I’ve heard that insurance companies can cancel me or raise my rates if I have a big claim. True or False?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 15, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Let’s assume you did not lie on the application, forget important medical history, or failure to pay the premium on time. If those assumptions are correct, and if you are with an insurance carrier licensed within the State of your residence, you cannot be cancelled, nor can your rates be raised for claims unless the carrier cancels everyone else, or raises everyone else’s rates at the same time and with the same amount applied to anyone else of your age, sex, and zip code. Even if the carrier drops the plan you are on, you are allowed to roll into the closest plan currently available for new sales in your State. Just be honest on the application, pay your bills on time, and know you are as secure as everyone else in your same carrier in your State of residence. Beginning in 2014, people with pre-existing conditions can no longer be denied insurance, all lifetime and annual limits on coverage will be eliminated, and new policies will be required to meet higher benefit standards.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption