Why Insurance Companies Hire Personal Investigators

Insurance companies hire investigators to review every aspect of your claim in the hopes of being able to deny, downplay, or dispute coverage.

When you suffer personal injuries and/or property damages as the result of an unexpected accident or mishap, insurance can help offset your expenses. However, it is important to understand that insurance companies are money making businesses and as such, will do whatever necessary to avoid paying out on settlements. This includes hiring personal investigators to thoroughly review all aspects of your case. Information these investigators obtain may then be used to either deny, downplay, or otherwise dispute your claim.

How Personal Investigators Save Insurers Money

It is no secret that insurance companies make huge profits. According to the Insurance Information Institute (III), property and casualty insurers took in over $540 billion in 2017. However, when you factor in the expenses these companies pay, their net income dropped to just over $36 billion, one of the lowest profits recorded in the past 10 years.

By far the biggest expense for insurers is the amount they pay out to policyholders in settling claims. This amount totals an average of roughly $300 billion each year. While these companies do raise their premiums each year, one of the biggest ways they can save money is by reducing the overall amount they pay out in claims. Personal investigators are used by insurers to review all aspects of your case. Information they provide can be used in three ways:

To dispute coverage: If there is evidence that you violated the policy or that your situation falls under an excluded category, the insurer can deny coverage.
To downplay claims: Investigators look for evidence to downplay the extent of injuries or property damage you suffered.
To deny the claim: If the investigator can show you were somehow at fault for an accident or otherwise responsible for your damages, the insurance company can deny payment.

Areas of Focus for Investigators

The Tennessee Department of Commerce offers numerous resources to protect consumers against unfair practices by insurance companies. While these companies are obligated to adhere to the terms of agreement with their clients, there are numerous loopholes in insurance contracts for a personal investigator to explore. Areas they are likely to focus on include:

Health history and medical reports: Using records you provide, they may be able to show you suffered a pre-existing condition or that your injuries are not as severe as you claim.
Past accident and police reports: By going through public records, they may attempt to show a pattern of behavior which may have contributed to your current situation.
Social media and online activities: Social media accounts are one of the first places a personal investigator will look for information used in denying or disputing claims.

Our Manchester Personal Injury Attorneys are Here to Help

At Burch, Morrison, & Stewart, we act as a strong legal ally on your side when dealing with insurance companies and their investigators. To protect your rights when filing a claim, contact our Manchester personal injury attorneys and request a consultation today.