State Farm canceled me today
- Thread starter MnDroner
- Start date
My State Farm agent warned me that if I filed a claim within the first three months of getting coverage that my policy would be cancelled and not renewed. They’d cover the claim though regardless. I’m curious if the OP made a claim within the first 3 months of his policy?
Lucky you - they actually refunded mine as a prorated amount - roughly minus $15 for the approximate 3 months I had the policy.
The refund was a second letter so you might expect the same.
I can't complain at a full reimbursement for an investment of around $15.
They paid for two before canceling me! I don't blame them though. It was the only policy I carried with them and I made both claims in one year. Paid $60 Received $2200. Oh and they refunded part of my premium as well.
State Farm is a crappy company! They canceled us after 40+ years. Went with USAA since I’m a vet. Polished and gracious company!
Regulator247
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I think you're confusing this individual claim as being indicative of drone insurance claims when the entire insurance industry works this way.
My parents were self employed as independent insurance adjustor for close to 40 years. Being self employed meant you paid vastly more than being employed for a company when it came to health insurance premiums. My parents paid thousands of dollars each month for health insurance. Literally close to 17K a year. For health insurance.
So my parents were helping my sister move houses and my dad had a low boy trailer he used for hauling his tractor around. The rear of the trailer had two square metal ramps built into the trailer. My mom wasn't paying attention and she stepped off the rear of the trailer and ripped her leg open bleeding everywhere requiring over 50 stitches. So she filed a claim with the insurance company she had the same policy with. The same one her and my dad dumped over 150k over all those years.
Know what happened? The paid her claim. Then immediately dropped her policy. The same a$$holes that had been taking their money year after year dropped the for ONE CLAIM. Yeah it was over 30,000 but still. Insurance companies are shite.
Wanna know what my mom said when I got upset the dropped her on her first and only claim?
Its ok the entire insurance industry does this.
Bunch of philandering thieves. Don't get twisted. They'd sell their children's skin if it meant they'd get 2% more gains.
Long story short. Insurance in itself is bull$hit.
Not picking on you but let's use this as an example to those people in this thread who think State Farm cancelling a policy after a loss is a scummy thing to do. I'm not even sure I need to say anything else other then to quote the post. Nuff said.
I'm not sure you really are considering how insurance works and what it is. Here is the other side of the story.
Each and every year that health carrier accepted the risk of the policy limits. That is probably $100,000,000 vs $17,000 in premiums. Not one year was the insurance company not willing to accept that risk for that entire year. At the end of each year each party was 100% even. The contract was done. The risk ($1,000,000,000) was accepted for a premium ($17,000). Done deal. Now, one year the carrier is willing to accept that same risk for $17,000 but this year they collect $17,000 and pay out $30,000. It's _not_ $30,000 for $150,000. That is where people get confused... as if it's a dollar for dollar service. If that were true and your mother has a $30,000 bill a month into her first policy, the carrier would have paid around $1200 and your mother would be stuck with a $28,000 bill. Does that sound fair? It's how you think it works. Oh, your version only works when there is no claim right away. However, turn it around and all of a sudden you'd not agree.
So the carrier collected a premium _each_ each for a promise _each_ year. At the end of the year, that agreement was done. Fair is fair.
One year the carrier collects $17,000 and pays out $30,000. End of the policy, that agreement is done. At _any_ time your parents could have cancelled the agreement. They could have paid $1200, had a $30,000 and then just walked away. The carrier (which is a business for profit) would have lost $28,000. So why should they also not have a right to tell someone that they no longer want to enter into a new agreement? Why should it be that the customer can do this at any time but the carrier cannot? You'd consider it unfair that a company can simply choose not to enter into a new agreement? If you sold people widgets and one year you lost money do you think someone else should have the right to tell you that you _have_ to continue to sell those widgets at a possible loss?
What a _very_ good example of what I'm talking about? Simply look a few posts up. A person paid $60 to State Farm and State Farm paid out $2200. Two crashes within one year. What if after the first crash and payment State Farm, as a business, would have said... you know, it's likely that this person is going to crash again... let's cut our _losses_ and simply chose not to continue business with this person. Would have been the right call, right? Would have been a sound business decision, right? Would have been perfectly fair, right? But according to, State Farm should have been forced to continue doing business with this person after that first claim... and as well know... continued to loose a ton of money in the process. Is that how you'd run your business?
My purpose in this post is not to chastise you... your mother suffered a loss and you felt what the insurance company did was unfair. I get that. You'd hope that a carrier would see this a a small loss and continue to offer insurance. I get that. But making their own choice not to do so hardly makes then a "****" company. I'll also end this by saying that I've worked as a property/casualty adjuster for about 27 years now. But I also will tell it like it is. I have no reason to be bias as I'm not getting my bills paid in this forum.
Total loss on a policy always ends the policy. A new insurance policy would address the problem. The effort spent on this would be better spent asking right question of SF
Agree. Mine was one of first with suncorp and provided i can demonstrate that flight was flown legallly ie not a no fly zone, alt etc then its covered. Cost $12 a year extra as a portable home contents item. The first year free as they dony charge for revisions under $25.
Suncorp, GIO...I dont think you can buy a single stand alone policy. Its home contents?.specificed items
Broader cover than the DJI markup scheme which is a bitbof a scam imo
My guess is that the salesman simply insured this as a Personal Article (camera). When he/she does this, it doesn’t send a Red Alert to “Home Office”, saying WE ARE NOW INSURING A DRONE. With that said, if/when you file a claim, the salesman is not the same person that will Adjust your claim. The Adjuster has no incentive from a sales perspective. In the best interest of the company, he is likely going to advise the Home Office, “by the way, you are insuring a drone”, and Non-Renewal will be issued.
I’m guessing, if you force your agent to obtain something in writing from State Farm, the company will immediately send you your Non Renewal Notice. My suggestion is to keep it on the down low, until you need to use the policy. At this time, they are contractually bound to covering your drone (“Special Form” covers everything that’s not specifically Excluded). If you rock the boat I’m afraid you’re time with an Insured drone will be limited.
RolandW
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i wouldnt buy any insurance if it werent required,your always paying out more
ive had car ins for 46 years and 0 claims.
EarlyBird
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Insurance drone fliers may need to consider is public liability, one flyaway that causes personal or asset damage and the ensuing legal claim could bankrupt you. As to the loss of drone I'll continue to fly line of site and not try to break any distance records [emoji16]
Did I not say that I didn't blame them? That's like saying "no offense" just before calling me the N word. Yeesh!
Allstate dropped me after a no fault accident. They taketh your money and dropeth after a claim.
RolandW
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Blame that on politicians. Absent their interference, no seller can force anybody to buy something he doesn't want to buy.
jkirk
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wowography
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I am in NY, just started a State Farm Personal Articles Policy. During an initial phone conversation I explained it was a aircraft (drone) and less than 55lbs. I was told no problem, the drone has a $200 deductible. Once I brought my proof of purchase to complete the sale. I was informed there was no deductible. Seems like the underwriters knew exactly what they were insuring. This is my first SF policy.
Being forced to buy insurance...where have I heard that before?
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