Has your automobile or homeowner’s insurance premium risen substantially even though you haven’t had any claims or received any tickets for driving infractions?
The cause could be an error in your C.L.U.E. report.
The report database is called C.L.U.E. (Comprehensive Loss Underwriting Exchange) by LexisNexis Risk Solutions. It’s essentially like a credit report for insurance companies. It includes a 5-7 year history of claims you’ve filed. The majority of insurance carriers provide claims data to it — data that includes names, birth dates and policy numbers; and claim details, such as date and type of loss and amounts paid. It also will tell you if a claim was denied.
The loss type and amount, along with loss history, can be used by insurers to help calculate how much to charge you for coverage. Put simply, your insurance company will charge higher premiums for coverage if you have a history of filing insurance claims and vice versa.
There are two types of C.L.U.E. reports – one for auto insurance claims and one for home insurance claims. They are separate reports so it shouldn’t affect pricing for the other policy. Each report can be ordered free once every 12 months by contacting the center below.
C.L.U.E. Inc. Consumer Center
P.O. Box 105295
Atlanta, GA 30348-5295
Toll Free Number – 1-866-312-8076
When you’re buying a home, a C.L.U.E. report can be helpful also. You can request a copy from the home seller to see if a property suffered losses from a storm, fire loss or had criminal activity. Major claims or repeated ones can be a red flag for a prospective buyer.
For automobile insurance, you want to pay attention to a field in your C.L.U.E. report called the fault indicator — where the insurer indicates who was at fault for a particular accident. The accuracy of that indicator is critical, because when you apply for car insurance and perhaps even when your policy comes up for renewal, insurers will obtain a copy of your C.L.U.E. report. That report is a key factor in calculating your premium, said Mark Romano, director of insurance claims projects for the Consumer Federation of America.
That’s why you should periodically request a copy of your C.L.U.E. report from your insurance carrier or directly from LexisNexis Risk Solutions. Check all parts of it for accuracy — especially the fault indicator field. Also, make sure there is no claim information listed more than once and no claims that are unknown to you.
If you find an error, request a correction in writing. Write both to your insurer and to LexisNexis Consumer Center, P.O. Box 105108, Atlanta, GA 30348-5108.
The Fair Credit Reporting Act requires LexisNexis Risk Solutions to then reinvestigate the matter and, if an error is confirmed, to delete the item from your file within 30 days from the date your letter was received.
Then follow up and obtain another copy of your C.L.U.E. report after the 30 days to ensure the changes were made. Keep a good record of your written requests, and if problems continue, contact your state’s department of insurance for assistance.
Hope you have a great week!
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