commercial policies I've seen have an exclusion for drones which in some cases can be removed for an additional premium. What gets me is that you had been an insured with them for 25 years for which reason they have collected more than enough premium to pay the claim. I would talk with a manager and see if you can get the non-renewal rescinded if you can't find better coverage elsewhere. I use Geico for my personal insurance. They are a direct insurer and our personal lines department hates Geico because their pricimg is so competitive. You can also get discounts on your insurance if you bundle it meaning that you'd place all your insurance with one company.

Not sure I understand what “commercial” has to do with this.

 

[wsteele]

Read the whole thread and on the basis of just drone insurance I understand their position. However, their corporate level adjuster probably does not see that you have had multiple policies over 25 years without a claim. A letter to AllState stating current policiy numbers in effect so they can verify they’re financially way ahead with you and a polite threat that you may take all your business elsewhere may sway them. Make it a letter or detailed email (although I recommend a letter) and not a phone call and not to the local agent. Good Luck.