Your question in full: Our son had two claims on our insurance in 2010. We are being canceled as of July 28, 2011, due to these claims. These were the only two claims we've ever had. I thought laws had been passed to keep insurance companies from canceling insurance on people due to claims. This is an insurance policy in the state of Missouri.
Some states have laws or rules in place that keep car insurance companies from canceling or non-renewing your policy except for specific reasons. States insurance regulators then help to make sure insurers follows the state laws. Missouri, however, doesn't have a law in place that can help your situation.
The Missouri Department of Insurance (DOI) says that they have very limited authority related to the standards a company sets to determine whether or not they wish to sell consumers a car insurance policy.
A Missouri DOI representative told us that all car insurance companies are required to give 30 days' notice of their intention to non-renew the contract, and to provide you, the policyholder, with specific reasons as to the action they are taking (at renewal).
Beyond the notification requirement, car insurance companies in your state follow their own underwriting guidelines with regards to the non-renewal or cancellation of a policy. Car insurance underwriting guidelines determine how many claims are allowed within a certain time period for the policy to continue.
It's not unusual for a car insurance company to non-renew a policy when you've had two or more an accidents (or claims) within a 36-month period. So, even though you went years without any claims, unfortunately, there is no state law saying that your car insurance company can't drop you after having two claims within such a short period of time.
While your current car insurance has found that your family is too much of a risk to continue to insure (due to what they see as excessive claims), there are plenty of other auto insurance providers that will offer you a car insurance policy.
Due to your claims history, which other insurers can see, a new policy may cost more, but by shopping around you will find coverage. And it's possible that you may actually find a better car insurance rate for your family's insurance policy than what you are currently paying.