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Can an insurance company drop you in the middle of your contract?
My wife has Sate Farm Insurance. We have a one year contract. Prior to the next payment she was told she was being canceld for an accident that involved a ticket. The other side filed a false police report and we are sueing for defamation and slander. The Company told us outright they were dropping us due to the accident. We have 5 months left on our contract. Can they do that?
The accident happened after we started the policy and was reported right away. Our policy is paid up till March.
I am also not interested in weather or not they do it. I am asking if an insurance company can break a contract. I know they are not ethical, I think everyone knows that.
2 Answers
- 1 decade ago
In most states, they cannot cancel you mid policy term without more reason than a claim. Did this accident happen before you took out this policy and did you happen to forget to tell them about it when you filled out the app?