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State Farm insurance cancellation
1871 31 2017-4-14
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Mike-PNW
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Just want to give people a heads up on getting SFI, My policy was just cancelled with them because my cliam i filed.
I crashed my Mavic and filed a claim a few weeks ago with only being insured ( only insurace is the drone with SF ) for less then 10 days. They paid my claim with no problems and now after a few weeks they decided to cancel me.
TOTALY UNDERSTANLABLE!.  My agent called to let me know and also said that they my reconsider the insuring of PAP of drones.
I understand that paying $36 for a year and filing a claim for $1000 is not worth it to them.  Get insurance while you still can.
2017-4-14
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FrequentFlyer
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Yeah, it seem like once so many claims are filed its going to be alot more expensive to insure.
2017-4-14
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DroneFlying
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My agent called to let me know and also said that they my reconsider the insuring of PAP of drones.

That's a bummer. I was expecting that they'd start raising the premiums at some point but didn't really expect them to stop writing the policies altogether. Then again, I suppose that the individual agents don't have the flexibility or information to set / adjust premiums.

Get insurance while you still can.

I think that's excellent advice for those who have the option. Thanks for the heads-up; sorry to hear that you're no longer covered.
2017-4-14
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SkunkWerxs
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Mike ,
          This is Typical behavior of a Legalized Extortion  insurance company it's not only SF all of them practice this method --- Make a Claim they pay you  / They drop you  / you find another insurer, they charge you more and the cycle will continue till they feel that the Income they are getting is more then the Payout
They Sux
2017-4-14
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NoSale
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There is another way to look at this.

The thread that geofox started on PAP included a spreadsheet where pilots who had obtained insurance through SF could update their information; state, cost, agent, etc.  I included my information on this spreadsheet and in the thread itself.

Last week, I received an envelope from my SF agent.  At first, I thought it was just a calendar or some agency advertising, and was just going to throw it in the trash.  But instead, I opened it to find a handwritten thank you note.  The agent said apparently the information I provided on a forum (this being the only forum I provided such information) lead to several others contacting the agency for drone coverage.  A $10 gift card was included (a net reduction to my premium!).

While I'm sorry to hear of the loss of your drone, I'm glad you were covered.  I know there will be many who believe a PAP claims will impact your premiums on other policies (even not with the same agency), and that eventually insurance companies will stop covering due to economic loss, I do believe there is a bigger unseen potential for PAP coverage of drones as being beneficial to the insurance industry.  The more insured not making a claim vs. insured filing claims, the greater statistically that collecting premiums will be economically feasible.  For example, if over time only 1 in 1000 insured pilots results in filed claims, the economic feasibility will be in favor of the insurance company.
2017-4-14
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DJIU+1F44D
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I am curious how much the estimate was or if you totally lost your drone. At what point does  SF considerate it a total loss?  
2017-4-14
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Mike-PNW
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DJIU+1F44D Posted at 2017-4-14 16:10
I am curious how much the estimate was or if you totally lost your drone. At what point does  SF considerate it a total loss?

It was a loss, Although i bought the fly more package but it was only the drone which was the loss and replaced.  My PAP was for $1300, They paid for replacement of $999. A loss is stolen, flyaway, sank in the river, crashing into a building in Sport mode.
2017-4-17
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Griffith
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I wondered when that would happen.
2017-4-17
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method007
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Yea that was only a matter of time.  The risk involved vs the cost was just insane!  I'm expecting prices to transition more towards calculations used to insure private planes.
2017-4-17
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DJIU+1F44D
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Thanks I am wondering how mine will turn out I am figuring I will get dropped as well.  I hit a tree top and sent it in for an estimate after a month of coverage. It was delivered Friday but not received  yet.  Arm broke off, main body is damaged, one motor is damaged, the gimble took a wack and is inop and the battery has some damage.  Does power up normal/connects and camera appears to work.
2017-4-17
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NoSale
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method007 Posted at 2017-4-17 11:40
Yea that was only a matter of time.  The risk involved vs the cost was just insane!  I'm expecting prices to transition more towards calculations used to insure private planes.

