Insurance hikes for social media users predicted

UK-BASED insurance comparison site Confused.com, has today warned people who use social media sites such as Twitter and Facebook that they could eventually face hikes in their home insurance premiums.

PleaseRobMe.com has recently been raising awareness on the issue, seeking to make people think about how they use services like Twitter, FaceBook, Foursquare and Buzz and the dangers of letting criminals know they're not home.

Location based services such as Foursquare allow users to let people know that they are in a specific place – and consequently when they are not home!Confused.com is predicting the new wave in social media could eventually lead to big hikes in home Insurance premiums.

Darren Black, head of home insurance at Confused.com said: "I wouldn't be surprised that as social media grows in popularity and more location-based applications come to fore, insurance providers consider these in their pricing of an individual's risk and we could see hikes of up to 10% for people who use these sites.”

"Criminals are becoming increasingly sophisticated in their information gathering even using Google earth and street view to plan their burglaries with military precision. Insurance providers are starting to take this into account when they are assessing claims and we may in future see insurers declining claims if they believe the customer was negligent.”

"We would always recommend that our customers have adequate security and insurance in place to protect them should the worst happen, however they need to be aware that home security doesn't just mean physical locks."

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