Do Insurance Companies Talk to Each Other About Claims? What You Need to Know

If you’ve ever filed an insurance claim, you may have wondered – do insurance companies share information about claims with each other? Can details about your claim history impact your rates and coverage with other insurers down the road?

The short answer is yes – insurance companies do communicate information about customer claims amongst themselves, to an extent. This claims data sharing serves a purpose for insurers, but also raises some potential issues for consumers.

Below we’ll explain exactly how insurance claim information gets shared, what is shared, how it impacts you, and what you can do to take control of your claims record.

Why Insurance Companies Share Claims Data

While insurance carriers compete for customers, they also cooperate in certain areas like claims data sharing. Here are some of the main reasons insurers exchange claim information:

  • To get a complete history of a customer’s claims across providers. This helps them properly assess risk.

  • To prevent “claim hopping” between companies to file multiple claims.

  • To detect fraud by spotting suspicious claim patterns.

  • To price policies appropriately based on the claimant’s history.

  • To properly evaluate and settle new claims based on past ones.

So in essence, claim data sharing allows insurers to operate more efficiently and avoid losing money on high-risk policyholders who may try to take advantage of the system.

What Claim Information Do Insurance Companies Share?

Insurers share claims data through reporting agencies like the Claim Loss Underwriting Exchange (CLUE) and the Comprehensive Loss Underwriting Exchange (C.L.U.E.). Here are some examples of what claim details may be shared:

  • The number of claims filed by a policyholder

  • The dates claims were filed, opened, and closed

  • Details like the type of loss, claimant, amount paid, etc.

  • Notes on whether claims were paid or denied

  • Loss details not voluntarily reported by policyholder

  • Claims filed by household members or relatives

  • Information on gaps in coverage

So while insurers don’t directly share the full claim files, they share enough data for other carriers to get a clear overview of your claims history.

How Claims Sharing Impacts Consumers

Information shared between insurance companies can influence the coverage and rates you get in a few ways:

  • Eligibility – Frequent claims may make you ineligible with some insurers.

  • Rates – More claims generally lead to increased premiums.

  • Renewal – Claim patterns could impact likelihood of policy renewal.

  • Payment – Claims history could affect a company’s decision to pay a new claim.

The concern arises when inaccurate claim reports lead to unfair consequences.

How to Combat Incorrect Claim Reports

Here are some tips to protect yourself from issues with claim reports:

  • Review claims reports annually for errors.

  • Dispute and correct any inaccurate information found.

  • Be proactive reporting claims to all insurers when needed.

  • Provide as much documentation and evidence as possible with claims.

  • Consult attorneys for serious disputes causing damages.

The bottom line is that while claim sharing among insurers can benefit the industry, consumers need to monitor their records. Catching bad data early can avoid unnecessary claim denials or premium hikes down the road.

The Takeaway

  • Insurance companies share claims data through reporting agencies to assess risk, detect fraud, and price policies.

  • Information like number of claims, dates, payouts, and notes may be shared between insurers.

  • Incorrect claim reports could lead to eligibility issues, higher premiums, and unfair claim handling.

  • Being proactive in checking and disputing your claims record is key to avoiding problems.

So insurance carriers do pool certain claims details to operate efficiently and profitably. But consumers can protect themselves by reviewing claim reports for accuracy and seeking corrections when needed.

Should I Talk to the Other Driver’s Insurance Company After an Accident? | Car Accident FAQ (2020)


Do insurance companies communicate with each other after an accident?

Ideally, a representative from your own insurance company will speak to the other driver’s insurer. But this doesn’t always happen, especially if the accident was a minor one. So, communicating information about the accident may fall to you.

Do other insurance companies know about claims?

Yes, insurance companies share claims history with each other using databases such as C.L.U.E., which is run by Lexis Nexis and contains claims data from more than 99% of car insurance companies. Insurers can check a driver’s claims history using C.L.U.E. if the driver wants a quote.

Is it normal for the other person’s insurance calling me?

It is not uncommon for the insurance company to call to verify information. They often start up very friendly and even very apologetic to you that you are going through this. They may make statements like they want to “make sure you get your claim” or “get your claim settled fast.”

Is it better to go through my insurance or theirs?

After a car accident, you should notify your insurance company and file a claim, and not deal with the other driver’s insurer. Except in rare circumstances, it is not wise to contact them. Your insurance company represents you, and the other driver’s insurance company represents them.

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