I think State Farm will survive this claim, and maybe even a few others that may come be made.  I suspect they are still way ahead of the game collecting premiums.........
2017-4-17
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geofox784
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SkunkWerxs Posted at 2017-4-14 06:19
Mike ,
          This is Typical behavior of a Legalized Extortion  insurance company it's not only SF all of them practice this method --- Make a Claim they pay you  / They drop you  / you find another insurer, they charge you more and the cycle will continue till they feel that the Income they are getting is more then the Payout
They Sux

"will continue till they feel that the Income they are getting is more then the Payout "

lol that's how insurance works.
2017-4-17
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geofox784
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NoSale Posted at 2017-4-14 06:28
There is another way to look at this.

The thread that geofox started on PAP included a spreadsheet where pilots who had obtained insurance through SF could update their information; state, cost, agent, etc.  I included my information on this spreadsheet and in the thread itself.

So great to hear this!
2017-4-17
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DroneFlying
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DJIU+1F44D Posted at 2017-4-17 14:30
Thanks I am wondering how mine will turn out I am figuring I will get dropped as well.  I hit a tree top and sent it in for an estimate after a month of coverage. It was delivered Friday but not received  yet.  Arm broke off, main body is damaged, one motor is damaged, the gimble took a wack and is inop and the battery has some damage.  Does power up normal/connects and camera appears to work.

I am figuring I will get dropped as well

Not necessarily. The OP mentioned that he'd had the policy less than 10 days and that it was his only one with State Farm, so it's possible that one or both of those factors influenced their decision. I've definitely seen others mention that they had filed a claim and received payment but with no mention of having gotten dropped.
2017-4-17
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DroneFlying
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NoSale Posted at 2017-4-17 15:45
I think State Farm will survive this claim, and maybe even a few others that may come be made.  I suspect they are still way ahead of the game collecting premiums.........

I think State Farm will survive this claim, and maybe even a few others that may come be made.  I suspect they are still way ahead of the game collecting premiums.........

I doubt they're very profitable if at all. Since they're selling these policies for $60 (or less) and writing $1,000 checks for each lost Mavic, that means that a loss of just one Mavic out of every 16 insured would result in them paying out about the same amount that they received in premiums. And that wouldn't leave anything to cover their overhead (salaries, etc.), much less allow them to make a profit.
2017-4-17
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DJIU+1F44D
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DroneFlying Posted at 2017-4-17 16:24
I am figuring I will get dropped as well

Not necessarily. The OP mentioned that he'd had the policy less than 10 days and that it was his only one with State Farm, so it's possible that one or both of those factors influenced their decision. I've definitely seen others mention that they had filed a claim and received payment but with no mention of having gotten dropped.

I wouldnt be upset at all if they drop me, frustrated at myself yes but not them.  I am gonna see how the claim works but I thought if the repair is near 600 or 700 dollars I would like to see if I SF would pay me for the repair and then me just buy another one and get the original back unpaired. I think in time parts will be more available. Pretty confident as long it just plug an play parts I can fix it. I will just have to wait and see,  its been delivered but has not been received yet.   
2017-4-17
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Silverado101980
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My agent told me that they would take the policy but if I claimed it they would pay for the repairs or replacement and more than likely do no more and cancel my the policy I'm good with that in my eyes I just hope it never comes to that
2017-4-17
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NoSale
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DroneFlying Posted at 2017-4-17 16:34
I think State Farm will survive this claim, and maybe even a few others that may come be made.  I suspect they are still way ahead of the game collecting premiums.........

I doubt they're very profitable if at all. Since they're selling these policies for $60 (or less) and writing $1,000 checks for each lost Mavic, that means that a loss of just one Mavic out of every 16 insured would result in them paying out about the same amount that they received in premiums. And that wouldn't leave anything to cover their overhead (salaries, etc.), much less allow them to make a profit.

