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State Farm canceled me today

mikemoose55

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#82
it is not just about drones, it is about what insurance sees as a risk, another example if you get a certain breed of dog while under coverage and they discover this you will not get renewed. If you walk in already having a certain breed of dog you can not get insured.

If you make any claim that they feel will possibly happen again because of your actions you get dropped. It is all about protecting their money.
For us here in the states you may have seen the commercials for Farmer's insurance co.
Their by line goes "we know a thing or two because we have seen a thing or two"
not only do they watch they evaluate every situation in terms of their risk to the piggy bank.
look at your car insurance, you have speeding tickets or a history of crashing you get to swim in the risk pool and pay big bucks for coverage.

Not insuring drones is just a continuation of the same MO insurance has been operating under for a very long time. Drones are simply a new addition to the "IT COSTS US MONEY" list.
mikemoose55
 

RolandW

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#83
Ok - here's another side of the story.
Insurance is required to have liquid assets to cover any foreseeable losses. Period.
Insurance is at its heart gambling with actuaries stacking the odds in favor of the house.
Hurricane Andrew plows through southern Florida causing a lot of damage.
Those folks were covered and had paid claims for a long long time.
So anyway, the insurance companies come crying to Uncle Sam that they can't cover the catastrophic losses.
Wah!
So the taxpayers had top make up the difference.
Now - who do you reckon owns the biggest baddest and most expensive high rises in all major US cities plus a bunch in other countries.
Insurance companies. Personally I'd have made them put up a few on the market to pay their obligations.


First look: the Perimeter's sexy State Farm HQ in photos
Can you provide evidence of State Farm "crying to Uncle Sam" in Florida? Keep in mind that in a hurricane, a lot of damage is caused by flooding, which is not covered by for-profit insurance companies but by the nutty National Flood Insurance Program. Taxpayers are indeed on the hook for NFIP's red ink, but don't blame that on State Farm.
An insurance company, like any other business, has to make a profit or it will go bankrupt and be of no use to anybody. Absent government interference (which is rampant; don't get me started), insurance of any kind is provided by entrepreneurs at the lowest price and highest quality humanly possible, just as is any other good. For now, State Farm believes it can make a profit by insuring my Mavic for $60 a year with no deductible, and they have office buildings full of actuaries to make sure that belief is sound. Of course their experience going forward could change that.
 
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sheldore

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#84
Will the claim impact your future insurance renewal rates? I assume insurance carriers share claims detail?
Sorry to butt in: You are right. Some Insurances (One that currently have) will allow you a one time that if you make a claim, they won't increase your rate. But rates are adjusted annually according to the number of claims made by others, not necessarily by the non claimer. So in actual fact, rates do go up. As for including a drone in the policy it is always a risk. I prefer to fly my drone or model airplanes from our flying club field. Not much fun flying a drone there, you don't get to see the sceneries. The FAA restrictions are in place and the programming in the Mavics as you update gives you no choice, at least up here in Canada that's how it is. I fly visually and no goggles, (again limited use of the joy in flying a drone). All these restrictions put in please because earlier drone flyers were and still breaking the rules, flying safely and avoiding flying close to airports and commercial aircrafts, and invasion of privacy (where actually people shot down drones for flying too close to private property). Some drone flyers needs to be educated, because the few are spoiling the fun for the serious drone flyer who follows the rules.
 
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MichiganMavic

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#85
Don’t forget about the other people that have paid into the insurance pool. This is the same policy as camera gear. I’m sure there has been people that have had their cameras dropped, stolen, damaged, etc in the past. DSLR Cameras costs way more than these Drones and they still insure them.
I drive my car everyday , but do not fly but maybe once a week as weather allows.
IMO there is way more risk insuring cars, with all the electronics being played with while driving.
I have 7 vehicles and 3 homes insured with them. My 3 newer drones are now covered too. In a year I’ll probably cancel the MP and MPP as their value decreases. The Inspire will always be insured.
Only time will tell if they’ll keep insuring Drones.
In the mean time, it’s a small fee for a piece of mind for me.
 

Oconnb910

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#86
OMG I have read through this whole thread and 99% of it is speculation and some of the people that said they were dropped I'm kind of curious about because I have gone through the situation with State Farm and not only did they not drop me but allowed me to add on to my policy after my first claim! Not only did I readd my new mavic but shortly after I got a phantom 4 Pro Plus and they let me add that also along with all of its accessories! I'm not sure why people are getting so negative about this! It is a no-brainer to go and insure your drone with State Farm because even if you file at first claim it's still incredibly worth it! But I believe many people are casting negative BS stories about this whole thing! And I don't like that because our form is supposed to help our fellow drowners and this is a total helpful thing it is not helping.
 

