Do insurance companies use private investigators?

Probably not if you are in the top echelon of the private investigative industry, meaning the top 10% in the U.S. Why? Insurance companies pay the least amount of money and do so because there are hundreds of PIs who are struggling and need their work.

This is a common practice known to adjusters, and it has not changed during our 43+ years in the industry. Their philosophy is understandable and hard to argue with. For the sake of this example, the insurance industry will pay a PI $25.00/hour. The top guys and gals in the industry may charge $100.00/hour, which is just average. The adjustor says, “I can use this new or inexperienced person four times for what the real professional will charge.

In our early days, I struggled with working for the insurance companies. Then they advised they would NOT:

1.) Pay for mileage.

2.) Pay for usual expenses.

3.) Pay for photos or videos.

They knew they had a captive audience of starving PIs. Some even started negotiating the low hourly rate. You won’t read or hear another PI agency or investigator document these facts because they work under the thumb of the insurance industry. I would rather wash cars than be under their dominance. I am glad to let that business go to those who are struggling. We know no one who has worked in this industry and made it into the top ranks financially or otherwise.