Investigators for both the police and insurance companies are using Facebook and Twitter to obtain information in the ongoing battle against fraud.
But insurance companies are also apparently trying to use that same information obtained from such popular social media websites such as Facebook and Twitter to calculate insurance premium increases.
In other words, insurance companies are contemplating using social media to assess risk. Simply put, it will allow an insurance company to create a profile of how risky, or unrisky, a particular person or property may be to insure. It will allow an insurance company to collect information at a much more detailed level.
Today, insurance companies are barred from using social media to help set rates. But regulations change, and in the not to distant future it may become common practice for an insurance company to check your facebook site to help set your insurance rates. Indeed, many states used to bar insurance companies from using your credit score to set rates. But today, such practice is common place.
It should be noted that even if a policyholder’s social media profile is private, a court can approve an order allowing access to the profile for a limited time.
So the lesson to be learned here is that if you don’t want an insurance company – or anyone for that matter – to learn something about you, then don’t post it on your social media website. As you can see, insurance companies are trying to find out as much information as possible about you in order to assess its risk exposure.
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If you are facing a dispute over an insurance claim in Florida, contact Alvarez & Barbara, LLP at 305-263-7700 or toll free at 866-518-2913 for a free and confidential consultation to discuss your rights.