Do Insurance Companies Share Claim Information?

Do Insurance Companies Share Claim Information?

Technically, no. They don’t consult with each other or share claim information about your insurance history. And they don’t contact one another to discuss individual’s insurance claim history to determine their rates for coverage.

However, insurance carriers do subscribe to trustworthy third party services that provide them with information to help assess the probability that you might file a claim. One of these services which has become more common in recent years, is known as an insurance score. It’s essentially a credit score system that is used to illustrate your insurance risk at a particular point of time, and is usually different from your credit score.

The more tickets and accidents you tally on your insurance score record, the more risky you are to those insurance companies, translating into higher premiums for your insurance coverage.

How Do You Get Rid of a High Premium?

Once you are stuck with a huge premium, you can still obtain a better deal by gathering free online quotes or visiting local independent insurance agents. Remember each insurance company has a different “risk appetite” and you never know what savings are out there until you try. That’s why you want to shop around periodically, and switch your insurance accordingly.

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