I've had State Farm Insurance for my business for the last 13 years. I also have 3 cars and my house insured under them along with life insurance for myself and my wife.

Last January my business was robbed at gun point and I made necessary claim to recoup my losses. After the hefty deductable, I received 1000.00. That is less then what I had lost that day.

Today I get a letter letting me know that my business insurance will be cancelled in Febuary. After 13 years of 800-1200/yr(due to increasing insurance rates), they will cancel me for making ONE claim for robbery. I'm really lost for words.

What is insurance for if you can not even count on them to protect you? I can understand if I was getting knocked off every month, but ONE claim in 13 years?

Because of this reason I will cancel my insurance for the 3 cars, life insurance for myself and my wife and my home tomorrow, and go with someone else.

How is this even ethical? What ever happened to State Farm being there for you? I guess they have no problem padding their pockets with "free" money, but as soon as they have to give a fraction of it back, they will cancel you.

End rant...

What do you guys think of my situation and does this sound ethical to you?

Opinions would be appreciated.

 

Sounds like something you would want to take up with a lawyer for consultation. I have no personal experience with State Farm, but for them to drop you after one claim seems a bit ridiculous.

For vehicle insurance I'm using USAA, but I'm not sure if they are open to civilians or not. Btw I'd avoid Geico if you hate what you're dealing with SF right now. My friend went through hell with them.

 

guess what---welcome to the big brother holding company. mandatory insurance feeds the ins companys kids and his fat wallet---so he can buy a congressman and some senators for a new mandatory insurance to be placeds on,.,.,,.one of the 3 biggest lobbies in this usa---mandatory extortion payments---insurance..give ya nothing and takes yer dough ...great racket....i use the cheeepest one i can get online.......

 

I agree with lifegrddude. Avoid Geico. As far as State Farm goes, about 2 and a half years ago some friends and I were driving back from Arby's when some kid on the other side of the road loses control or something crosses over the middle turn lane and slams into us head on. The van we were in was completely totaled the kid's corolla was totaled, hit my face against the steering wheel. Ended up needing a bunch of stitches in my chin, inside my lip, nose, etc. The kid who hit us died from not wearing his seatbelt they say. After all was done there were at least $8000 in medical bills. Finally after over 2 years we get money from State Farm. I know it's normal for things like this to take a long time, but they all really screw with you.

Another person my mom works with was in an accident. Someone rear ended her. Smashed up the back of her truck. Now the insurance doesn't want to pay for it claiming things like the muffler and such couldn't have been ruined in that collision and that they were obviously already ruined. Oh and the insurance company also stopped paying for a rental car for the woman. So she has no vehicle as the insurance won't pay for a rental and the insurance won't pay the rest to repair her truck.

 

That sounds pretty unethical to me. My parents used State Farm and Geico for years, and both insurance companies screwed them pretty bad. I personally use Liberty Mutual, and am very happy with them. In September of 07 I rolled my first Z as a result of a Continental Bravarus tire blowing out on the highway at 75 mph. Granded I only had liability so they didnt cover the car, but they did cover the medical bills (chiropractor and such). I still use them and highly recommend them.

 

That sounds pretty unethical to me. My parents used State Farm and Geico for years, and both insurance companies screwed them pretty bad. I personally use Liberty Mutual, and am very happy with them. In September of 07 I rolled my first Z as a result of a Continental Bravarus tire blowing out on the highway at 75 mph. Granted I only had liability so they didnt cover the car, but they did cover the medical bills (chiropractor and such). I still use them and highly recommend them.

 

Thanks to everyone for their suggestions. I'll be making necessary changes in few days. They ended up reversing their decision once I threaten to cancel all my policies with them ranging from 3 cars, home, and life insurance for myself and my wife, but I still have a bad taste in my mouth. I realize most insurance companies are pretty much alike, but I just don't want to give state farm any more of my money.

Thanks again for your opinions.

 

state farm has always been fine for me, but i don't blame you for switching everything over now. they would do the same thing to your house and your cars!

 

I've had State Farm for about 8 years. I've had good dealings with them so far. My wife wrecked her 2000 Blazer 4X4 a few years ago. Even though the repairs ended up $900 over the total amount, they still fixed it with a $500 deductable. It drove better that ever after that. policy didn't go up. Last year another claim on it after a guy in a stolen truck damaged a fender and cracked the windshield. This time it was an uninsured motorist claim with a $100 deductable. Still no raise. Now last week She hits another telephone pole and wipes it out. They just settled yesterday after only a week for a fair market value ($4600), paid off the rest of the loan and sent us $3200. The next time I'm not sure if they will reinsure her on her new vehicle or not. We'll see.

I know everyone hasn't had such good luck with them. I've heard many horror stories.