Time will tell.  Apparently my agent got enough referrals from me to kick a few bucks back; further diminishing State Farm's return.

I'm being a little bit sarcastic, but its only because I've considered the math also, and personally don't think that State Farm will be paying claims on more than 1 in 16 insured, let alone 1 in 160.  But that's just my opinion and its not founded on any statistic.

Besides, every agent will do the same to new drone policy holders that they did to me; solicit additional policies on other property.  Insurance agencies aren't short of knowing how to make a profit.

The way I look at it, if I get coverage for a year or two, I'll have more than covered my risks.  Then I'll be on to the next level of drone technology.  Insurance is more for peace of mind than it is to cover anticipated or expected loss..........
2017-4-17
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Silverado101980
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NoSale Posted at 2017-4-17 17:25
Time will tell.  Apparently my agent got enough referrals from me to kick a few bucks back; further diminishing State Farm's return.

I'm being a little bit sarcastic, but its only because I've considered the math also, and personally don't think that State Farm will be paying claims on more than 1 in 16 insured, let alone 1 in 160.  But that's just my opinion and its not founded on any statistic.

I hope they wouldn't pull on me that I have a house,car,truck,boat,rv,golf cart and other personal articles. If they won't pay a claim on my little drone and I'm gone they get  about 5k a year from me I'll take it someplace else
2017-4-17
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DroneFlying
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NoSale Posted at 2017-4-17 17:25
Time will tell.  Apparently my agent got enough referrals from me to kick a few bucks back; further diminishing State Farm's return.

I'm being a little bit sarcastic, but its only because I've considered the math also, and personally don't think that State Farm will be paying claims on more than 1 in 16 insured, let alone 1 in 160.  But that's just my opinion and its not founded on any statistic.

I've considered the math also, and personally don't think that State Farm will be paying claims on more than 1 in 16 insured, let alone 1 in 160.  But that's just my opinion and its not founded on any statistic.

I'd love to be wrong about this and see State Farm continue to sell these policies for $60 indefinitely, but I just don't see it happening. I don't have any statistics either, but I'd bet that the ratio of drone owners who crash to drone owners overall is much higher than 1 in 16, and if that's correct then sooner or later they'll either raise the premiums or just stop selling the policies.
2017-4-17
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Carnage808
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I just called state farm (Hawaii).  At first, they said they do not cover drones, then the agent called back and said that if its used solely for personal, hobby use, it can be insured.  
But once I use it for business use, they no longer can insure it.  


2017-4-17
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Silverado101980
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Carnage808 Posted at 2017-4-17 19:39
I just called state farm (Hawaii).  At first, they said they do not cover drones, then the agent called back and said that if its used solely for personal, hobby use, it can be insured.  
But once I use it for business use, they no longer can insure it.

Define business if you take trade or barter they can't do anything about it. That's maybe what my agent did or didn't say free trade still works but better know how to tap dance if asked
2017-4-17
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geofox784
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Silverado101980 Posted at 2017-4-17 19:44
Define business if you take trade or barter they can't do anything about it. That's maybe what my agent did or didn't say free trade still works but better know how to tap dance if asked

If you use it in any way to make money (aka you need a 107 license) then they will not touch it. There are other policies for that, but they are much more expensive.
2017-4-17
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Carnage808
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Silverado101980 Posted at 2017-4-17 19:44
Define business if you take trade or barter they can't do anything about it. That's maybe what my agent did or didn't say free trade still works but better know how to tap dance if asked

Pretty sure business would be anything that generates income in their eyes.
2017-4-17
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laceyboy
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DroneFlying Posted at 2017-4-14 06:14
My agent called to let me know and also said that they my reconsider the insuring of PAP of drones.

That's a bummer. I was expecting that they'd start raising the premiums at some point but didn't really expect them to stop writing the policies altogether. Then again, I suppose that the individual agents don't have the flexibility or information to set / adjust premiums.

