Senators Warren and Hawley Press Six Big Insurers on Home and Auto Claims Closed Without Payment: What Policyholders Should Know

If you've ever filed a claim and walked away with nothing, you're not alone, and Congress is now asking why.

Sen. Elizabeth Warren, a Massachusetts Democrat, and Sen. Josh Hawley, a Missouri Republican, are asking six of the country's largest home and auto insurers for data on claims that were closed without any payment. The Senate Banking Committee's Democratic staff announced the letters on Monday, Oct. 5. Claims Journal reported that the letters were dated Oct. 2.

The insurers are State Farm, Allstate, USAA, Farmers, Liberty Mutual and American Family. The senators asked for answers by Oct. 16.

What the senators are asking about

According to the senators' announcement:

• 44% of home insurance claims went unpaid in 2025, up from 36% a decade earlier.
• 45% of auto liability and medical claims went unpaid last year, up from 35% ten years ago.
• Homeowners insurance premiums (the price you pay for coverage) rose 70% nationally from 2019 to 2025.
• 12% of Americans lacked home insurance in 2024, compared with 5% in 2019.

Insurance Journal noted that the unpaid-claim figures had been reported earlier by The Wall Street Journal.

"When consumers purchase insurance, they reasonably expect their insurance coverage will protect them when disaster strikes or an accident occurs," the senators wrote.

What the insurance industry says

Insurers argue that "closed without payment" doesn't always mean "denied."

State Farm said a claim may close without payment when the amount is below the customer's deductible or the customer withdraws the claim, according to Claims Journal. A deductible is the amount you pay out of pocket before insurance kicks in.

The National Association of Mutual Insurance Companies (NAMIC), an industry group, said other common reasons include flood damage, which standard home policies usually don't cover, and claims missing documentation. NAMIC said insurers closed 7.35 million homeowners claims with payment in 2024, according to Insurance Journal.

Why this matters now

Home and auto insurance have become some of the fastest-rising bills for many families. When premiums climb and claims don't pay, people may wonder whether coverage is worth it. The letters are a request for information, not a new law, so nothing changes for policyholders right away. But the answers could shape future rules.

What this means for your wallet

• Know your deductible: If repair costs are close to your deductible, a claim may pay little or nothing. Consider getting a repair estimate before filing.
• Read your exclusions: Most home policies exclude flood and earthquake damage. If you live in a risky area, ask about separate coverage.
• Document everything: Take photos or video of your home and belongings now. After a loss, photograph the damage, keep receipts for emergency repairs and save every email and letter.
• Ask for reasons in writing: If a claim is denied or closed without payment, you can ask the insurer to explain why in writing and point to the policy language.
• Know where to turn: If you think a claim was handled unfairly, you can file a complaint with your state's insurance department, which regulates insurers.
• Shop around at renewal: With premiums rising, comparing quotes from several insurers each year may help you find better value.

This article is for education only and is not financial advice. Everyone's situation is different.