The second factor in pricing insurance products is loss history (claims presented against the policy form). This can be a difficult number to compute, since the size of a claim is never truly known until the file is closed. Although insurance companies are pretty good at settling small claims—the costs are generally straightforward, and most parties just want to get on with their lives—closing the file on a large claim can take many years, most of them spent doing the following:

From Erie Pennsylvania. I am writing this in behalf of my mother. In Feb of 2008 she was backing up in a parking lot at a local business and because she had just put a tow hitch on her truck did not put into consideration the extra length that it added to her truck put a dent into another truck that had been parked. On her statement it was worded that she drove into a parked vehicle. In feb of 2009 she was visiting friend at a apartment complex that her friend owns and was backing out of her parking spot which was on a slope and because of the winter conditions slid into her friends car. It is now feb 2010 and they are just now telling her that her insurance will not be renewed......??????? Unreal. Her insurance adjuster Gene S has taken over a week now to explain the situation to her.

State Farm in Wilsonville, OR has been randomly increasing my rates without notification. I first discovered the increase in October of 2009. I followed up with them in November as my month rolls over toward the end of every month. The agent gave the excuse that there was a discount attached to my plan that they had forgotten to remove. Again in January they increased my monthly rate.

I emailed Brain K on 02.26.10. His response contradicts the insurance information his agent provided me back in November 2009.
He also goes on to imply that because we were not able to meet for one reason or another they increased my rates. The kicker is that the last meeting, he canceled and has made no attempt to reschedule.