The purpose of a CLUE report is to provide a centralized record of all the insurance claims associated with a specific home or a car insurance policyholder. Home and auto insurance companies use CLUE reports when calculating premiums to determine how much risk is presented by a certain consumer or property.
CLUE is a database run by LexisNexis that records up to seven years of claims information. More than 99% of auto insurance companies and 96% of home insurance companies report claims to CLUE, making it a valuable resource.
Potential home buyers can use CLUE reports to check for recurring issues with a property and to learn about their potential home insurance premiums. Similarly, drivers can use their CLUE report to determine when their old claims will stop affecting their rates. For more information, check out WalletHub’s guide to CLUE reports.
An insurance score is a number based on your credit history that is used to predict your likelihood of filing an insurance claim and costing an insurer money. Auto insurance scores, also called credit-based insurance scores, can be used to set car insurance premiums everywhere except for Massachusetts, Hawaii and California.… read full answer
The credit-scoring company FICO created the first insurance scores in 1993, and today FICO estimates that 95% of all personal insurers take insurance scores into account.
FICO scores are based on five categories:
40% past payment history
30% current level of indebtedness
15% length of credit history
10% new credit
5% variety of credit types
Multiple studies, including one by the Federal Trade Commission, demonstrate that the scores effectively predict risk for insurers, which is logical because individuals who responsibly handle their finances figure to be equally responsible with their cars or homes.
Where to Check Your Insurance Score
Insurance scores rely on information from your credit reports and are formulated by three main companies: FICO, LexisNexis, and TransUnion.
FICO insurance scores range from 250 to 900.
LexisNexis scores range from 300 to 950.
TransUnion scores fall between 150 and 900.
In general, insurance scores of 770+ are considered good, but the specifics vary based on the type of insurance score, given the different ranges.
How to Raise Your Insurance Score
Your credit information strongly influences your insurance score, so raising your credit score can decrease your car insurance rates. You can get personalized advice on how to improve your credit score, as well as how long it will take, using the Credit Analysis feature of your free WalletHub account.
Yes, insurance companies share claims history with each other using databases such as C.L.U.E., which is run by Lexis Nexis and contains claims data from more than 99% of car insurance companies. Insurers can check a driver’s claims history using C.L.U.E. if the driver wants a quote. Claims history information is important to insurance companies because drivers with a history of claims, especially at-fault claims, present more risk to insurers.… read full answer
Insurance claims databases are the industry’s equivalent of credit reports. Like credit reports, these databases are designed to provide a centralized record of a consumer’s past behavior. This information helps insurance companies decide what premium to charge based on the individual driver. But rest assured that your claims history is only one factor that goes into your premium. Insurers will also consider characteristics such as age, driving record, location, and vehicle information.
For more information on insurance claims history databases and to learn how to check your claims history report for free, check out WalletHub’s guide to C.L.U.E. reports.
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