It happens all the time. A driver visits a car insurance agency to shop for new coverage. After answering all of the initial questions, he is given an attractive rate estimate. After applying, however, the official quote goes up. What happened? The driver’s CLUE report revealed data about a fender bender he was in several years ago – one that he had long forgotten. So what’s in your CLUE? Continue reading to find out more about this critical report and how you can ensure the data in your report is accurate and up to date.
What is the CLUE report?
CLUE stands for Claims Loss Underwriting Exchange. In the same way a credit report contains consumer information about your ability to manage credit, the CLUE report contains information about any claims you may against your coverage with previous car insurance agencies. The CLUE database has information on nearly every driver in the U.S. It usually includes:
- A list of all prior claims
- The total cost of previous claims
- How long ago the claims were filed
- The types of claims filed against your coverage (i.e. liability, collision, rental car reimbursement)
- Any claims you opened but did not complete
- Claims that were denied payment by the insurer
CLUE reports allow insurance companies to verify the information they receive from drivers. They tell the untold story and make it possible for insurers to see data from their competitors. Even if you hit a deer and didn’t get a ticket for it, the CLUE report will reveal the claim, which could, in turn, affect your coverage rates.
Each insurer uses CLUE data differently, but a history of prior claims raises a red flag that the driver might be at higher risk of another claim in the future. Insurers will use the data within a CLUE report as well as data from credit and driver history reports to determine if a driver is eligible for insurance. In most cases, coverage is offered, although the rates can vary wildly depending on the consumer data. Once a CLUE report has been generated, insurers will keep up their own records of your claims while still reporting them to the CLUE database.
CLUE and Your Right to Review Your Report
Federal law under the Fair Credit Reporting Act allows you the right to view reports on your consumer behavior. Like your credit report, you can request a copy of your CLUE report at no cost to you. LexisNexis®, the company responsible for maintaining the CLUE database, allows drivers to request a free copy of their CLUE report online or by calling 866-312-8076.
Once you have your report, be sure to examine it for accuracy. Should you discover any errors in the report, you can contact the insurance company as well as the LexisNexis Consumer line at 888-497-0011. Once you report the inaccuracies, LexisNexis will investigate the incorrect information and provide a response within 30 days.