Auto Insurance Claims: Small damage repair, insurance company, accidents

Question
My friend's car was parked and hit by another car. The collision left some damage, nothing major but enough to need repair. He told me that because he has had a couple of previous accidents that he cannot file another claim or else his insurance company will drop his coverage. So he is forced to pay out of pocket. Is it possible that he is lying? I have never heard of an insurance company threatening to drop you from their coverage because of previous accidents, wouldn't the rates merely increase? It wasn't even his fault, his car was parked. This all sounds very fishy to me. Please Help! Thanks.

Answer
Hi Joe,

I don't understand what difference this makes to you. It's your friends car, his insurance, his decision to file a claim or not.

But, yes. It is possible for an insurance company to non-renew your policy for too many claims. Some companies will drop you after only one claim.

I hope this helps
Richard Hixenbaugh