How Social Media Can Impact Insurance Rates

Social media has changed our world in so many ways. On the one hand, it has made staying in touch with friends and loved ones easier. You can share pictures and life updates and communicate from anywhere directly on your smartphone instead of having to spend countless hours flying distances or mailing letters. 

Social media has impacted our lives more than the creators probably ever imagined. Think about your personal circle of people. Is there a person you know of who doesn’t use at least one form of social media? 

Social media has many incredible benefits, but it can also affect your life in ways you would be surprised. You may not think about the correlation between types of home insurance and social media, but what you post on social media can impact your insurance rates. 

How Social Media Can Impact Insurance Rates 

Social Media’s Unexpected Impacts

You may think that as long as you are not posting anything illegal on social media, you would be free from judgment and repercussions, but that may not be the case. 

If you get into an accident, you’d expect the police to investigate what happened and who was the responsible party. But what you probably would not expect is for your insurance company to run its investigation as well. 

Apart from your insurance adjuster asking you questions, your insurance company may consider viewing your social media accounts. Insurance companies can legally search for anything that has been posted by you or about you on those accounts. 

And if your profile is public, it is even easier for them to find.

For instance, imagine you told your insurance company a story about an accident you were involved in, and the information you gave them leaned in your favor. Still, you posted a different story on your social media accounts, showing you may have been at fault. 

In the case above, if your insurance company runs a simple social media check on you and discovers this contradicting information you shared on the internet, your claim could be denied. 

Fraudulent actions could cause any future insurance premiums to become potentially higher due to the risk of you being fraudulent again. Insurance is a business and the companies have to protect themselves. 

If your accounts are public, they are viewable by any person or business. You likely agreed to this in the terms and conditions when you created your account. Be aware that even if you are not the one making the social media post, but you are tagged by someone else, it may be visible to others. 

Over half of employers said that they have decided against hiring a potential employee due to their social media profile. If that employee posts things that are racist, overly negative, or completely against the company’s brand, that company may be quick to dismiss a resume without even interviewing a candidate.

Social Media and Insurance Rates

Insurance premiums are based on many different factors like age, location, gender, marital status, credit score, and your previous claims history. Insurance companies, if able, will check their prospective clients’ social media accounts for any pertinent information before approving coverage. 

The average person probably doesn’t have anything to worry about regarding their social media accounts and insurance rates. Still, rates can go up, or insurance claims can be denied simply due to information found on the internet. 

Suppose you file a claim because your home was burglarized, but your insurance company discovers that you posted on social media about being on vacation. In that case, they could potentially deny your claims because you may have unknowingly posted this information for thieves to view and act on. 

Suppose you are a thrill seeker who enjoys swimming with sharks and skydiving as hobbies. In that case, your insurance company may be wary of providing coverage for a life insurance policy for you, or they may make your rates higher than they would otherwise be. 

Homeowners may not be aware that the type of pets affects insurance premiums. If you buy a new dog but forget to mention it to your insurance agent, you risk higher premiums and denied claims depending on the breed. 

Like having pets, if your insurance company discovers you are running a business out of your home because of a social media post, you could be charged with insurance fraud, cause a claim to be denied, or risk having a higher premium payment. 

Insurance Impacts on Social Media

Social media is an excellent tool for everyone, it can be used to our advantage, making it easier to do things like staying in touch with long– distance friends, and selling or buying items.  

You can also use it to remain up to date with neighborhood events, and even to share music with others. Social media can also be used in ways you would probably not think of. 

The next time you think about making a public post on your account, take a few minutes to think about what you post and the potential risk you are causing yourself or others. 

In the current world of ever-rising inflation, no one wants to be caught doing something that will raise their insurance rates or cause them to miss out on an employment opportunity. 

Kalyn Johnson writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. Having worked many years in the claims department of the insurance industry, Kalyn loves sharing her knowledge on what to do and what not to do to avoid higher premium costs. 


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