Most people never heard of a CLUE report. Do you know what a CLUE report is?
You're probably aware of your credit report and understand that it's important to check it annually to ensure that there are no errors that could negatively impact your score. But, there's another report out there that can affect your finances and options. It's the Comprehensive Loss Underwriting Exchange aka (CLUE) Report.
It's similar to your credit score, and your CLUE report is a little-known file that is compiled on you by the insurance industry that tracks you & your claims history as a customer, even when you change insurers.
What Is a CLUE report? Insurance companies have specific guidelines for determining policy rates, and the claims' history is just one important influencing factor. Some items appearing on a CLUE report can both positively or negatively affect your rating.
What information is included in a CLUE report? It includes policy information such as name, date of birth, policy number, claims information such as date of loss, type of loss, amounts paid, and a description of the property covered.
How is a CLUE report used? CLUE reports are used to underwrite and rate new policies. Most insurers renewing existing policies do not access CLUE reports at renewal, because they already have the loss histories for existing policyholders and properties in their own databases. It is "new" policy insurance carriers who will access the CLUE information to predicate the policy rates for the prospective insured.
Who can pull a CLUE report? If you're in example, purchasing a new home, the current owner will need to request the CLUE report and provide you with a copy. A CLUE report includes any homeowners insurance claims that have been made for the property in the past 5 to 7yrs. This information will detail if the home has had many claims, indicating it may be a red flag risk to a potential buyer that the home has the possibility for future claims. *It does not 'replace' a home inspection.
How far back does a CLUE report go? CLUE reports go back five years into the history of a property. The industry standard is to purge losses over 5 yrs old, however, they do carry a 7yr history.
What to do with a CLUE report? Once you have a CLUE report, the first thing you should do is read it through. This goes for your own home’s CLUE report and reports for homes that you are thinking about buying. For example, if the home is near water or known to flood frequently, insurance premiums can cost more or indicate the need for supplemental flood insurance.
Each insurer will have its own "system" for determining rates, so it can help to know how CLUE report outcomes can affect your premium. If you've made a claim for damage from any 'acts of God', i.e. extreme weather, for example, insurers may assume there is a higher chance that you will put in for claims again. To account for that possibility, they may increase your premium. (Theft and vandalism claims that show up on your report can also negatively impact your rate too.)
How does a CLUE report differ for car and home insurance? A CLUE report for car insurance provides information about claims filed for any given vehicle, including the name of the driver and policyholder, policy number, the date a claim was filed, what kind of claim it was (collision or liability, for example) and how much money was paid under each coverage. It may also provide the VIN number and make and model of the vehicle involved in the accident. A home CLUE report contains the named insured and their date of birth, in addition to claims made on the property and the amount that was paid. Both reports will usually indicate if the listed claims are open or resolved.
A CLUE report is a database of insurance claims managed by a company, LexisNexis— which is essentially a 'credit reporting agency' that maintains certain data on drivers (and homeowners). The major automobile insurance companies make a monthly report of their losses to CLUE. The information about you on the report can go back as far as seven years. The CLUE report will state who your current auto insurance company is and whether you are in active or canceled status. It may list prior insurance policies, but often only does so if you made a claim. The CLUE report will list the date of loss for insurance claims, which is important and critical information that the adjuster will use to determine your rate. Minor violations can increase your rates for three years, but major ones will mean higher rates for five years. If you have had no traffic violations or accidents in the last five years, this could result in a good discount on your insurance costs. The CLUE report will also list any unpaid claims. This could affect your rate as well with some insurance companies.
You can obtain a CLUE report on your own home, a home you're buying (by asking the seller to obtain one), and your auto; one free report every 12 months.
How to get a copy of a CLUE report
- Request a CLUE report online.
- Call 888-497-0011.
- Email firstname.lastname@example.org.
- Request a copy from a homeowner (if you are a potential homebuyer)
- **Auto insurance companies also use clue reports to determine your risk score. For auto contact LexisNexis Reports (800) 627-3487.
Disclosure and disclaimer information about LexisNexis . LexisNexis Consumer Center lets you request a copy of your consumer file once every 12 months & more.
You’ll be asked to provide the following personal information: Full name, social security number, date of birth, daytime phone number & home phone number, current address, and insurance claim history for the property or vehicle you insured. you’ll also have to answer several questions to verify your identity.
Ultimately, it can be beneficial to review your CLUE report before you shop for insurance. If you find any inaccurate information, it would be essential to correct it and or dispute it. Incorrect information about a past claim can make you appear riskier to insurers, thereby increasing your future insurance rates. If you find any inaccuracies in your home’s or auto's CLUE report, you can dispute the information with LexisNexis.
If there is an error you may contact them to add to the report explaining the error.
*Higher insurance rates are a combination of the CLUE report and its "rating" of your claims/driving record (risk rating) and the insurance company's policies.
Here is a Youtube video I came across that details a CLUE report.
Our organization, Keystone Advocates has assisted many people with disputing incorrect information on their CLUE reports, free of charge. We teach people how to's; to know their rights, and how to protect themselves. KeystoneAdvocates@proton.me. Text first 717.454.3691. We are vetted by Pennsylvania Senator Mastriano's office.
We trust this article has educated & helped someone today. ;)