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I heard that some companies cancel people's insurance if they have just one claim. Is this true?

It is very unlikely that any type of insurance would be canceled after you file a single claim. However, filing a claim could increase your premium on certain types of insurance. Your premium increase may be a percentage of the premium you were paying before the accident, or it may be based on a complex formula that assigns point values to various types of accidents. In most cases, your auto insurance policy will not be canceled unless you have a certain number of at-fault accidents within a given period of time.

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car insurance commentsI got my insurance pulled after tapping someones bumper parking and causing about $200 worth of damage, when Id been a customer for 5 years with no prior accidents.
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This car insurance question was asked on 3/24/2005
This auto insurance answer was last updated on 3/28/2005
Rated 4 out of 10 based on 3 votes.
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