If you’ve been shopping for insurance lately, you may have heard the phrase “CLUE report” uttered once or twice.
Insurance companies have at their disposal multiple reporting tools to determine what to charge you for car insurance or homeowner’s insurance.
These include your C.L.U.E. report, MVR, or motor vehicle record (personal driving history), vehicle history and financial responsibility reports. In short, they love data because it can help them reduce risk and maximize profits.
As a prospective customer, it is important to understand what is on these reports to ensure you aren’t being overcharged for insurance coverage.
We recommend getting online quotes as a first step in determining whether or not you have a suitable insurance rate.
What Does C.L.U.E. Stand For?
- CLUE stands for comprehensive loss underwriting exchange
- It’s essentially like a credit report for insurance companies
- That includes 5-7 years of property damage claims you’ve filed
- To determine how much of a risk you present as a customer
We’ll spare you the suspense. C.L.U.E. stands for “comprehensive loss underwriting exchange.” In simple terms, your C.L.U.E. report is a five- to seven-year history of property damage claims you have filed with your insurance company.
It’s similar to a credit report that details any late credit card payments or other adverse events so prospective creditors can determine whether you’re an acceptable borrower or not.
There are basic pieces of information in the report including the date of the claim and the type of loss.
Additionally, the final amount paid for the claim, along with general information, such as your policy and claim number, and the name of the insurance company that paid your claim.
The loss type and amount, along with loss history, can be used by insurers to help calculate how much to charge you for coverage. It’s one aspect of how car insurance rates are determined, other than the type of vehicle itself.
Put simply, your insurance company will charge higher insurance premiums for coverage if you have a history of filing insurance claims and vice versa.
Unfortunately, this discourages individuals from filing claims, even if they experience property loss, because it affects your insurability in the future (you may not qualify for certain insurance discounts).
On the other hand, it prevents frivolous property insurance and auto claims from being filed, similar to how insurance deductibles prevent people from filing claims for minor incidents.
Two Types of C.L.U.E. Reports
- There are two types of CLUE Reports
- One for auto insurance claims
- And another for homeowners insurance claims
- They are separate reports so shouldn’t affect pricing for other policy
- Can be ordered free once every 12 months
Keep in mind that there are records kept for both automobile and property claims, but not life insurance or health insurance.
There is a C.L.U.E. Auto Report and a C.L.U.E. Personal Property Report, both of which can be ordered for free once during a 12-month period, similar to consumer credit reports.
The two are kept on separate reports; so a claim related to your car insurance will not have any effect on what your insurer will charge you for home insurance.
And a homeowner’s insurance claim should have no bearing on what you’re charged for car insurance.
If you are buying real estate, the home sellers may provide a C.L.U.E. Report to provide claim history on the subject property. This can be useful to the buyer if they want to know if anything serious transpired over the years, such as major water damage, theft, etc.
Home sellers may also provide a “No Claim” confirmation letter issued by their home insurance company as an alternative if the buyer accepts it.
Tip: It is much more common for a car insurance companies to use an MVR rather than a C.L.U.E. report.
Ordering a C.L.U.E. Report
- If you want to order a free report
- Simply contact the CLUE Inc. Consumer Center
- You may also receive a free copy
- If your insurer sends you an adverse action letter or denies you coverage, among other things
Per the Fair Credit Reporting Act, it is possible to obtain a copy of your C.L.U.E. report by contacting:
C.L.U.E. Inc. Consumer Center
P.O. Box 105295
Atlanta, GA 30348-5295
Toll Free Number – 1-866-312-8076
Or by visiting their website. It’s actually a division of LexisNexis Risk Solutions, which developed C.L.U.E. for private passenger automobile in the 1980s.
And if an insurer sends you an adverse action letter or takes any of the following actions, you can request a free copy of your report as well:
– Denies you insurance coverage
– Increases your insurance rates
– Limits your insurance coverage
– Cancels your insurance policy
Disputing Your C.L.U.E. Report
- Only filed claims should appear on your CLUE report
- Not mere conversations about a potential claim
- You also have the right to dispute your CLUE report
- Similar to how consumers can dispute their credit report details
It’s also important to point out that a company cannot report a claim to C.L.U.E. if you have not actually filed the claim.
For example, if you were to call your insurer after an accident to ask questions about your deductible, your insurer does not have the right to report the incident.
Just like credit reports, you can dispute info on your C.L.U.E. reports and even add personal statements to your report if you want to clarify anything.
To do so, you can call or write to the address below, identifying the specific loss by providing the following information:
– C.L.U.E. reference or consumer number
– Name of the insurance company
– Date of loss
– Brief explanation regarding the challenged information
LexisNexis Consumer Center
P.O. Box 105108
Atlanta, Georgia 30348-5108
This action should only be performed by the policyholder.