RolandW

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#87
OMG I have read through this whole thread and 99% of it is speculation and some of the people that said they were dropped I'm kind of curious about because I have gone through the situation with State Farm and not only did they not drop me but allowed me to add on to my policy after my first claim! Not only did I readd my new mavic but shortly after I got a phantom 4 Pro Plus and they let me add that also along with all of its accessories! I'm not sure why people are getting so negative about this! It is a no-brainer to go and insure your drone with State Farm because even if you file at first claim it's still incredibly worth it! But I believe many people are casting negative BS stories about this whole thing! And I don't like that because our form is supposed to help our fellow drowners and this is a total helpful thing it is not helping.
So you were able to add your Phantom to your existing policy for no additional premium? I have been wondering how that works.
You make some good points. Anybody who doesn't like this deal can simply not take it, or if they have a policy they can cancel it at any time, for any reason, or for no reason at all. That cuts both ways, of course, so State Farm can cancel too, so long as they obey the language of the contract. That's the way freedom is supposed to work.
 
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RolandW

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#88
Customer satisfaction among homeowners who have suffered a loss is at an all-time high. This despite lots of natural disasters lately, where policyholders often expect miracles in response time, or don't understand what their policy does and doesn't cover because they haven't read it.
Granted, this story is in an insurance industry trade publication, but the numbers are from J.D. Power, a well-respected polling company with a reputation to protect. I'll bet the satisfaction of drone owners with State Farm's personal articles policy would be near 100 percent. What's not to like?
 
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#89
If somebody makes a claim for a $799 Mavic and you have a $500 deductible why would you pay $70 bucks for the special insurance. State Farm and others are fools to insure drones. The only thing you should worry about is having liability insurance in case you hit someone!

I personally hate State Farm for what they did to us. Thank God USAA took we senior citizens into their program. I hope you that have State Farm will always treat you fairly!
 

Classic flyer

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#90
The OP of this thread paid $60 and would have been paid about $1000. Lon paid $60 and was paid around $2000. How would this have worked out for them? No too well. I mentioned this above, insurance is not a dollar for dollar thing. It's for piece of mind that you won't need to come up with thousands of dollars all at once if you have a loss. So even if you don't file a claim, you are getting something. Yes, you could see this as just a "glass half full" point of view but it is accurate and, I think, the best way to consider the situation. Not paying for coverage and putting money in the bank if not always the best way to go. In this case you'd need to not suffer a drone loss for 16 years before you even broke even. 16 years of worry that you could crash/suffer a theft and lose $1000.
Savings, as with insurance, is a "ROLL OF THE DICE"
 

Classic flyer

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#91
Sorry to butt in: You are right. Some Insurances (One that currently have) will allow you a one time that if you make a claim, they won't increase your rate. But rates are adjusted annually according to the number of claims made by others, not necessarily by the non claimer. So in actual fact, rates do go up. As for including a drone in the policy it is always a risk. I prefer to fly my drone or model airplanes from our flying club field. Not much fun flying a drone there, you don't get to see the sceneries. The FAA restrictions are in place and the programming in the Mavics as you update gives you no choice, at least up here in Canada that's how it is. I fly visually and no goggles, (again limited use of the joy in flying a drone). All these restrictions put in please because earlier drone flyers were and still breaking the rules, flying safely and avoiding flying close to airports and commercial aircrafts, and invasion of privacy (where actually people shot down drones for flying too close to private property). Some drone flyers needs to be educated, because the few are spoiling the fun for the serious drone flyer who follows the rules.
Amen bro
 
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#92
Been with State Farm for about 20 years. Current Policies on house, two cars, camper and now my mavic.

When I set up the PA policy I asked about premiums if I filed a claim. He said "we don't charge a penalty for personal article. Now I would go out and crash it three times but you'll be okay."

That said if I crash, and get paid out it is still in State Farm's best interest to keep me.

Everybody here needs to take an actuarial course and understand the inevitable! You will be cancelled with a claim, too many claims or if they decide not to cover drones anymore.

I have 4 drones. I lost 1 in the Gulf of Mexico. If you need insurance you probably shouldn’t be flying a drone. It means you don’t have the skill or you don’t have the money to participate in this expensive sport. Insurance companies aren’t stupid and they are not in the business to lose money!

I would rather have a insurance policy for personal liability!
 
