If you've ever filed a claim only to be told there's no check coming, you're not alone. According to Senators Elizabeth Warren of Massachusetts and Josh Hawley of Missouri, an increasing portion of claims in the homeowners and personal auto lines now end without any payout, and they're demanding explanations. "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," they wrote. Warren, who is the ranking member on the Senate Banking Committee, and Hawley also pointed to record industry profits and questioned whether tougher claims tactics, including delaying payments, are padding margins.
The senators sent Oct. 2 letters to State Farm Mutual Automobile Insurance Co., Allstate Corp., USAA Capital Corp., Farmers Insurance Group, Liberty Mutual Insurance Co. and American Family Mutual Insurance Co. They asked for data on unsuccessful claims in homeowners and personal auto lines, an explanation of the factors that influence those claim outcomes, and disclosure of any material changes insurers have made to their claims processes over the past ten years.
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State Farm said by email that each claim is evaluated based on the "facts and the coverage purchased, and when a loss is covered," adding that some claims close without a payment because the loss falls below the deductible or the customer withdraws the claim. A USAA spokesman said claims can close without payment for a range of reasons and that "our focus is on helping members recover from a loss and handling claims fairly, promptly and with care." The other companies did not immediately respond. The senators also highlighted the pressure on households: homeowners insurance premiums climbed 70% between 2019 and 2025, according to the Federal Reserve Bank of Dallas, and the combination of higher costs and fewer payouts is pushing some people to drop coverage.
Rising premiums already strain budgets, and a higher chance of a denied or unpaid claim can change how much emergency cash you feel you need. Keep an eye on what data these insurers turn over and whether it prompts any changes to claims practices or pricing.
Claim denial rates are becoming a political issue, not just a business one. Join Market Briefs free and follow the pressure.