This is what State Farm agent and claim manager told me.
If you file a claim, once they paid you, they will drop that item. If you only have that item, which means your policy will be cancelled.
If you want to insure it again, you need to provide a new purchase receipt.
2017-4-17
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SkunkWerxs
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geofox784 Posted at 2017-4-17 16:25
"will continue till they feel that the Income they are getting is more then the Payout "

lol that's how insurance works.

geo ,
        Yes unfortunately that's how it exactly works lollll   
2017-4-18
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Mike-PNW
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laceyboy Posted at 2017-4-17 22:54
This is what State Farm agent and claim manager told me.
If you file a claim, once they paid you, they will drop that item. If you only have that item, which means your policy will be cancelled.
If you want to insure it again, you need to provide a new purchase receipt.

I did re insure my new Mavic with the new serial number, The outcome is the same for me. They are dropping me.. Although giving me three months before its official.

As for the guy that busted up his drone pretty bad,  at $600-$700 in repairs you might as well consider it a flyaway. and get a new one hassle free and much much quicker.
2017-4-18
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DJIU+1F44D
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Mike-PNW Posted at 2017-4-18 06:05
I did re insure my new Mavic with the new serial number, The outcome is the same for me. They are dropping me.. Although giving me three months before its official.

As for the guy that busted up his drone pretty bad,  at $600-$700 in repairs you might as well consider it a flyaway. and get a new one hassle free and much much quicker.

Thanks I think I will get a new one and then apply the damage money to the new one and have DJI send back mine unpaired. I hope it will work that way.  I am assuming mine is going to be over $ 500 the gimble wont move up or down,battier, body, arm, 1 motor. Little hesitant because I have seen some estimates on here that are crazy cheap.
2017-4-18
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NoSale
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Mike-PNW Posted at 2017-4-18 06:05
I did re insure my new Mavic with the new serial number, The outcome is the same for me. They are dropping me.. Although giving me three months before its official.

As for the guy that busted up his drone pretty bad,  at $600-$700 in repairs you might as well consider it a flyaway. and get a new one hassle free and much much quicker.

Are you saying that you were able to get your replacement Mavic insured under PAP, only to have SF to subsequently decide to drop your policy after you paid the premium for the new policy?
2017-4-18
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Mike-PNW
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NoSale Posted at 2017-4-18 06:36
Are you saying that you were able to get your replacement Mavic insured under PAP, only to have SF to subsequently decide to drop your policy after you paid the premium for the new policy?

I only paid one time ( first year $36 ). After i received my new Mavic i called them with the new serial number, basiclly to amend/update my personal articular.  Then two weeks later or so is when my agent called to inform me that i  was going to get a letter of being dropped , and that i was still covered for the next 90 days.
2017-4-18
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laceyboy
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Mike-PNW Posted at 2017-4-18 06:05
I did re insure my new Mavic with the new serial number, The outcome is the same for me. They are dropping me.. Although giving me three months before its official.

As for the guy that busted up his drone pretty bad,  at $600-$700 in repairs you might as well consider it a flyaway. and get a new one hassle free and much much quicker.

So you said your policy has been cancelled when you started your post but now you say they give you 3 month notification.
If I was them, I would drop it immediately to prevent insurer to file another claim.
I would like to ask when you insure your Mavic and when you filed the claim. Do they give you any reason to cancel your policy?
2017-4-18
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Mike-PNW
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laceyboy Posted at 2017-4-18 08:57
So you said your policy has been cancelled when you started your post but now you say they give you 3 month notification.
If I was them, I would drop it immediately to prevent insurer to file another claim.
I would like to ask when you insure your Mavic and when you filed the claim. Do they give you any reason to cancel your policy?

Correction, Im being canceled for filing the claim.  SF told my agent that they were sending me a letter of cancellation and that he want to give me a heads up. Agent told me it is because of starting a new policy and then filing a claim soon after. He told me i will still be insured until June.

And i agree, They should just drop me immediately.
2017-4-18
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