Will Claims Impact the Renewal of My Personal Auto Policy?

A Western National Personal Auto policy represents our promise to you that we will pay your covered claims promptly and fairly. Although that’s our most important commitment, it is not the only one we make to you. We also promise not to surcharge your Personal Auto policy as the result of your accidents, violations, or claims. However, offering a renewal of your Personal Auto policy may be impacted by claims and violations. Most companies will refuse renewal of a Personal Auto policy after multiple accidents and/or violations occur in a three-year period, subject to State Department of Insurance requirements.

Money used to pay claims comes from the pool of premium collected from all policyholders. When claim payments and expenses exceed an acceptable amount of pooled premium, an insurer is obligated to raise rates to ensure funds are available to pay future claims. Policyholders that have multiple claims put a disproportionate strain on premium dollars and cause rates to increase for all. In order to provide coverage at a fair price, it is sometimes necessary to refuse renewal based on claims or violations. Western National renews the vast majority of policies each year and adheres to state requirements for non-renewal when it becomes necessary.