When applying for auto or homeowner insurance, you authorize insurers to review your records with consumer reporting agencies. This includes reporting agencies and services like LexisNexis that will provide your CLUE report.
Insurance companies use CLUE reports to help decide what to pay for insurance. The reports are designed to accurately reflect your insurance claim history.
Expect higher premiums and limited coverage if your CLUE report has claims, says Stephanie Dunstan, regional vice president of Arch Insurance Group. “In fact, some insurance companies may refuse the consumer for coverage,” based on previous claims, she says.
Can you and should you get your own reference report?
As with credit reports, the Federal Fair and Accurate Credit Transactions Act (FACT Act) gives you the right to receive your CLUE reports annually. You may want to receive them every 12 months.
What is in the report has an impact on insurance costs and coverage. “Consumers should therefore check their CLUE report regularly to ensure that the loss information is correct,” advises Dunstan.
If you discover inaccuracies, correcting your reports can be time consuming. However, this will ensure that you get the best coverage options possible, says Dunstan.
If you find inaccurate or incomplete information in your report, you have the right to dispute that information. You should report any errors to LexisNexis and the FCRA requires them to work with insurers to correct any errors. If LexisNexis cannot verify the information with the insurer within 30 days, they will need to remove it from your CLUE report.