Using Facebook to Gather Information about Auto Insurance Claims

In today's day and age, Facebook has become a way of life. It is estimated that for everyone in the United States with internet access, more than 80% have a Facebook account. However, consumers are increasingly concerned because they believe that their insurance companies may be using their private Facebook posts to investigate claims. Can this really happen? The answer is maybe, and here's how:

Using Social Media for Your Protection 

One of the reasons why insurance companies are beginning to turn to social media sites like Facebook is because people often have more vivid memories of an accident immediately after it happens rather than several days or weeks down the road. Experts in the field now claim that it is wise to take photos of the scene and upload them to Facebook along with a detailed (although respectful) account of what occurred. This way, in the event that there is ever any dispute later, the information is readily available for you to pull up and show to your agent. Insurance companies are almost twice as likely to check your social media sites if you have reported an accident-related injury, too. 

How Some Claims Are Denied 

However, there's another side to this story to consider, as well. Adjusters and agents will often look for the Facebook pages of individuals who have claimed bodily injury in an accident claim filed with their companies to see whether or not the claims are fraudulent. If someone says that they are unable to walk without significant pain due to the accident yet they post pictures of themselves golfing, skiing or performing other activities, then there is a very good chance that the claim will be denied because it was obviously fraudulent in nature. This mining is typically performed by special investigation units working for the insurance company, though third party investigators are sometimes hired, as well. 

Is This Legal?

Mining for information related to automobile accident claims is perfectly legal as long as the information gathered is part of a public profile. This means that if you have your account set to private and only people you have chosen to be 'friends' with can see your information, then they cannot breach that privacy in order to gain access to your information without breaking the law. However, an insurance adjuster absolutely can use information that is found on your friends' Facebook pages as long as they have permission from the account holder. Although some people complain that this is unethical, it is perfectly legal as long as your 'friends' give the okay. 

Protecting Yourself 

Of course, the best thing that you can possibly do to protect yourself in the event that you are involved in an accident is to avoid filing a fraudulent claim. With all of today's technology, you probably won't be able to get it past the specialists who know how to do their research. Other than this, if you are in an accident, you can post photos and an account of what happened for your own records. However, it is probably best if you avoid any statements or comments that could be considered disrespectful. The last thing that you can do to prevent unauthorized access to your personal information involves making sure that your Facebook account is set to 'private', keeping in mind that your profile picture and cover photo can still be viewed by anyone as if they were public. 

In a nutshell, while many consumers are upset and even angry that an insurance adjuster would access Facebook or other social media sites for the purpose of gathering information, if you play your cards right, this can only help you in the long run - if that person can even gain access to the information in the first place.

Understanding 'Catastrophic' Health Insurance

Because of the shape of the economy and the increasing costs of healthcare, there are many individuals and employers who are turning to High Deductible Healthcare Plans, also known as HDHPs or ‘catastrophic’ health insurance plans. Essentially, consumers who choose them will receive lower than average premiums with extremely high deductibles.

How it Works

Catastrophic health insurance plans aren’t like others in that most people actually end up paying for the majority of their healthcare-related expenses – including their prescription medications – out of pocket. Some of these have deductibles of $5000 or higher, meaning that even ER and urgent care visits won’t be covered until that deductible has been met. Even once the consumer has paid the $5000 out of pocket, only things like preventative care will be covered up to 100% under these plans. However, the healthcare reform laws that went into effect in 2014 now require insurance companies to pay for 100% of preventative care even before the deductible has been met.

Is It a Good Choice?

A catastrophic health care plan isn’t the best choice for everyone, though. People who are generally healthy may be able to get away with it since they’ll probably pay very little out of pocket. However, in the event that something terrible was to happen (such as a heart attack, stroke, cancer, etc.) then everything will be covered to an extent once the deductible has been met. This is how the policy got its name: it’s designed to provide ample coverage, but only in the event of a health-related catastrophe.

Choosing a Plan

While many people believe that these plans will only cover things like emergency room visits and hospital stays associated with sudden injuries or illnesses, this isn’t always the case. Many will pay for all healthcare related expenses once the deductible has been met, including any prescription medications or devices that may be part of a treatment plan. Individuals will likely have some co-pays associated with things that aren’t considered preventative, but these are generally 20% or less – much like other types of plans that are out there.

HSA Compatibility

An HSA, or a Healthcare Savings Account, was made possible by federal law back in 2004 and allows Americans to set aside a certain portion of their pre-taxed income to be used for healthcare expenses both now and in the future. In order for to be eligible for an HSA with a catastrophic health insurance plan, the deductible must be at least $1200 for an individual or $2400 for a family. Similarly, out of pocket maximums cannot exceed $5950 for an individual or $11,000 for a family. People who are younger than 55 can contribute as much as $3050 per year as an individual or $6150 as a family annually to an HSA; people who are 55 or older can contribute an additional $1000 per year individually.

