I was reading (unfortunatley don't recall where, too many different sources during the day today, and it could have been any of them) of a poor customer that had to file a couple of Home owner's insurance claims within about a years time (couple = no more than 3 claims) and received notice that after having been a customer for many years, her policy was being dropped by the provider.
I've experienced similar problems myself. Back in 1999, after a freak snow-storm in the D.C. area, I basically totalled my little automobile when I spun out and did donuts in the middle of a busy thoroughfare. Thankfully there were non injuries, and no other vehicles were involved, but a hard smack against a curb did enough damage to my little car to require more repair work than the car was really worth. The insurance company paid for the repairs though, and I was left with a vehicle that was virtually worthless since the doors never sealed properly, even after multiple visits back to the repair shop and even with a guarantee from the insurance company to make things as good as new.
That accident was my second within about 16 months, the first having been a case of a resident of the trailer park where I live coming in the entry/exit to the park 3/4 of the way into my half of the road as I merged into the roadway to get into the roadway and head to work. I filed a claim because at the time my vehicle was then only about 1 year old, and the damage that was done to my car, though relatively minor and cosmetic was on the fog lamps and undercarriage. (Not terribly expensive, but still it was a claim).
My long time insurance provider, they of the farms in the states, sent me notice as renewal time rolled up after the second accident that I was being dropped as a customer. I had been with them for approximately 12 years at the time. I'd had a minor wreck many years before, and my wife had a fairly major one more recently, though still a few years back. I was told I could switch to MAIF (if you know what that is, it's insurance for uninsurable motorists, provided by the state of Maryland at a cost of a kings ransom), but couldn't stay on the policy I had for years. My wife was welcome as a customer, but I wasn't.
I tried to discuss it with the insurance agent/sales persons, but they weren't interested in interjecting. Even as I argued that the company was at a break even point with me given my 12 years of prior payments, it wasn't enough. Even as I argued that the company would have been smarter to raise my rates and keep me as a customer so I could pay them back for the payouts they had just made on my behalf. Nope, they had to drop me.
I wound up calling up another provider and got coverage for my wife and myself, even with a few dings on my record. I was amazed, as the company I went to had a reputation as one which wasn't interested in anyone without a perfect record, but they had been advertising that they'd work with people who had a few dings on their record, and I took up their offer. Now I smile every time I see a little lizard on the TV driving his car and walking into the office as the employee of the month.
I really generally despise insurers. No slight intended against people that work for them, but the premise as always seemed to be one of paying for something you were never really gonna be able to get your money's worth from. If you file a claim, your rates go up. If you don't file the claim and pay for something yourself, then you wasted your money paying premiums. It's a no win situation.
With that said though, I see worksmen comp. as a very necessary evil, and I am not at all pleased that there are too many people out there gaming the system and causing problems for innocent victims. I hope that these criminals share a cell block with the Ken Lay's of the world and even more so hope that once locked up, someone loses the key.
