While car insurance companies all have slightly different approaches to setting rates for their customers, claims history is a big factor for almost every company.
When setting rates for a new customer, car insurance companies often refer to the applicant’s CLUE report to review their claims history and help determine how much they should pay for coverage each year. More claims on your record, especially certain types of claims, usually mean you’ll pay more for car insurance.
What is a CLUE report?
CLUE is an acronym for Comprehensive Loss Underwriting Exchange, which is a database of claims history information provided by insurance companies. Whenever you file a claim, your insurance company reports those claim details to the CLUE database in the LexisNexis® system, allowing other insurance companies to see your claims history when you sign up for a new policy or switch car insurance companies.
Only insurance companies that contribute information to the CLUE system are allowed to pull information, so most insurance companies submit claims to the CLUE database.
How do insurance companies use CLUE reports?
Insurance companies use a number of factors to set your rates, including your age, ZIP code, and your driving history. One of the most important factors they use is your claims history, which is why most insurance companies contribute to the CLUE database. A CLUE report allows an insurance company to see all your claims, including denied claims, to help them set your rates.
For example, filing a claim with your insurance company because a chipmunk got inside your car and chewed up the wiring won’t show up on your driving history, but your insurance company wants to know about that claim so they can consider it when setting your rates. Your car insurance rates won’t necessarily go up for a non-accident claim, but the insurance company still wants to have all of that information when making a decision.
Do all insurance companies report to the CLUE database?
Most insurance companies contribute to the CLUE database, but not all of them. It is possible to find an insurance company that doesn’t use claims information from your CLUE report, but that doesn’t guarantee your rates will be lower.
If you specifically want to work with an insurance company that doesn’t report to LexisNexis® you can ask your agent or another insurance expert to help you get quotes from companies that don’t use the CLUE database.
Can I get a copy of my CLUE report?
Yes, you are entitled to a copy of your CLUE report through the federal Fair Credit Reporting Act. You can call LexisNexis® at 866-312-8076 or visit their website to get a copy of your CLUE report. Unlike your credit report, your CLUE report cannot be viewed electronically. It will be sent to your home address, whether or not you place the order online.
How to correct errors on your CLUE report
If you find an error on your CLUE report, you can reach out to LexisNexis® directly. Once your identity has been verified and your dispute has been filed, you will receive a letter with the results of your dispute that will describe the reason you are disputing the data and the results of the investigation, including:
The name of the data source
The address/location of the data source
The phone number of the data source
The letter will also include an explanation of what action is being taken to correct the error, or an explanation of why they believe the information is accurate and should not be changed. It will also include an up-to-date copy of your CLUE report reflecting any changes that were made.
Frequently asked questions
Why would I need to see my CLUE report?
The most important reason to check your CLUE report from time to time is to verify the accuracy of the information. Because it can impact your car insurance rates, fixing even one incorrect claim could save you hundreds of dollars each year.
How long do claims stay on your CLUE report?
Claims usually stay on your CLUE report for seven years. Each insurance company considers the CLUE report differently; one could see that you haven’t had any claims in five years and lower your rate because of it, while another could see a claim on your CLUE report six years ago and raise your rate to reflect what they consider a higher risk of future claims.
How often should I check my CLUE report?
Just like your credit report, you have the right to check your CLUE report annually at no cost to you.
