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Warren and Hawley Question Insurers Over Unpaid Claims
Two U.S. senators are asking six insurance companies why more claims are being closed without payments.
They want information about how often this happens and what causes it.
They are also asking whether insurers have changed how they handle claims over the past ten years.
The senators worry that some companies may be making it harder or slower for people to get paid.
State Farm says some claims do not get payments because the loss costs less than the deductible or the customer takes back the claim.
The senators also say insurance prices have risen, and some homeowners are choosing to go without insurance.
A report from the Dallas Federal Reserve said homeowners insurance premiums rose 70% between 2019 and 2025.
Senators Elizabeth Warren and Josh Hawley wrote to six insurers on Oct. 2 about a rising share of auto and homeowners claims closed without payment.
They asked for figures on unsuccessful claims, reasons for them, and changes to claims-handling policies over the past decade.
The senators said record insurer profits raised questions about whether aggressive practices, including payment delays, were boosting margins.
State Farm said claims are assessed according to the facts and purchased coverage; some close without payment because losses fall below deductibles or customers withdraw claims.
The senators said rising premiums and lower payout likelihood are leading some homeowners to drop insurance; a Dallas Fed report found premiums rose 70% from 2019 to 2025.
- Who
- U.S. Senators Elizabeth Warren and Josh Hawley, and six insurers: State Farm, Allstate, USAA Capital, Farmers Insurance Group, Liberty Mutual, and American Family.
- What
- The senators asked insurers for information about claims closed without payment and their claims-handling practices.
- Where
- United States.
- When
- The letters were sent Oct. 2; the year is not specified.
- Why
- The senators are concerned about the rising share of claims closed without payment, insurer practices, and the effects on policyholders.
Senators' concerns
Insurer response
Claims closed without payment
Senators' concerns
Warren and Hawley said the growing share of claims closed without payment raises questions about whether consumers can rely on insurers after emergencies.
Insurer response
State Farm said claims are evaluated based on the facts and the coverage purchased, and that some claims close without payment because losses are below deductibles or customers withdraw them.
Claims practices and profits
Senators' concerns
The senators questioned whether aggressive claims-handling practices, including delays, contribute to insurers' higher margins.
Insurer response
The article reports no direct response from the other insurers and does not state that State Farm addressed the senators' concerns about margins.
Key facts
- Insurers contacted
- Six
- Letter date
- Oct. 2; year not stated
- Insurance types
- Homeowners and personal auto
- Information requested
- Unsuccessful-claim figures, factors affecting claims, and material claims-policy changes over the past decade
- Premium increase
- Homeowners insurance premiums climbed 70% from 2019 to 2025, according to a Federal Reserve Bank of Dallas report
- State Farm explanation
- Claims may close without payment when the loss is below the deductible or the customer withdraws the claim
Quotes
Elizabeth Warren and Josh Hawley
US senators who wrote to six insurance companies about claims closed without payment.
“The growing share of both homeowners and auto insurance claims resulting in no payment raises serious questions about whether consumers can trust their insurance companies to hold up their end of the bargain when disasters or emergencies occur and affect their most basic essentials: their home and car.”
livemint.com
Sources
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