Can insurers share claim payout information?
Is it legal for car insurance companies to share private information on how much capital was spent on a policy holder's claim? My insurance company has shared or given access through C.L.U.E. Drivers History, Insurance Information Exchange (iiX), etc. on the sum of money they have spent on my claims, none of the accidents was my fault; due to the fact that I have full coverage. I can't get a lower priced auto Insurance because of the info. my insurance co. has made public to the other insurance co. My insurance list info. going back to 2013. I feel my Insurance co. is in violation of the Federal and State Privacy Act. Due to the fact that they (My Insurance Co.) is sharing damaging, unnecessary, malice, ill will, etc. info. to increase my insurance rates with them and other companies.
The C.L.U.E. report is used by many insurance companies to report claims. The amount paid out in a claim impacts the rates because there is a higher risk that they will have to pay out on the claim. They use the amount of the claim to help determine that risk. Most insurance companies report to C.L.U.E. and/or use it to determine risk. Any accident that is paid under your collision coverage will be listed as an at-fault accident because your insurance company paid for your damages. If you feel the accidents that are reported are incorrect you can dispute it with your previous insurer or LexisNexis. It is not illegal to report your claims history for other companies to rate the risk accurately. Accidents can impact your rates for up to five years. Good luck and if you have any questions, don't hesitate to ask.