Despite health care reform, it is anticipated that the catastrophic health insurance plans will continue to be popular among Americans. Some 10 million are currently insured under HDHPs, and that number is expected to climb as people purchase plans to avoid being penalized.  

The Future of Auto Insurance: Too Drunk to Drive? Your Car Can Tell

Although it’s always safe to have a designated driver if you’re going to be going out for a night on the town, your friends may not have to take your keys away in a few short years. Right now, scientists and engineers are working on new technologies that will allow your car to know if you’re too drunk to drive.

Current Technologies

Now, some people are probably wondering what’s so new about it since there are already ignition interlock systems in place that require drivers to blow into them prior to going anywhere. First, these are only provided to people who have been convicted of a DUI, they’re bulky, and they’re sometimes difficult to retrofit. The idea behind the newer technologies is to prevent someone who’s had too much to drink from getting on the road in the first place. It’s thought that this will lower automobile insurance costs, prevent accidents, and lower the number of injuries and fatalities associated with alcohol.

The New Ideas

The latest technologies (those that are currently being developed) will not only require a breath-based test before the vehicle will start, but will also be able to detect alcohol in the bloodstream via touch. There are some obstacles that must be overcome, though, such as how to discern the breath of the driver from the passengers, how to handle a driver that is wearing gloves, and even what to do in the event that the devices are installed in convertibles since the extra airflow will hinder the technology. Similarly, these devices must be able to handle wildly fluctuating temperatures as it can easily climb to oven-like conditions inside of any automobile during summer months.

Expected Availability

While prototypes are expected to be in operation sometime during the year 2015, it’ll likely be a while before these devices will really start selling, and experts believe that it’s more likely that they will be installed during the manufacturing process of new automobiles rather than retrofitted. It is also expected that only high-end luxury models will come with this safety feature at first, and that such installations will trickle down to economy-class vehicles as the years go by.

The Wave of the Future

Whether or not such devices become popular with the public is yet another debate. Some groups are concerned that, with the availability of the technology, government officials at the state level will attempt to make these technologies mandatory. While parts of the population agree that this would be a fantastic idea to keeping impaired people off the road, others believe that it is an infringement on constitutional rights. However, automobile insurance companies are already on board stating that if this technology is widely accepted, they will have no problems with offering discounts to those who choose to use it.

Whether or not devices that can detect alcohol in a driver’s bloodstream will gain popularity with the public remains to be seen, but they are in development and being tested as we speak. As of 2014, there has been no mention of how much this technology will add to the price of new cars if and when it is introduced. 

Things to Know about Mechanical Breakdown Insurance

In the event that you are involved in an accident, your car is damaged by a storm, or even if your car is stolen, traditional auto insurance can help you cover the costs associated with these mishaps. However, what happens if your car breaks down on the side of the road? Unfortunately, if your automobile is no longer under warranty, you may be left to cover these expenses on your own unless you’ve purchased mechanical breakdown insurance.

What Is It?

Mechanical breakdown insurance is purchased separately from your traditional auto insurance. There are several different types of entities that offer it, including car insurance companies, third party entities, automobile dealers and even the financial institution through which you financed your loan. For all of these companies, and for you, it is often in your best interest to purchase this insurance because it negates the possibility that you will stop making payments simply because you’re unable to drive your automobile due to a blown engine or failed transmission.

What It Does

There are a few things that you should be sure to understand before you purchase mechanical breakdown insurance. First and foremost, it won’t cover normal wear and tear on your vehicle. Similarly, the company providing the insurance may want you to prove that you’ve kept up with regular maintenance, so hanging onto those oil change and tire rotation receipts might not be a bad idea. Finally, keep in mind that there are different levels of coverage that can be purchased. A bare minimum plan may only cover certain essential parts, but a full-coverage plan may pay for any repair at all – including failure of the motor or transmission. Some policies even pay for towing, lock-outs and roadside assistance, too.

Factors Affecting Cost

With so many different options out there and so many types of vehicles on the road, pinpointing an average cost is difficult. These policies run anywhere from hundreds to thousands of dollars annually depending upon the age of your vehicle, the number of miles put on it, and the level of coverage you select. All in all, if you have a newer car that is driven fewer than 200 or 300 miles a month, you’ll get a better rate than someone who has an older car that is driven thousands of miles per month.

Does It Affect Auto Insurance Costs?

Perhaps the greatest thing about mechanical breakdown insurance is that filing a claim will not affect either the premium for the breakdown insurance or the premium for your standard automobile insurance. However, if necessary repairs are due to an accident, these claims must be filed with your insurance provider and not as a mechanical breakdown. In fact, some auto insurance providers may even provide discounts to those who have this coverage because your automobile is safer for you and for others if it is kept in good working order.

If you are considering mechanical breakdown insurance, be sure to compare it to your warranty if it hasn’t expired, find out what repairs are covered and which are excluded, and also make sure that the policy covers the mechanics you trust to repair your vehicles.