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Classic flyer

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#93
Everybody here needs to take an actuarial course and understand the inevitable! You will be cancelled with a claim, too many claims or if they decide not to cover drones anymore.

I have 4 drones. I lost 1 in the Gulf of Mexico. If you need insurance you probably shouldn’t be flying a drone. It means you don’t have the skill or you don’t have the money to participate in this expensive sport. Insurance companies aren’t stupid and they are not in the business to lose money!

I would rather have a insurance policy for personal liability!
True that flya
 

RolandW

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#95
Everybody here needs to take an actuarial course and understand the inevitable! You will be cancelled with a claim, too many claims or if they decide not to cover drones anymore.

I have 4 drones. I lost 1 in the Gulf of Mexico. If you need insurance you probably shouldn’t be flying a drone. It means you don’t have the skill or you don’t have the money to participate in this expensive sport. Insurance companies aren’t stupid and they are not in the business to lose money!

I would rather have a insurance policy for personal liability!
Excellent points. The venom directed at insurance companies is indicative of a generally anti-business climate promoted by politicians, who want us to see them as our saviors when in reality they are anything but. They can count on lots of votes from the economically illiterate any time they make another law that restricts companies' freedom to trade – or decline to trade – as they see fit. Employment laws, as another example, are slanted in favor of employees. A job, correctly understood, is nothing more than a trade between two consenting parties, but politicians have bamboozled people into thinking it should constitute a sacred promise on the part of the employer, while the employee should remain free to say "Take this job and shove it" any time he wants to. That's not right, any more than it is right to demand an insurance company not cancel you or raise your rates, while you retain the option of dropping the policy whenever you feel like it.
 
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Classic flyer

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#96
Excellent points. The venom directed at insurance companies is indicative of a generally anti-business climate promoted by politicians, who want us to see them as our saviors when in reality they are anything but. They can count on lots of votes from the economically illiterate any time they make another law that restricts companies' freedom to trade – or decline to trade – as they see fit. Employment laws, as another example, are slanted in favor of employees. A job, correctly understood, is nothing more than a trade between two consenting parties, but politicians have bamboozled people into thinking it should constitute a sacred promise on the part of the employer, while the employee should remain free to say "Take this job and shove it" any time he wants to. That's not right, any more than it is right to demand an insurance company not cancel you or raise your rates, while you retain the option of dropping the policy whenever you feel like it.
You shoulda been a preacher man...
 
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tcope

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#97
If you need insurance you probably shouldn’t be flying a drone. It means you don’t have the skill or you don’t have the money to participate in this expensive sport. Insurance companies aren’t stupid and they are not in the business to lose money!
How is flying skill going to prevent something like a theft? The personal article policy covers this. If you want to run the risk of having to pay $1000 out of your pocket if your drone gets stolen, that is your choice. For others, it's worth paying $60 and not worrying about paying. Or look at it this way... you could pay for insurance and as long as you had one total loss within 16 years, you'd come out better with insurance. It's actually even longer as $60 will get you around $2000 of insurance so you can be covering many other things for that same cost.

You talk about one person's loss and that insurance companies are in the business to make money. I'm not sure you are considering how insurance works.
 

tcope

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#98
Savings, as with insurance, is a "ROLL OF THE DICE"
Not when you understand what you are actually buying. It's only a roll of the dice if you see insurance as a dollar for dollar service. This is not what it is... not by a long shot. When you pay for insurance on your own items you are really paying for piece of mind. You now know that you don't need to come up with $1000 out of your pocket all at once if you have a loss. As I mention in the post above, you have this piece of mind for 16 years before you even have to consider it a "roll of the dice". Again, you are still getting something during that 16 years even if you never file a claim.
 
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Classic flyer

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#99
Insurance vs no-insurance...it's all a roll of the dice, if you get insurance and never need it you've spent $ on peace of mind, if you don't buy insurance and have a mishap then you spend $ for your damages....Hence the "ROLL OF THE DICE"
 

tcope

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Insurance vs no-insurance...it's all a roll of the dice, if you get insurance and never need it you've spent $ on peace of mind, if you don't buy insurance and have a mishap then you spend $ for your damages....Hence the "ROLL OF THE DICE"
"Roll of the dice" means a risk taken to achieve something. As you mention, there is no risk as there is no real loss either way (gain peace of mind or don't suffer a loss). Is it possible to spend more on insurance then you earn in the long run? Yes. But this would be a dollar for dollar situation and not what insurance is.

As far as spending more on insurance and never having a claim, which is as close to "roll of the dice" that is possible, it would take 16 years worth of rolls before you'd approach that type of situation.
 

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