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Complaint 3 of 3 in "Chargeable Accidents & Points"

Insurance Carrier: State Farm
State: Michigan

Consumer Complaint:

What is the law and time frame on a insurance point system? I will be dropped from my insurance company within 30-days for making 3 claims. Why do we have insurance if they can drop you? What the purpose? How do I get more insurance? Who do I get help? Why can they do this to me?

Insurance Expert Answer:

The purpose of insurance to to share or distribute the financial impact of risks that randomly occur, across a group of people with reasonably similar risk characteristics. It is not designed to forever bear the consequences of paying for the most careless or risk prone members of society. Once someone has had a series of accidents, the carrier decides it does not want to have you as a customer. Your policy was for a fixed term, often a year. You can drop the policy. They can drop you. You're not married to each other for life. In most circumstances there are some companies still willing to insure substandard risks at a preium price.