(MONEY Magazine) – Ron Sladon Sr., 63, of Lexington, Ky. (below) learned his car insurer wouldn't renew his policy after he recently filed $2,500 in claims for two accidents -- neither of which were his fault. ''I was outraged, especially because I haven't had an accident in over 20 years,'' he says. Many more Americans are hearing similar news as auto and homeowners insurers are choosing not to renew coverage for their policyholders. In April, for example, Allstate announced that because Hurricane Andrew cost the company $1.7 billion in losses, it does not plan to renew homeowners and tenants policies for 25% of its 1.1 million Florida customers. Some insurers are trying to pull out of states entirely or are planning to stop writing policies there. Since last summer, at least 28 homeowners companies, including Prudential, Travelers and State Farm, have asked regulators in states such as Connecticut, Florida, Hawaii, New Jersey and New York to let them curtail business. It's generally legal for an insurer to drop a policyholder without cause when his or her contract is up. But Robert Hunter, president of the National Insurance Consumer Organization of Alexandria, Va., says seven states ban insurers from not renewing auto coverage just for making a claim: California, Hawaii, Massachusetts, Michigan, New Hampshire, North Carolina and South Carolina. To avoid a cancellation no matter where you live, raise your deductibles to at least $500 and preferably $1,000 on homeowners and car insurance. ''That way you won't be tempted to put in small claims below your deductible that might trigger a termination,'' says Stephen Brobeck, executive director of the Consumer Federation of America. If you learn your coverage won't be renewed and the insurer is still writing policies in your area, have your agent call the company's headquarters to get the decision reversed. If that fails, complain in writing to the company's chief executive officer. And if you still get no satisfaction, write to your state's insurance department.