Can Insurance drop you becuse you file

[jast]

I have a credit card with state farm and I also have my car insurance with them. I have had insurance with then for 10 years, I have 2 questions.

1 If I file can they drop or up my car insurance just because?

2 I have my insurance take out of my bank account each month. If I file can they start taking out the money I owe then on the CC ?

[jennordhavn]

I have a credit card with state farm and I also have my car insurance with them. I have had insurance with then for 10 years, I have 2 questions.

1 If I file can they drop or up my car insurance just because?

2 I have my insurance take out of my bank account each month. If I file can they start taking out the money I owe then on the CC ?

I'm not sure about number 2, but I think the answer to number 1 is it depends on the state you are in. Some states do not allow insurance companies to run your credit. I've also read that most companies won't cancel right away, but may when it's time to renew your policy. I have heard Geico is a good place for insurance if you have a BK.

Good luck.

[Minnymouth]

They cannot do a automatic withdrawl on the cc if you have not authorized it..... only the insurance on the auto.

They can't drop your insurance coverage because you filed bankruptcy, but they can raise it or refuse it when it becomes renewed again..... they can also consider you high risk because of the bankruptcy....

I have been with State Farm 35 years and my premium were unaffected by the bankruptcy...........

So by being with them 10 years you may be okay..........

[BassBoy]

Good question. If I may, Grange is another good company. We told our agent what was going on and he said it will not affect us. We have all of our policies with Grange and not one premium went up, nor are we paying higher premiums for our renters insurance, which we obtained after our discharge.

[kl030505]

I don't know about #2, but I have state farm (in MA) and I called them and specifically asked if filing for bk or bad credit could get my insurance cancelled or harm my chances of getting credit, and they do not check credit.

I can't imagine that it's possible to get dropped from any insurance company because of credit... in most states you HAVE to have insurance to legally register a car. They might be able to charge you insane rates (although, as I said, State Farm doesn't check credit), but I can't imagine bad credit makes you uninsurable... that just seems crazy to me.

[HHM]

I wouldn't worry about #1, and I highly doubt they can do what you suggest in #2.

After all, in reality, State Farm (the automobile insurance company) probably has very little to do with the actual credit card, (i.e. State Farm Bank). The card is probably simply a "branded" card, but as with all credit cards it is underwritten and serviced by some bank (in this case, State Farm Bank), they are really two seperate companies.

[jast]

Just got the form to sign that lets start farm take my insurance payment out of my account and it says. " I authorize state farm to take payment out of this account for Insurance and to re pay and loans" guess that sums it up I am not giving them my account info.

[magyar123]

Just got the form to sign that lets start farm take my insurance payment out of my account and it says. " I authorize state farm to take payment out of this account for Insurance and to re pay and loans" guess that sums it up I am not giving them my account info.

But you can attach a statement, and keep a copy of it, saying something to the effect that by revealing your banking information you, State Farm, are ONLY authorized to deduct the monthly insurance premium from this account, but NOTHING else.
If they do deduct anything else visit your bank and have them reverse any unauthorized withdrawels. And when you visit your bank show them the statement that you wrote up.