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Do Car Insurance Companies Share Information?

Car insurance companies are compelled to protect the personal information of their clients. Personal information may include:

  • Age
  • Marital status
  • Contact information
  • Identification numbers
  • Employment history
  • Financial information
  • Education
  • Gender

Generally, insurance companies do not share information. All personal information that is required can be collected by the insurance company you purchase your car insurance policy from. 

Do Insurance Companies Communicate With Each Other?

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Typically insurance companies do not communicate with each other regarding personal information.

Do Insurance Companies Share Claims?

No, insurance companies do not share claims. 

Do Insurance Companies Know if You Have Had an Accident?

Yes. There is a common data bank that all insurance companies have access to regarding claims.

What Information Do Insurance Companies Have Access To?

Insurance companies have access to the personal information you provide to them and other authorized entities where legally permitted. 

Do Insurance Companies Follow You?

In the event of a fraud investigation, an insurance company may have employed investigative staff or may hire a third-party to follow you. 

Information Collection Automation

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When someone visits a car insurance comparison website, or insurance company website, or a broker’s website, certain information is automatically collected. Examples of collectable information include:

  • The internet browser you used
  • Your computer operating system
  • Your IP address
  • The domain name of the website from where you linked to the website

The purpose of collecting this type of information is to allow the service providers the tools to better enhance their website and user experience. 

3rd Party Social Networking Platforms

On occasion, you may engage with an insurance provider through a third-party social networking platform. Insurance providers may access information associated with your social media account. This information may be used by the insurance provider to confirm someone’s identity. 

Personal Information Insurance Companies Collect

For the purpose of determining risk factors for clients insurance providers must collect a lot of personal information. Most of the personal information is collected directly from the client, however other sources of information collection may also be used. Personal information that insurance companies collect pertaining to their clients for the purpose of car insurance may include:

  • Birth Date
  • Gender
  • Marital status
  • Name 
  • Address
  • Telephone numbers
  • Fax numbers
  • E-mail addresses
  • Employment information
  • Medical and Health information
  • Driving record
  • Moving traffic violations and convictions
  • Year, make, model, and value of the vehicle (s)
  • Banking information
  • Credit card information
  • Credit scores
  • Credit history
  • Previous insurance and claims history
  • Customer and claims experience and satisfaction
  • Any other information that is required with the client’s consent or that is required or permitted by law

What Sources Do Insurance Companies Collect Personal Information From?

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  • Insurance companies are permitted to collect information from the following sources:
  • Third-party, reputable market research agencies hired by the firm for the purpose of customer and claims satisfaction surveys
  • When information is directly provided by a client through a website, contest entry ballot, sales, or customer service representative when obtaining a quote
  • Customers continued business with the insurer regarding claims settlements and payment history
  • Entities authorized by law, government, and industry, that have information pertaining to claims history, or other information that may be relevant to the application for insurance
  • Consumer reporting agencies
  • Government agencies, motor vehicle agencies, credit bureaus, and any other authorized fact verifying and collecting entities.

The Personal Information Protection and Electronic Documents Act

The Personal Information Protection and Electronic Documents Act is also known by its acronym PIPEDA. Organizations such as insurance companies must obtain the consent of an individual prior to collecting personal information. The personal information which is collected can only be used for the purposes it was collected. So in the case of car insurance, the insurance provider can collect the necessary information in order to make a fair determination of a person’s insurance rate. If the information collected is going to be used for any other purpose the insurance company must first receive consent again. Insurance companies are compelled to protect all personal information collected by appropriate safeguards. 

10 Fair Information Principles

Businesses, including insurance companies, must follow the 10 fair information principles to protect the personal information they have collected. The 10 fair information principles are:

  1. Accountability
  2. Identifying Purposes
  3. Consent
  4. Limiting Collection
  5. Limiting Use, Disclosure, and Retention
  6. Accuracy
  7. Safeguards
  8. Openness
  9. Individual Access
  10. Challenging Compliance

Insurance Companies Privacy Policy

Every insurance company has its own privacy policy. As a customer of the insurance company, you should always ask how the company collects personal information, what they do with your personal information, who they share your personal information with, how your personal information is securely stored, who has access to it, and how long it is kept for if and when you choose to take your business elsewhere. Insurance providers should be 100% transparent when it comes to the collection, use, storage, and destruction of your personal information. Also as a customer, you have a right to access all the personal information the company has collected on you. 

Who Do Insurance Companies Share Information With?

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Insurance companies have the right, with your consent, to share your personal information with those involved in the line of fulfilling their duties such as:

  • Any person authorized by you
  • Any person that is necessary to meet the insurance company’s legal, regulatory, insurance, audit, processing, and security requirements
  • Motor vehicle drivers licence authorities and motor vehicle registries
  • Any person permitted or required by law to have access to your personal information
  • Credit and financial organization
  • Other insurers if necessary
  • Credit card companies
  • Authorized providers of claims history and motor vehicle abstracts 
  • Professionals involved in the claims process, doctors, lawyers, adjusters that work with or are hired by the insurance provider
  • Organizations in which you hold a membership in the insurance provider’s sponsorship programs, to confirm membership, eligibility, etc. 

Cookies

Those who use websites to obtain quotes will notice that many sites use “cookies”. A cookie is a small piece of data that gets stored on your computer which allows your browser to remember something about a website. Cookies are frequently used by insurance companies to track how many visits they have had to their website and what activities the users perform while on the website. You have the right to refuse cookies but you may be limited on certain features within a website.

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