U.S. Sens. Elizabeth Warren (D-MA) and Josh Hawley (R-MO) are asking insurers why reports indicate an unprecedented share of home and auto claims are being closed without payments to policyholders.
In letters to State Farm, Allstate, USAA, Farmers, Liberty Mutual, and American Family, Warren, the ranking member of the Senate Banking, Housing and Urban Affairs Committee, and Hawley raised concerns about reports in the Wall Street Journal that over 44% of homeowner claims, and 45% of auto claims resolved in 2025, received no payout. Just a decade ago, the report claimed, only 36% of homeowners had their claims closed without payment, while only 35% of auto insurers had their claims closed without payment.
“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,” the Senators wrote. “At the same time as more home and auto insurance claims go unpaid, consumers are paying substantially more for both forms of coverage. Homeowners insurance premiums rose 70% nationally from 2019 to 2025. For an average homeowner with $350,000 in rebuilding coverage, their premiums increased by about 39% – or $760 – in 2025.”
The senators said the rising cost of policies, coupled with the lower likelihood of payouts are causing homeowners to go without insurance. Some 12% of Americans no longer have home insurance, the lawmakers said, up from 5% in 2019.
“However, the record profits of insurance companies raise questions about whether increasingly aggressive claims-handling practices, including tactics to delay payments, are contributing to higher margins,” the senators said.
Warren and Hawley asked the insurance companies to provide answers to their concerns by Oct. 16, 2026.